In a bipartisan proposal, Senator John Fetterman (D-PA) and Senator Kevin Cramer (R-ND) introduced the "Payment Choice Act of 2025," which would require in-person businesses to accept small cash payments from customers.
“It’s simple: if you’re open for business in America, you should take U.S. dollars,” said Senator Fetterman in his press release. “I’m proud to introduce the bipartisan Payment Choice Act with Senator Cramer because every American should be able to use paper currency if they choose. We have millions of people in this country who don’t have access to bank accounts, and they must be able to go shopping with their hard-earned dollars.”
While the majority of American households have access to digital financial services, 4.2% of American households do not have a checking or savings account, according to a 2023 FDIC survey.
The newly proposed bill would require any person to accept small bill cash payments, specifically bills under $50. The bill stipulates that the large bill exemption would be reevaluated after five years of active enforcement.
"To ensure that United States currency is treated as legal tender to be accepted as payment for purchases of goods and services at brick-and-mortar businesses throughout the United States, and for other purposes," the bill reads. "Every consumer should have the right to use cash as payment at retail businesses that accept in-person payments."
The bill exempts people from accepting cash in three specific situations: if they are experiencing a temporary sale system failure, if they temporarily don't have enough cash to make correct change, or if they provide customers with a device to convert cash into a prepaid card with no fees or collection of personal information.
Beginning after its first anniversary, the bill would also require the Federal Deposit Insurance Corporation (FDIC) to file an annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
These reports would be required to list the number of automated teller machines (ATMs) that are in service and that are insured by the FDIC. It would also be required to designate the locations of physical ATMs, as well as the approximate location where mobile ATMs are used.
Cash transactions in the United States made up 16% of all business in 2024, according to the Federal Reserve's annual report. Consumers under 55 years old used cash for 12% of their payments in 2023, compared to 22% for those above 55 years of age.
"Cash is still legal tender in the United States, despite some businesses’ exclusive acceptance of electronic payments,” said Senator Cramer in a press release. “Forcing the use of credit and debit cards or imposing premium prices on goods and services paid for with cash limits consumer choice. Americans should have the option of using cards or cash, but they should be the ones who make that choice.”
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