# Payment Choice Act of 2023: What It Means for Cash Payments

This bill would require most brick-and-mortar stores to accept cash as payment for purchases up to $500 per transaction. Right now, a growing number of businesses—from coffee shops to restaurants to retail stores—have gone "cashless," refusing to accept physical money and requiring customers to pay with credit cards, debit cards, or digital payment apps. This bill would make that practice illegal for in-person transactions at physical store locations.

The law would apply to any retail business that accepts in-person payments at a physical location, including stores that also sell things online but have a physical storefront where customers can pay in person. Stores couldn't charge customers more for paying with cash than they charge customers using other payment methods. For the first five years after the law passes, stores would be allowed to refuse $50 bills and larger denominations, but they'd still have to accept $1, $5, $10, and $20 bills. After five years, the Treasury Secretary would decide which bill denominations stores must accept.

There are a few exceptions built into the bill. Stores wouldn't have to accept cash if their payment system temporarily breaks down or if they don't have enough cash on hand to make change. Alternatively, stores could offer a machine that converts cash into prepaid cards with no fees, no minimum deposit requirement, and no expiration dates on the funds—though they could charge an inactivity fee after 12 months of no use if they clearly display that fee upfront.

If a store violates this law, customers could send a formal notice giving the business 45 days to fix the problem. If the store doesn't respond or doesn't fix it, customers could sue in federal court. Violators would face damages of at least $250 (even if actual damages are lower) plus civil penalties of up to $500 for a first offense and $1,500 for repeat violations. The bill also allows states and local governments to have stricter cash-acceptance rules if they want to.

Payment Choice Act of 2023

Payne, Donald M.

Payment Choice Act of 2023 This bill requires retail businesses to accept cash as a form of payment for on-site sales of $500 or less, and it prohibits them from charging cash-paying customers a higher price compared to customers not paying with cash. Businesses covered by this bill are those engaged in the business of selling or offering goods or services at retail to the public that accept in-person payments at a physical location. The bill provides for enforcement through preventative relief, damages, and civil penalties.