H.R. 1138 — Payment Choice Act of 2025

This section establishes the short title of the Act as the “Payment Choice Act of 2025.”

This section states the sense of Congress that United States currency should be treated as legal tender throughout the United States and that consumers should have the right to use cash as payment at retail businesses that accept in-person payments.

This section establishes a new federal requirement under 31 U.S.C. § 5104 that retail businesses selling goods or services to the public at a physical location must accept cash for in-person sales of up to $500 per transaction and may not charge cash-paying customers a higher price than noncash customers. It applies to businesses that accept in-person payments at a physical location, including businesses that also accept telephone, mail, or internet-based payments, and it creates two exceptions: (1) temporary inability to accept cash because of a point-of-sale system failure or insufficient cash on hand to make change, and (2) use of an on-premises cash-to-prepaid-card device that is free to use, requires no more than a $1 minimum deposit, does not collect personal identifying information, and does not charge fees to use the resulting prepaid card. This section permits inactivity fees on prepaid cards issued through such a device only if the card has had no activity for the preceding 12 months, no more than 1 inactivity fee is imposed in any 1-month period, and the fee terms are clearly disclosed on the device and card. It also gives businesses a 5-year period after enactment during which they are not required to accept $50 bills or larger denominations, and directs the Secretary of the Treasury to issue a rule 5 years after enactment governing denominations that businesses are not required to accept; that rule must require acceptance of $1, $5, $10, and $20 bills. This section creates a private right of action for customers and prospective customers to seek preventive relief after providing written notice and allowing 45 days to cure or dispute the alleged violation. If the business does not respond adequately, the customer or prospective customer may file suit in federal district court or another court of competent jurisdiction. A violator is liable for actual damages and, if actual damages are less than $250, liquidated damages of $250, as well as civil penalties of up to $500 for a first offense and up to $1,500 for a second or subsequent offense. The section also permits the Attorney General to intervene in cases of general public importance and authorizes the court to appoint counsel for an individual plaintiff.