Source: United States Senator Kevin Cramer (R-ND)
WASHINGTON –U.S. Senators Kevin Cramer (R-ND) and Bob Menendez (D-NJ), members of the Senate Banking Committee, introduced the Payment Choice Act to prohibit retail businesses from refusing to accept cash as a form of payment and prevent them from charging a higher price for using cash instead of other forms of payment. The bill will ensure customers have the freedom to choose how they pay for goods and services.
“Cold hard cash is still legal tender in the United States, despite some businesses’ exclusive acceptance of electronic payments,” said Senator Cramer. “Imposing premium prices on goods and services paid for with cash or forcing the use of credit and debit cards limits consumer choice and is just plain wrong. Americans should have the option of using plastic, but they should be the ones who make that choice, not businesses.”
“While electronic payments have grown in popularity and are for many a convenient form of payment, completely refusing cash denies people, frequently in underserved communities, from having equal access to participate in our economy,” said Senator Menendez. “This bipartisan, commonsense legislation would ensure that everyone who carries legal tender printed and backed by the U.S. Treasury, and especially those who are unbanked or underbanked, can continue to fully participate in the economy.”
The legislation is also supported by the National ATM Council.
“The hardworking men and women of America’s retail ATM industry, who make widespread convenient access to cash a daily reality for consumers throughout our nation, want to thank and applaud Senators Menendez and Cramer and Representatives Rose and Payne for their ongoing leadership in reintroducing the Payment Choice Act,” said Bruce Renard, Executive Director of The National ATM Council, Inc. “With the US dollar under attack as the world’s leading currency, it is more important than ever for our country to ensure cash continues fulfilling its essential role as legal tender here at home throughout the USA. The option for consumers to pay with cash for basic goods and services is an important economic right we must preserve for all Americans, including our most vulnerable citizens. Accepting cash as a payment option is not too much to ask of all the retail establishments blessed with the opportunity to do business in the greatest marketplace on earth.”
Joining Senators Cramer and Menendez are Congressmen John Rose (R-TN-06), Donald Payne (D-NJ-10), Alex Mooney (R-WV-02), and Gregory Meeks (D-NY-05).
Click here for bill text.
Background:
While the majority of American households have access to financial services, 4.5% of U.S. households do not have a checking or savings account. Those without access to financial services are more likely to have lower incomes, less education, or be a member of a racial or ethnic minority group. Despite a decline in cash payments during the last few years, this demographic represents nearly 20% of all payments in the U.S. economy according to a recent study.