WASHINGTON, D.C. (AURN News) — Fewer Americans reach for cash these days — and more stores are starting to say no to it altogether. But not everyone is ready to ditch dollars just yet. Two U.S. senators say it’s time to protect people who still use cash. Democratic Sen. John Fetterman of Pennsylvania and Republican Sen. Kevin Cramer of North Dakota have introduced a bill they say would guarantee consumers can continue using cash.
The Payment Choice Act of 2025 would ban most stores from refusing paper money for purchases under $500. It would also ban extra fees for paying in cash — something the lawmakers say hits unbanked Americans hardest.
And the timing may be critical. The Federal Reserve’s latest payment survey shows cash use continues to decline. In 2023, 87% of people said they used cash at least once in the past month. In 2024, that dropped to 83%. The total share of transactions made in cash also fell from 16% to 14% over the same period.
“We have millions of people in this country who don’t have access to bank accounts,” Fetterman said in a statement. “They must be able to go shopping with their hard-earned dollars.”
“Forcing the use of credit and debit cards or imposing premium prices on goods and services paid for with cash limits consumer choice,” Cramer added.
If the bill becomes law, it would make it illegal for stores to refuse cash for most in-person purchases under $500. Retailers would also be barred from charging more just because a customer chooses to pay in bills instead of plastic — unless the store is experiencing a system failure or doesn’t have enough change on hand.
There are a few exceptions. Businesses could use machines that convert cash into prepaid cards — but only if the kiosk doesn’t collect personal data, doesn’t charge a fee and accepts as little as a dollar.
Tap-and-go may be the norm, but lawmakers say cash still counts — especially for people outside the banking system. The Fed report shows that 94% of U.S. consumers still use or carry cash, and 5% remain unbanked altogether.
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