WASHINGTON (KFGO) – U.S. Senators Kevin Cramer and New Jersey Democrat Bob Menendez and the Senate Banking Committee members, Tuesday introduced the “Payment Choice Act”.
The bipartisan bill provides customers the freedom to choose how to pay for goods or services by prohibiting businesses from refusing to accept cash, posting signs that cash is not accepted, or charging a higher price for using cash.
“Businesses who prohibit cash payments discriminate against the millions of Americans who do not have bank accounts while forcing customers to exclusively use a less secure form of payment,” said Senator Cramer.“Our legislation protects people’s right to choose their preferred currency and ensures the money we print remains usable as legal tender for all debts, just as it says.”
“While I fully understand that businesses have expanded their contactless payment options during the pandemic, refusing cash discriminates against certain populations and denies people equal access to the same goods or services,” said Senator Menendez.
“Our bipartisan, commonsense legislation would guarantee everyone—including those who are unbanked or underbanked–- can continue to participate in the economy.”
According to the Federal Reserve, 6 percent of Americans are unbanked, meaning they don’t have a checking or savings account, and 16 percent of Americans are underbanked, which means they rely on a variety of financial services, such as money orders, to make transactions.
Unbanked and underbanked consumers are more likely to have lower-incomes, less education, or be a member of a racial or ethnic minority group.
Cash represents up to 30 percent of all transactions and 55 percent of transactions under $10.
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