PAYMENT CHOICE ACT

INDUSTRY NEWS

PAYMENT CHOICE ACT

Senate Bill Joins House Bill

Senators Bob Menendez (D-N.J.) and Kevin Cramer (R-N.D.) introduced a bill in early July prohibiting retailers from declining cash payments from customers, as businesses promote “contactless” digital payments as they grapple with the coronavirus pandemic. While brickand-mortar retailers are promoting “contactless” digital payments to supposedly minimize germ spread during the coronavirus pandemic, the senators warned that should any retailer ban cash entirely, it would be discriminatory at a time when many Americans are facing financial hardship. The bipartisan bill, S4145, is a companion bill to HR2650 introduced in Congress in May 2019 by Representative Donald M. Payne Jr. (D-N.J.), which has since been referred to the House Committee on Financial Services. The House bill has garnered 44 cosponsors, both Republican and Democratic. Both bills are identical in their terms and are titled the Consumer Choice in Payment Act of 2019.

“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 MENENDEZ…

Approximately 20% of U.S. households have no access or limited access to checking and savings accounts. Of those households, around 6% are “unbanked,” meaning they have no access at all. Fourteen percent of unbanked Americans are Black, 11% are Hispanic, and 4% are White. As weekly jobless claims grow by the millions, the number of Americans without access to bank accounts may rise.

“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 Menendez in a statement.

The Payment Choice Act targets businesses that refuse to accept cash as payment, post signs stating that cash will not be accepted or charge a higher price for cash over other forms of payment. It proposes a maximum fine of $2,500 for the first offense and $5,000 for the second.

`The Consumer Choice in Payment Coalition (CCPC), of which FiSCA is a participant, praised the introduction of the House bill and urged that the legislation be acted upon expeditiously.