A bipartisan Senate bill put forward by Sens. Bob Menendez, D-N.J., and Kevin Cramer, R-N.D. would prohibit retailers from turning away cash payments from customers. The Payment Choice Act would impose fines for businesses that refuse to accept cash or charge a higher price for cash transactions, including a $2,500 fine for the first offense and $5,000 for the second.

Why should we care?
Mastercard reported a 40% jump in contactless payments since the onset of the pandemic; recent data from PYMNTS suggests that 40% of U.S. debit payments were contactless, up from 27% before the pandemic. There are concerns that digital-only payments will restrict access for the unbanked and underbanked, which together make up more than 20% of U.S. adults. The rise of cashless payments underpinned some U.S. jurisdictions’ moves to force businesses to accept cash, and will likely renew discussions among banks and fintechs on ways to bring the underserved into the digital payments ecosystem.