New Bill will Stop Oregon Merchants from Forcing Customers to Use Credit Cards

Oregon retailers who insist that customers pay with credit or debit cards instead of with cash will not be able to charge them for transaction fees.

This is the aim of Senate Bill 425 proposed by Sen. Floyd Prozanski, D-Eugene.

Senator Prozanski says Customers are Burdened with Additional Costs

Addressing the Senate Committee on Labor and Business yesterday, Prozanski said merchants who force customers to use cards and not cash should not be burdened with additional costs.

He was supported by the policy director for Oregon Consumer Justice, Chris Coughlin.

She told lawmakers the proposed bill would put an end to merchants who refuse to accept cash payments from levying additional fees on customers. Coughlin pointed out that hidden fees were onerous to low-income and inexperienced customers.

In 2022, Oregon lawmakers approved a bill requiring businesses to accept cash. However, the bill excludes farmers’ markets, roadside stands, and purchases made aboard aircraft. Businesses can also refuse to accept large bills.

Prozanski told the Senate Committee that his proposal was a follow-up to the 2022 bill.

While acknowledging that businesses frequently pay processing fees for credit card transactions, he believed that customers should not be penalized for opting to use cash.