$100 Cash Rule Lets Stores Hand You A Prepaid Card

The text as introduced · 500 words

By: Harris Davila
H.B. No. 4610

A BILL TO BE ENTITLED

AN ACT

relating to requiring the acceptance of cash payments by retailers

in certain transactions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 121 to read as follows:

CHAPTER 121. ACCEPTANCE OF CASH PAYMENTS BY RETAILERS

Sec. 121.001. DEFINITIONS. In this chapter:

(1) "Cash" means United States coins and currency,

including federal reserve notes.

(2) "Retailer" means a person that engages in the

business of selling or leasing, or offering for sale or lease, goods

or services at retail to the public.

Sec. 121.002. RETAILERS PROHIBITED FROM REFUSING TO ACCEPT

OR CHARGING HIGHER PRICE FOR CASH PAYMENTS; EXCEPTIONS. (a) Except

as provided by Subsection (b) or (c), a retailer that accepts

in-person payments at a physical location in this state, including

a retailer accepting in-person payments at a physical location for

telephone, mail, or Internet-based transactions:

(1) shall accept cash as a form of payment when

tendered by a customer in a transaction for the sale or lease of a

good or service if the amount of the transaction is $100 or less;

and

(2) may not charge a customer a higher price for paying

in cash for a good or service.

(b) A retailer may refuse to accept cash as a form of payment

if:

(1) there is a temporary sale system failure that

prevents the retailer from processing cash payments;

(2) subject to Subsection (d), the retailer

temporarily has insufficient cash on hand to make change for cash

transactions; or

(3) the retailer provides customers with a device on

the premises that converts cash into prepaid cards, provided:

(A) there is no fee to use the device;

(B) the device does not require a minimum deposit

of more than $1;

(C) except as provided by Subsection (e), any

funds placed on a prepaid card from the device do not expire;

(D) the device does not collect any personal

identifying information from the customer; and

(E) there is no fee to use the prepaid card as

payment.

(c) A retailer is not required to accept cash payment in

bill denominations of more than $100.

(d) If a retailer refuses to accept cash as a form of payment

under Subsection (b)(2), the retailer shall inform the customer on

refusal of the time and date the retailer expects to have sufficient

cash on hand to make change for the transaction, which may not be

later than 48 hours after the refusal. This subsection does not

require a retailer to hold a good or service until the customer

returns to make the transaction.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.