Subcommittee continues cash-payment bill after retailers raise operational concerns

House Bill 3971, a proposal to require retail businesses in South Carolina to accept cash for transactions up to $2,000, was presented in the Labor, Commerce and Industry subcommittee and continued for further consideration.

Representative Ligon presented the bill on the committee floor; the text as discussed would require retailers to accept cash for in-person transactions of $2,000 or less but would not apply to automated services or online purchases.

Krista Henson, executive director of the South Carolina Retail Association, told the subcommittee the majority of retailers already accept cash but cautioned against statutory requirements that limit retailers’ business decisions. "Some businesses, especially small ones, may choose to only accept cash to avoid fees," Henson said, adding that other retailers choose to accept cards because of their systems and staffing. She asked lawmakers to consider unintended operational and security costs if the legislature prescribes payment methods.

Committee members questioned Henson about whether retailers had discussed the bill with sponsors; Henson said she had not had direct conversations with Representative Ligon at the time of testimony and welcomed further dialogue.

Representative Brewer said small businesses already face many burdens and moved to continue the bill. The subcommittee voted unanimously to continue House Bill 3971; the vote was recorded as unanimous on the record but exact yes/no counts were not specified.

The bill remains under subcommittee consideration pending further stakeholder conversations and any potential drafting changes.