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Senator Prezonski backs bill to bar surcharges when merchants refuse cash
Summary
A public hearing on Senate Bill 425 drew consumer advocates and senators who said merchants should not charge card-processing fees when customers have no cash option. The measure is in an early stage and will be amended after consultation with the attorney general’s office.
Senator Floyd Prezonski on Thursday told the Senate Committee on Labor and Business he is proposing Senate Bill 425 to stop merchants from charging a fee when they require customers to use a credit or debit card and do not accept cash.
The bill “prohibits a merchant from charging or collecting a fee when a person uses a credit or debit card to pay for goods or services if the merchant does not accept payment for goods or services in cash,” committee staff Whitney Perez told the panel during the first public hearing of the measure.
Prezonski told the committee he has heard consumers complain that some merchants already prefer card or digital payments and that, in some cases, merchants also refuse checks. “If a merchant is requiring you to or forcing you to use plastic, then that should not be a burden as to taxing or adding additional cost for the processing on that purchase,” Prezonski said.
Committee members asked whether the bill should include a dollar threshold (for example, very high-value purchases). Prezonski said no threshold is specified now; he and staff will consider whether adding one would be appropriate as the bill is drafted. He also told the committee the bill will be revised to fix the statutory section cited in the draft after consultation with the attorney general’s office.
Consumer advocates supported the idea in testimony. Chris Coughlin, policy director with Oregon Consumer Justice, told the committee that consumers increasingly encounter “drip pricing” or “junk fees” and that if a merchant disallows cash there should not be an additional fee for paying by card.
No formal action or amendments were taken at the hearing; the bill remains in the committee’s public hearing phase. Committee leadership said they will reopen the bill later in the session so additional witnesses can testify.
Looking ahead, committee staff and the senator expect to refine statutory references and consider clarifying exemptions or monetary thresholds during subsequent drafting and amendment work.
