HF4858

Purpose

This bill would require sellers in Minnesota to accept United States currency (cash), including Federal Reserve notes, for purchases of goods or services, with several stated exceptions. The goal is to ensure cash payments are accepted in most retail transactions.

Main Provisions

• Retailers must accept United States currency for in-person purchases of goods or services.
• The requirement applies to a seller only when payment is made in person.
• If a seller has more than one point of sale at the same address, the seller must accept US currency at at least one point of sale at that address.
• The rule does not apply to transactions where the consumer must provide a security deposit placed on a credit card or a credit card number to cover unforeseen damages or expenses.
• The rule does not apply to sellers that use a device to convert a consumer’s cash into a prepaid card if the following conditions are met:
  • The transaction has no fee.
  • There is no minimum deposit requirement greater than $1.
  • The consumer is given a receipt showing the amount of cash deposited on the prepaid card.
  • The money on the prepaid card does not expire.
  • There is no limit on the number of transactions using the prepaid card.
  • The device is not used by a banking institution or a credit union (with some exceptions in the bill text).
• Bankers and credit unions are exempt from the requirement.
• The bill references definitions from another Minnesota statute (325F.80, subdivision 1) for terms used in this section.

Penalties and Enforcement

• A seller who fails to accept United States currency from a consumer would face a civil penalty of up to $250 per transaction or attempted transaction.

Significant Changes to Existing Law

• Introduces a new, explicit requirement that most sellers in Minnesota accept cash (United States currency) for in-person purchases, with clearly defined exceptions.
• Creates a framework for when cash acceptance is not required (e.g., deposits via credit card, prepaid card devices with specified conditions, and certain financial institutions).
• Establishes a per-transaction civil penalty for noncompliance, providing a specific enforcement mechanism.

Practical Considerations

• Consumers who prefer or rely on cash would be protected to the extent sellers are covered by the requirement.
• Retailers should review payment systems to ensure cash acceptance at the required points of sale and understand the specific exemptions.
• Businesses using cash-to-prepaid-card devices must ensure all listed conditions are met to avoid triggering the exemption.
• Banks and credit unions are not subject to the cash-acceptance requirement.

Implementation Notes

• The text references existing definitions from Minnesota Statutes for consistency, but does not specify a statewide implementation date or enforcement process beyond the listed civil penalty.

Relevant Terms - United States currency - cash - Federal Reserve notes - in-person payment - point of sale - security deposit - credit card - prepaid card - device to convert cash to prepaid card - receipt - expiration date - civil penalty - per transaction - Minnesota Statutes chapter 325F - banks - credit unions - exceptions (multi-location at a single address)