Sen. Floyd Prozanski told colleagues senators on the Senate Committee on Labor and Business Thursday that if a retailer in Oregon requires a customer to pay with a credit or debit card, they should not be permitted to charge that customer a credit card transaction fee.
Senate Bill 425, which would forbid shops from charging those fees if they do not accept cash, is sponsored by Prozanski, a Democrat from Eugene.
Although there are few restrictions, a bill requiring companies in the state to accept cash was already passed by Oregon lawmakers in 2022. For instance, the law does not apply to purchases made on airplanes, in farmers markets, or at roadside stalls. Large bills can be refused by businesses.
According to Prozanski, the 2025 bill is meant to be a follow-up. He admitted that companies frequently charge processing fees for accepting credit cards. However, he stated that a customer shouldn’t be punished for not being able to pay with cash.
According to Prozanski, if a business is pressuring a customer to use plastic, that shouldn’t be a hardship in the form of taxes or extra expenses.
At its first public hearing on Thursday, the bill was met with minimal excitement. Legislators were informed by Chris Coughlin, policy director for Oregon Consumer Justice, that this bill would stop businesses from charging extra fees to consumers because some still refuse to take cash. In her written evidence to the committee, she further stated that low-income individuals and novice customers are particularly burdened by hidden costs.
Coughlin informed lawmakers that these add-on fees are becoming more and more common in the current economic environment. This is just another one of those unnecessary fees that we encounter, particularly when there is no alternative for cash payment if one so desires.
Sami Edge writes for The Oregonian on politics and higher education. She may be contacted at (503) 260-3430 or [email protected].
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