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Bill

SF 3875

Prohibit a seller from imposing a surcharge when the seller does not accept cash as payment

2025-2026 Regular Session Introduced by Rich Draheim

Prohibits sellers from charging surcharges to customers in cashless transactions, preventing additional fees when sellers don't accept cash payments.

Referred to Commerce and Consumer Protection
#commerceandcommercedepartment #consumerprotection
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Bill Summary · SF 3875

Legislative bill overview

SF 3875 would prohibit sellers from charging a surcharge (additional fee) to customers who pay with non-cash methods when the seller does not accept cash payments at all. This bill essentially prevents businesses from penalizing customers for using credit cards, debit cards, or digital payment methods in cashless transactions.

Why is this important

This addresses fairness concerns in an increasingly cashless economy. As more businesses eliminate cash entirely, customers have no choice but to use card or digital payments—and currently some businesses charge extra fees for this forced choice. The bill aims to prevent what critics view as double-charging: customers must use non-cash methods AND pay a surcharge for doing so.

Potential points of contention

  • Business flexibility concerns: Retailers and payment processors argue surcharges help offset transaction fees they pay to payment networks, which can be 2-3% per transaction. Prohibiting these may increase prices for all customers or reduce business margins.
  • Cash acceptance threshold: The bill only applies to truly cashless businesses. It's unclear how "not accepting cash" is determined (point-of-sale policy vs. practical capacity), creating potential compliance ambiguity.
  • Interplay with existing law: Minnesota and federal law already have complex rules about surcharges vs. discounts. This bill may create conflicts or confusion with existing payment regulations.

Compiled from official sources — confirm details with the bill’s official record.

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