OPINION:
“Will that be cash or charge?” was once the standard question at the checkout counter. Now, President Trump’s call to cap credit card interest rates and legal settlement negotiations over “swipe fees” remind us of the advantages of one payment method and the high costs and confusion of the other.
As affordability concerns remain top of mind, Mr. Trump recently called for a 10% cap on interest rates charged by credit card companies, echoing legislation introduced in the Senate last year and promoted by retailer associations. That would be a sharp drop from the average 22% now imposed on Americans, who are weighed down by credit card debt totaling more than $1 trillion.
Meanwhile, merchants are getting clobbered by other card-related expenses, such as chargebacks, and by the newest wave of artificial-intelligence-driven fraud in their digital payment systems.
Visa and Mastercard recently exchanged more court filings with merchants on a settlement over the “swipe fees” that credit card companies charge businesses for each transaction. These fees either eat into retailer margins or get passed along to customers in the form of higher prices.
In a recent Truth Social post, President Trump said we need to “stop the out of control Swipe Fee ripoff.”
Under the agreement proposed in November, those processing fees would continue, and now might even vary by the type of card used. The popular rewards cards, for example, might face higher fees because of the benefits credit card companies must offer (and finance).
Merchants could choose to stop accepting certain types of cards, and consumers could be subject to additional surcharges.
This fight is another glaring reminder of the high cost of using credit cards. The focus on interest rates and fees underscores the value of the most traditional form of payment — cash — and why we must preserve it.
Data shows that Americans agree. In a recent national survey by the Siena Research Institute, 84% opposed the idea of the U.S. becoming a fully cashless society, and 85% said they would support requirements for physical retail businesses to accept cash.
With cash, what you see is what you pay — no fees, no hidden costs, no data trails. It doesn’t need electricity, an app or an internet connection. It’s immediate, predictable and private. It’s also egalitarian, with no benefits or disadvantages based on how much you spend.
Unlike digital transactions, cash also doesn’t track your purchases or sell your information. There’s no risk of identity theft or credit card fraud when you use it. When disaster strikes — whether a cyberattack, power outage or natural disaster — cash keeps communities stable and commerce flowing while digital payment options are disrupted.
Cash remains the easiest, safest and most secure payment method we have. Yet despite its many advantages, some retailers have stopped accepting it. Many customers and retailers forget about the hidden costs they incur directly or indirectly.
For the 25 million U.S. households that are unbanked or underbanked, cash isn’t just a preference; it’s a necessity. Americans of all backgrounds — including the elderly, people in rural communities, and veterans returning from deployments without established bank relationships — also depend on cash. Refusing to accept cash excludes literally millions of people from the economy.
The Payment Choice Act, bipartisan legislation pending in Congress, ensures Americans remain in control of how they pay for goods and services. It would require most bricks-and-mortar businesses to accept cash for transactions of up to $500, with a few reasonable exceptions.
No one is calling for the end of digital payments, but as these digital systems continue to grow and evolve, the focus on convenience should not blind us to the need for inclusion, privacy, choice, security and financial stability.
High credit card interest rates and fees are yet another burden Americans face, even as they already feel financially stressed. It highlights the advantages of cash, the only payment method that works for everyone, everywhere, every time. In an age of increasing complexity, it is still the simplest, most trusted form of payment we have.
As policymakers, merchants and consumers navigate the future of payments, they should remember that progress doesn’t have to mean abandoning what already works. The Payment Choice Act won’t stifle digital options or innovation, but it will ensure that no one is left behind and Americans get to decide what works best for them.
• Jeff Thinnes is CEO of JTI Inc., which supports the Payment Choice Coalition, a group advocating for the right to use cash for reasons of resilience, national security, privacy, fairness, safety and freedom of choice.
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