Without pennies, should retailers round up or down? States offer their 2 cents

Published: Tuesday, December 30, 2025 at 3:00 pm

Penny Pinching: States Grapple with the Future of Cash Transactions

As the United States moves towards a future without the penny, retailers and lawmakers are facing a growing dilemma: how to handle cash transactions. With the U.S. Mint ceasing penny production, a shortage of the one-cent coin has emerged, forcing businesses to consider rounding policies. The absence of federal guidance has left states to navigate this complex issue, raising concerns about consumer protection, legal ramifications, and the impact on vulnerable populations.

Several states are taking action. New York has proposed legislation mirroring Canada's rounding policy, rounding to the nearest five cents. Georgia and Utah have issued nonbinding guidance. The proposed legislation in New York calls for symmetrical rounding, where purchases ending in one, two, six, or seven cents are rounded down, and purchases ending in three, four, eight, or nine cents are rounded up.

The issue is further complicated by the increasing number of jurisdictions requiring businesses to accept cash, a measure aimed at protecting those without access to electronic payment systems. This raises concerns about potential price discrimination and the need for fair practices.

While some retailers have adopted their own policies, such as rounding down in favor of the customer, others are hesitant, citing potential financial losses. The Retail Industry Leaders Association, representing major chains, is urging the federal government to provide a uniform solution. The American Bankers Association also supports federal action.

The debate highlights the need for clarity and consistency in a changing financial landscape. Lawmakers and consumer advocates are emphasizing the importance of protecting consumers, particularly those who rely on cash for everyday purchases.

BNN's Perspective:

The transition away from the penny presents a unique challenge. While a federal solution is ultimately needed to ensure consistency, states are right to address the immediate concerns. A balanced approach that considers both consumer protection and the needs of businesses is essential. Symmetrical rounding, as proposed in New York, appears to be a reasonable compromise.

Keywords: pennies, rounding, cash transactions, retailers, consumer protection, federal guidance, state legislation, symmetrical rounding, cash acceptance, vulnerable consumers, penny shortage, U.S. Mint, financial technology, SNAP, price discrimination

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