With the U.S. Mint ceasing penny production last year, pennies are now harder and harder to come by.  RAM members and retailers nationwide are now moving toward rounding cash transactions when exact change is unavailable. 

 

The industry continues to advocate for quick passage of the Common Cents Act, legislation that will allow cash transactions to be rounded up or down to the nearest five cents and is expected to include important standard rounding guidance and preemption of any law that may be in conflict.

 

On December 23^rd, the U.S. Treasury posted the following update:  “Penny Production Cessation FAQs”.  The update cites a report from the National Council of State Legislators with recommended rounding guidance:

 

“The most recommended form of rounding is symmetrical rounding whereby if the final digit of the total transaction amount (including taxes) is 1, 2, 6, or 7 cents, the amount is rounded down to the nearest multiple of five. If the final digit is 3, 4, 8, or 9 cents, the amount is rounded up. Transactions totaling exactly $0.01 or $0.02 might be rounded up to $0.05. Rounding rules would not apply to payments made via electronic methods, checks, gift cards, or other non-cash instruments.”

 

As we await formal federal or state action and (hopefully) a standardized national rounding rule, RAM members are left to implement their own rounding practices.  Any member implementing any rounding policy is strongly advised to post conspicuous consumer notice and disclosure of the policy at the point of sale.