Retailers Turn to Cash Rounding as Penny Supplies Dry Up, National Rule Sought

Overview

• Kwik Trip says all cash purchases at its roughly 900 stores will be rounded down to the nearest five cents, with electronic payments still charged to the exact amount.
• Love’s Travel Stops reports about 50 locations without pennies are rounding change up in favor of customers when needed.
• A coalition of retail and restaurant associations urged banking committee leaders to pass the Common Cents Act to permit rounding and prevent conflicting state and local cash laws.
• The pending bill would round only the final total of cash transactions to the nearest nickel, keep existing pennies as legal tender, and leave card and electronic payments unchanged.
• The U.S. Mint produced its last pennies in June and the Federal Reserve says dozens of coin distribution sites have run out, as officials tout expected government savings of about $56 million a year and Richmond Fed analysts warn of a potential $6 million annual ‘rounding tax’ on consumers.