Here's what the Common Cents Act means for businesses, consumers
Summary
The House of Representatives passed the Common Cents Act, which allows businesses to round cash transactions to the nearest five cents since pennies are being phased out. The act aims to give clear rules to protect businesses and customers during cash payments and now goes to the Senate for approval.Key Facts
- The Common Cents Act sets guidelines for rounding cash payments to the nearest nickel (five cents).
- It instructs the U.S. Treasury to stop making pennies.
- Pennies will keep their value but will no longer be used for transactions requiring exact change.
- If the total is $10.02, it rounds down to $10.00; if $10.04, it rounds up to $10.05.
- Businesses currently risk lawsuits if they can’t give exact change, even if they round fairly.
- The measure is supported by business groups like the National Restaurant Association to protect businesses from legal problems.
- Producing pennies costs more than their actual value—almost four cents per penny.
- About 25% of restaurant customers pay with cash, making this law relevant for many businesses.
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