New Bill Would Change How Shoppers Pay With Cash: What to Know
Summary
The Common Cents Act has been passed by the Senate and will be sent to President Donald Trump for approval. The bill will stop the production of pennies and introduce rounding of cash transactions to the nearest five cents while keeping electronic payments unchanged.Key Facts
- The bill ends the production of pennies after 234 years but existing pennies can still be used.
- Cash payments will be rounded to the nearest nickel when exact change is not available.
- Amounts ending in 1, 2, 6, or 7 cents will be rounded down; amounts ending in 3, 4, 8, or 9 cents will be rounded up.
- Small transaction amounts of 1 or 2 cents can be rounded up to 5 cents.
- Electronic payments, like credit or debit cards, will still be charged the exact amount.
- The bill allows the Treasury to change the metal composition of nickels to reduce production costs.
- Pennies currently cost about 3.69 cents to produce, which is more than their value, and stopping production is expected to save $56 million yearly.
- The bill also requires 60 days' notice to Congress before the Treasury stops producing any other circulating coins.
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