Making Change: The Common Cents Act and What It Means for Your Business

The U.S. currency landscape is on the verge of a historic shift. As of July 2026, the Common Cents Act (H.R. 3074) has officially cleared the House of Representatives. This bipartisan legislation, aimed at modernizing our coinage and reducing government waste, marks a significant step toward ending the production of the penny.

For business owners, this isn't just about coins—it's about preparing for a new way of handling cash transactions.

What the Common Cents Act Means

The core objective of the bill is simple: stop minting a coin that costs nearly four times its face value to produce.

Here are the key takeaways from the legislation:

• Production Halted: The U.S. Treasury would be directed to cease the production of the one-cent coin.

• Legal Tender Remains: Existing pennies will remain valid currency. You don’t need to worry about the coins in your register suddenly becoming worthless.

• Non-Cash Transactions Unaffected: The bill specifically clarifies that credit cards, debit cards, mobile payments, and checks are not subject to rounding.

• Standardized Rounding: The act provides a clear framework for rounding cash transactions to the nearest five cents when exact change isn't possible.

How Rounding Impacts Businesses

While the move to a "nickel-only" cash system is designed to save the government money and streamline currency, it introduces new considerations for your daily operations.

1. The "Symmetrical Rounding" Strategy

The most common approach—and the one often recommended—is symmetrical rounding. This means that if a total ends in 1, 2, 6, or 7 cents, you round down; if it ends in 3, 4, 8, or 9 cents, you round up. In theory, this balances out over time, ensuring neither the business nor the customer consistently loses out.

2. Legal and Compliance Considerations

Currently, the lack of federal standards has left some businesses vulnerable to confusion or litigation regarding "exact change" requirements. The Common Cents Act aims to provide the "certainty" that industry groups like the National Restaurant Association have been advocating for.

However, until the bill is fully signed into law, businesses should:

• Check Local Regulations: Some states and municipalities have specific "cash-acceptance" laws that might differ from federal proposals.

• Maintain Transparency: If you decide to implement rounding policies, ensure they are clearly disclosed to customers before the purchase is finalized.

3. Operational Tips for the Transition

• Update Your POS: Work with your point-of-sale provider to see how they can automate rounding for cash transactions while keeping electronic transactions exact.

• Train Your Staff: Your team is on the front lines. Prepare them with a script to explain why rounding is occurring so that customers feel informed rather than short-changed.

• Track the Impact: Keep an eye on your books. While minor, consistent rounding—especially if you choose to always round down to protect your brand image—can have a cumulative effect on your bottom line.

The Path Forward

The Common Cents Act now heads to the Senate. As the bill moves through the legislative process, now is the perfect time to review your cash handling procedures and ensure your business is ready for a future without the penny.

Change can be daunting, but with clear communication and consistent policies, this transition can be a seamless part of modernizing your customer experience.

Are you a business owner currently dealing with a lack of pennies in your register, and if so, what strategies have you already implemented to manage change?