Senate sends penny bill supported by banks to Trump's desk

This legislation directly affects how you handle cash at the point of sale. If signed into law, the bill allows retailers, banks, and credit unions to round cash transactions to the nearest nickel. This move is part of a broader federal effort to phase out the penny due to high production costs. For your business, this means a shift in daily register operations and accounting. While digital and card payments remain unaffected, your staff will need training on new rounding rules for cash customers. Generally, transactions ending in .01, .02, .06, or .07 would round down, while .03, .04, .08, and .09 would round up to the nearest five-cent increment. This helps speed up checkout lines and reduces the logistical burden of ordering and storing pennies. However, it is important to communicate these changes clearly to customers to avoid friction at the register. Even if your business relies heavily on consumer financing or credit, your down payments and small-ticket cash sales will be governed by this new standard. Keep an eye on your POS software updates, as providers will likely automate these rounding rules once the bill is finalized.

Source: American Banker — Top News

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