Round up or round down? That is the question facing retailers, restauranteurs and other public-facing businesses in the wake of the U.S. Treasury’s decision to stop making pennies last fall. That move, combined with a pre-existing shortage of the copper coins, has put cashiers in a variety of environments in a tough spot.

Lacking the pennies they need to make exact change – and a clearcut mandate from the federal government on how to address this situation – most are opting to either round up or round down to the nearest nickel. Those choosing to swallow the loss and round up are in effect cutting into their employers’ already thin margins, while those choosing the opposite tack risk drawing the wrath of customers who feel they’re being short-changed – literally.

Among the trade groups seeking guidance from Uncle Sam on how best to deal with this situation are (in alphabetical order) the National Restaurant Association (NRA), the National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA). Below are excerpts from either press releases or issue statements on those organizations’ websites on what they’d like to see Congress do:

The NRA said its member eateries typically see more than one in four transactions paid in cash, and that when operators can’t provide exact change, “it can cause chaos at the point of sale. To ensure restaurant operators can navigate the current penny shortage, the National Restaurant Association is seeking two solutions:

Urging the U.S. Treasury, the Federal Reserve, and the coin supply chain to work together to ensure the nationwide circulation of the penny.
Federal legislation establishing nationwide rounding rules with a safe harbor for restaurant operators handling transactions when exact change is unavailable.”

The NRF notes that the current lack of federal guidance on how retailers should handle cash transactions without pennies “has created an environment of uncertainty around what is permissible under federal, state and local law. This has led to many retailers implanting policies to always round cash transactions in the customers’ favor, losing up to four cents per transaction. While that might not seem like much, the extra change adds up over tens of thousands of transactions.

“The lack of federal guidance also exposes retailers and stores to legal and compliance risks tied to rounding practices. In some states and cities, it is illegal to round cash transactions because doing so violates laws requiring equal treatment between cash customers and those using other forms of tender.”

RILA “is urging lawmakers to prioritize addressing the nation’s ongoing penny circulation problems and swiftly pass legislation addressing the issue when the second session of the 119th Congress begins in January. Retailers across the country are grappling with significant challenges due to the absence of clear legal guidance regarding the future of the penny, especially on critical matters such as rounding cash transactions. Only Congress can provide the clarity and directives necessary to ensure a smooth transition for both retailers and consumers. Retailers urge Congress to address penny crisis in new year.”

The RILA statement added, “This is not an issue that can be left to the states to resolve. Retailers who operate in multiple states need a uniformed approach that can only be set by the federal government. RILA urges Congress to move expeditiously and deliver the legal certainty and direction that retailers and their customers depend on.”

Note I: None of the three groups above has publicly advocated for either rounding up or rounding down; it appears they just want the issue settled by law, one way or another.

Note II: This is story will be updated as events dictate.

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