The Common Cents Act: What Penny Rounding Means for Cash Discount and Dual Pricing Merchants

The penny is on its way out. The U.S. Mint struck its last pennies for circulation in November 2025, and many businesses have spent the past year running short of them at the register. Now Congress has stepped in with a national answer to the obvious question: what do you do when a cash total ends in 3 cents and you have no pennies?

In late September 2026, Congress passed the Common Cents Act (H.R. 10167), which sets national rules for rounding cash transactions to the nearest five cents. The Senate passed it by unanimous consent after the House approved it earlier that month, and it was sent to the President. As of this writing, it was awaiting his signature.

If your business takes cash, and especially if you run a cash discount or dual pricing program, here's what the rounding rules mean for you.

What the Common Cents Act does

Based on the bill as passed and reporting on it:

• It formally ends penny production for circulation. Existing pennies stay legal tender, so customers can still pay with them.
• It lets businesses round cash totals to the nearest five cents when exact change isn't available.
• Rounding applies to cash only. Card, check and other electronic payments aren't rounded. They're still charged to the exact cent.
• Rounding is permitted, not required. Businesses that still have pennies can keep giving exact change.
• It looks at nickels too. Treasury can explore a cheaper metal mix for the nickel, and it must give Congress advance notice before discontinuing any circulating coin.

How the rounding works

The rule is based on the last digit of the cash total:

• Ends in 1 or 2 cents: round down to 0. ($12.02 becomes $12.00.)
• Ends in 3 or 4 cents: round up to 5. ($12.04 becomes $12.05.)
• Ends in 6 or 7 cents: round down to 5. ($12.07 becomes $12.05.)
• Ends in 8 or 9 cents: round up to the next 10. ($12.09 becomes $12.10.)

Because half the endings round down and half round up, rounding should roughly even out over many sales. It isn't meant to be a way to collect a little extra on every transaction.

Rounding applies to the final total of a cash sale, not to each item on the receipt. Prices and taxes are still calculated to the cent first.

California has its own version

States can act too. California's governor signed AB 1793, the California Common Cents Act, announced on October 2, 2026. It takes effect July 1, 2027, uses the same up-and-down rule, says rounding can't be used to overcharge customers and doesn't change how taxes or fees are calculated. If you're in California, follow the state rules once they take effect, and expect other states to look at similar laws.

What it means for cash discount and dual pricing programs

Cash discount and dual pricing programs create two prices for every sale: a cash price and a card price. Penny rounding only touches one of them.

Your card price doesn't change. Card payments are never rounded, so your card totals, receipts and processing are unaffected.

Your cash totals may be rounded. If your cash discount produces totals like $27.43, you can round that to $27.45 at the register when you don't have pennies. Your posted cash price stays exactly what it is. Rounding happens only at the final total.

Your posted prices still need to be accurate. Rounding isn't a reason to change how you display prices. Under a dual pricing program, both prices should still appear clearly before the sale, and under a cash discount program, the discount should still be shown on the receipt. If you need a refresher on the difference, see our guide to cash discount vs. dual pricing vs. surcharging.

Don't let rounding turn into an extra card fee. Some merchants may be tempted to round card totals up "to keep things simple." Don't. The rounding rules cover cash only, and an extra charge on card sales can raise surcharge questions. Our post on surcharging vs. dual pricing after the settlement explains why those rules matter.

A practical checklist for your register

1. Ask your POS provider about a cash rounding setting. Many systems can round cash totals automatically and show the rounding as its own line on the receipt.
2. Show the rounding on the receipt. A clear line like "Cash rounding: -$0.02" avoids confusion and disputes.
3. Round the total, not each item. Calculate prices and tax first, then round the final cash amount.
4. Train your staff. A one-minute explanation of the rule keeps cashiers consistent and customers comfortable.
5. Keep giving exact change if you can. Rounding is optional. If you have pennies, you can keep using them.
6. Add a small sign if needed. A short note near the register, such as "Cash totals are rounded to the nearest 5 cents," sets expectations. Keep it separate from your cash discount or dual pricing signage so both stay clear.
7. Watch for the final word. Confirm the law's signing and effective date, and check your state's rules before you change your register settings.

The bottom line

Penny rounding is a small change at the register, but it's a good reminder that cash and card payments follow different rules. For most cash discount and dual pricing merchants, the adjustment is simple: round cash totals according to the rule, leave card totals alone and keep your signage and receipts accurate.

Pine Payments sets up cash discount programs and dual pricing programs with compliant signage, receipts and terminal setup, so changes like this are easy to absorb. If you're still paying full processing fees on every card sale, a compliant program can eliminate processing fees. Here's how dual pricing works.

Want to know what your card fees cost you each year? Send us your most recent processing statement for a free savings analysis. We'll review your fees and show you your options, with no obligation.

This article is for general information and isn't legal advice. The Common Cents Act was awaiting the President's signature as of this writing, and federal and state rounding rules and effective dates may change; confirm the current rules for your business with your POS provider, processor or attorney.