As the penny fades from circulation in the United States, retailers and lawmakers are grappling with how to handle transactions in a cash economy devoid of this once ubiquitous coin. This issue has gained urgency as businesses seek clarity on whether to round cash transactions up or down, while state legislatures begin to offer guidance amid a backdrop of federal inaction. The decision on rounding practices is not merely a trivial matter of cents; it carries significant implications for consumer rights and legal accountability. Many retailers have been left to enforce their own policies in the absence of federal guidelines, leading to a patchwork of practices across the country. For consumers, particularly those who rely solely on cash, the stakes are high, as they could end up paying more or receiving less in change. In February, former President Donald Trump announced a move to phase out the penny, citing the high production cost—about 3.7 cents to mint each one—making it economically unfeasible to continue its production. The last penny was minted on November 12, but by that time, many retailers had already reported extensive shortages, creating confusion during cash transactions. States like New York have taken proactive steps to address the situation by proposing legislation that mirrors Canada’s rounding standard, which allows for transactions to be rounded to the nearest five cents. New York Democratic Assemblymember John T. McDonald III stated, “In the absence of federal action, I think it’s important that the states act to provide clarity—for everybody: clarity for the consumer, as well as the merchant and the state.” McDonald’s bill suggests rounding rules where purchases that end in one or two cents would be rounded down, while those ending in three or four cents would round up, offering a balanced approach to the situation. Meanwhile, officials in Georgia and Utah have provided nonbinding guidance to businesses, urging them to consider the implications of their rounding policies. This guidance becomes critical as more jurisdictions enact laws requiring businesses to accept cash, a move intended to protect vulnerable populations who may not have access to digital payment methods. New York recently became the ninth state to mandate cash acceptance, joining major cities with similar regulations. The ongoing debate has also captured the attention of a bipartisan group of federal lawmakers who have introduced legislation in both the House and Senate to establish a national rounding standard. However, these proposals have yet to advance to a floor vote, with the ongoing federal government shutdown and other pressing issues sidelining the discussion. This lack of federal action has led to increasing calls from businesses for a unified approach, as differing state laws complicate their operations across various jurisdictions. As retailers navigate this new landscape, many have opted to favor customers by rounding down cash transactions. A survey by the Retail Industry Leaders Association revealed that most retailers surveyed were rounding down to the nearest five cents, despite the financial burden it places on them. Austen Jensen, senior executive vice president of public affairs for the association, noted, “We are urging the federal government to quickly address the problem, to allow for uniform adjustments by retailers that operate in a multitude of states.” The complexities surrounding cash transactions are underscored by legal considerations. Retailers in jurisdictions requiring cash acceptance cannot charge customers paying with cash more than those using credit cards, raising concerns about potential class-action lawsuits over unfair or deceptive practices. Legal experts warn that merchants could unintentionally violate state laws, leading to hefty fines and lawsuits. In the face of these challenges, some convenience store chains like Sheetz and Kwik Trip have already implemented their own policies. Sheetz has encouraged customers to switch to cashless payments or round up their change for charitable causes, while Kwik Trip has automated its registers to round down cash transactions to the nearest nickel. Ultimately, the resolution to the penny dilemma may lie in the hands of state lawmakers, who are increasingly recognizing the need for clarity and consistency. As New York’s Democratic state Senator James Sanders Jr. noted, cash remains a vital resource for many communities, including working families and small businesses. His proposal to round down cash transactions aims to protect consumers and prevent large corporations from benefiting disproportionately from rounding practices. As states continue to weigh in on the issue, the lack of a federal standard leaves retailers and consumers in a state of uncertainty. The transition away from the penny has revealed deeper issues regarding cash transactions, consumer protection, and equitable business practices. The outcome of these discussions will not only shape retail practices but also influence the future of cash transactions in an increasingly digital economy. With more states likely to address the issue, the need for a comprehensive solution is becoming ever more urgent.