As pennies gradually disappear from circulation in the United States, businesses are grappling with a pressing question: how should cash transactions be handled in a world without this one-cent coin? The growing penny shortage has led to a patchwork of retailer policies, with some opting to round cash transactions either up or down. Amid this uncertainty, state lawmakers are beginning to take action, seeking to establish clear guidelines for retailers and consumers alike. The issue at hand, though it revolves around mere cents, raises significant consumer protection and legal concerns. Retailers are wary of potential lawsuits stemming from their rounding policies, while policymakers are focused on ensuring that vulnerable populations—those who rely predominantly on cash for their daily purchases—are not adversely affected. The conversation surrounding the elimination of the penny has gained momentum since former President Donald Trump proposed phasing it out due to its high production cost, estimated at around 3.7 cents per penny. This proposal came at a time when retailers and banks were already reporting widespread penny shortages, which have only intensified in the months since. In response to the growing confusion, some states have begun to take proactive measures. New York lawmakers, for instance, have introduced legislation that mirrors Canada’s rounding policy, which rounds cash transactions to the nearest five cents. Meanwhile, nonbinding guidance has been issued by officials in states like Georgia and Utah, directing businesses on how to navigate the transition away from pennies. "States do not have the luxury of waiting for the federal government," remarked Katherine Tschopp, a senior associate at MultiState, a government relations firm. The complications surrounding this issue are further exacerbated by an increasing number of jurisdictions that mandate businesses to accept cash payments. This legislation aims to protect consumers who may lack access to credit cards or electronic payment methods. New York recently became the ninth state to implement such a rule, joining a growing list of cities and states emphasizing the importance of cash transactions in today’s economy. In the absence of federal guidance, New York Democratic Assemblymember John T. McDonald III has called for states to provide clarity for both consumers and merchants. He noted that his proposed legislation, which adopts symmetrical rounding as a standard practice, has garnered bipartisan support and appears to be free of opposition from both business and consumer advocacy groups. Under this proposal, cash purchases that end in one or two cents would be rounded down, while those ending in three or four cents would be rounded up, thereby balancing the interests of both retailers and consumers. The National Conference of State Legislatures (NCSL) recently examined the penny issue and recommended symmetrical rounding as the most equitable approach. McDonald, who serves on the NCSL's State and Local Taxation Task Force, believes that this consensus is a refreshing contrast to the often divisive nature of contemporary legislative discussions. He views the penny issue as an opportunity for collaboration among diverse stakeholders. In South Dakota, state senator Tim Reed has echoed the need for lawmakers to engage with retailers and the public regarding cash rounding policies. He acknowledged the potential for “strategic pricing,” where retailers might adjust prices to benefit from rounding, but reassured consumers that such practices would likely balance out over time. Reed emphasized the importance of fostering trust and understanding among all parties involved. Meanwhile, New York state senator James Sanders Jr. has voiced his support for maintaining cash as a viable payment option, particularly for those who may be marginalized by electronic payment systems. He advocates for rounding down in cash transactions to protect consumers from potential overcharges, especially in light of the financial implications for large corporations. The U.S. Mint's final production run of the penny occurred in November, and by that time, many distribution points across the country were already facing shortages. Reports indicated that over 100 of the government’s 165 coin distribution sites were out of pennies, leading to operational difficulties for retailers. A survey conducted by the Retail Industry Leaders Association found that many chains were already adopting cash rounding policies that favored consumers, often rounding transactions down to the nearest five cents to alleviate financial burdens associated with cash transactions. Despite these initiatives at the state level, the absence of a federal standard has left many retailers uncertain about how to proceed. Some chains, like Sheetz, have encouraged customers to switch to cashless payments or to round up transactions for charitable contributions, while others, such as Kwik Trip, have implemented automatic rounding policies that favor customers. Without a uniform approach, businesses face the challenge of navigating diverse and sometimes conflicting regulations across multiple states. As the conversation surrounding cash transactions continues to evolve, industry groups like the American Bankers Association and the Retail Industry Leaders Association are advocating for a cohesive federal solution. They argue that a nationwide policy would simplify compliance for retailers, who currently face the burden of varying state regulations. With lawmakers preoccupied with pressing issues such as healthcare and government funding, it remains to be seen when federal guidance will emerge. In summary, as the United States transitions toward a penniless future, the question of how to manage cash transactions looms large. States are beginning to take the initiative, but without federal standards, the landscape remains uncertain for both businesses and consumers. With various approaches being considered, the potential impact on everyday transactions and consumer trust in the marketplace is a critical concern for all stakeholders involved.