20 necsema M2M The Penny Problem: Making Sense of the Change The federal government has stopped producing pennies, creating new challenges for stores. Pennies are still legal tender, but they are becoming rare; store leaders must choose to lose a few cents on transactions or manage confusing, local checkout practices. For companies with stores in multiple states, the issue gets complicated quickly. Stores need a clear company-wide plan that prevents mistakes while keeping checkout lines moving fast. National Cash Rounding Legislation In the absence of a federal rounding standard, states began defining their own policies. As of July 23, 2026, twenty states have enacted cash rounding laws. At the federal level, the House passed HR 3074, the Common Cents Act, by voice vote on July 14, 2026; the bill now moves to the Senate. [commoncentsact.com] National Trends • The “Pre-Tax Firewall”: Nearly all state laws and Department of Revenue guidance maps require POS systems to calculate exact sales tax before applying cash rounding to the grand total. • Permissive vs. Mandatory: Arizona is currently the only state with a mandatory rounding framework; all other state statutes make cash rounding permissive/optional for merchants. • Non-Cash Isolation: Across every state jurisdiction, rounding applies strictly to physical cash tenders – electronic, credit/debit card, EBT, and gift card transactions remain strictly bound to the exact cent. The Real Problem: Federal Policy, State-by-State Execution Retailers are not simply deciding whether to round up or down. They’re being made to answer a much harder question: How do we operate consistently when the federal cash supply has changed, but the rules for handling that change are defined differently by state? That distinction matters. For retailers, the challenge is not simply tracking legislation. It is turning a changing, state-by-state policy environment into consistent execution at the register, in the back office, and across the cash lifecycle. Why This Gets Complicated for Multi-State Retailers A multi-state retailer may need to support different cash-handling rules across hundreds of locations. In addition, with the rise of electronic payments, some states have passed laws requiring the acceptance of cash as a form of payment. Current State Specific Legislation Mandating Retailers Must Accept Cash as Payment: For NECSEMA member retailers, this matrix outlines the status of regulations: Key Business Risks & System Problems 1. Register Systems and Tax Rules The biggest risk is at the register. Stores can’t turn on a single, automatic rounding rule everywhere because states handle tax money differently. • Order of Math: Cash register software must follow a strict, local setup: • Keep Cards Separate: Register systems must strictly separate cash payments from non-cash payments. 2. Banking, Safe Automation, and Accounting Errors Without company rules, the difference between what a register says and the physical cash collected creates accounting errors. • Smart Safes: Automated money machines and smart safes must be updated so they expect small rounding differences. If accounting software does not track these gains and losses by store and register, the missing cents look like stolen money or employee errors. • Making Change: Stores must work with their banks to order more nickels, dimes, and quarters. As pennies disappear, stores need a different mix so they do not run out of change. 3. High-Risk Situations: Split Payments and Special Services
