Oregon Legislature Advances Legislation Regulating How Stores Round Transactions an Economy Without Pennies

Americans may soon find themselves paying a few cents more, or perhaps less, at the checkout as several states are working to pass legislation that would clarify how businesses should round transactions now that the penny is officially being phased out.Last year, President Trump ordered the Treasury Department to stop minting pennies. By November, retailers throughout America said they were experiencing shortages of pennies and having to round cash transactions up or down. Several retail organizations have called on Congress to issue new guidelines on how stores should handle the transactions. On Thursday, Oregon’s Senate voted 26-2 to pass House Bill 4178, which clarifies how transactions should be rounded. Under the legislation, cash transactions that end in 1, 2, 6, or 7 cents would be rounded down. Transactions that end in 3, 4, 8, or 9 cents would be rounded up — in line with recommendations from the Treasury Department. The transactions would be rounded up or down to the nearest nickel. The rounding rules would not apply to online transactions or transactions only involving a debit or credit card. That bill is now headed to Governor Tina Hotek’s desk. But Oregon is not alone in trying to address the question of how cash transactions should be rounded, as lawmakers in more than 20 other states are considering legislation to create uniformity within their states. Since the last penny was minted, retailers have generally been rounding transactions down. While customers may be pleased by saving a few cents, business owners have been raising concerns that lowering prices will cost them money in the long run. Businesses have also expressed concerns that, without legislation, if they choose to round prices up, they could be accused of cheating customers and possibly face legal action. There are also concerns that if retailers decide to round up, they could face legal troubles from states that require businesses to accept cash transactions. Many jurisdictions that have such laws prevent businesses from charging consumers more if they pay with cash.In a statement, the Retail Industry Leaders Association said that “retailers are prepared to adopt rounding practices similar to those used in other countries that have eliminated one-cent coins.”“However, this approach requires consistent national guidance to ensure uniformity and compliance,” the group said. “It is also critical to implement a national preemption standard to avoid a patchwork of local and state laws that will confuse consumers and impact business operations.”The Treasury Department and other organizations have advocated for “symmetrical rounding,” such as the system proposed by Oregon. The Treasury Department says that the system will ensure that “final transaction prices will be rounded down just as often as they will be rounded up, so there should be no overall effect on consumer prices.”The American Bankers Association is urging Congress to pass a law that would determine how businesses should round pennies.

Oregon Legislature Advances Legislation Regulating How Stores Round Transactions an Economy Without Pennies

Oregon Legislature Advances Legislation Regulating How Stores Round Transactions an Economy Without Pennies

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