The news
The Senate passed the Common Cents Act on the night of Monday, September 28, sending President Donald Trump a bill that formally ends penny production and gives merchants a federal framework for rounding cash sales to the nearest nickel, Payments Dive reported.
The Senate approved the bill by unanimous consent, according to the American Bankers Association's Banking Journal. The measure, H.R. 10167, lets cash transactions be rounded up or down to the nearest 5 cents when exact change cannot be provided. It applies only to cash. Payments by card, check and other non-cash methods are exempt, according to the ABA.
The bill also requires the Treasury Department to give Congress 60 days' notice before discontinuing any circulating coin, the ABA reported, and it lets the Treasury explore cheaper metal compositions for the nickel. Payments Dive reported that the bill directs Treasury to look at using zinc instead of copper in the 5-cent coin, and that pennies will still be produced as collectible coins.
The bill took an unusual path. Payments Dive reported that the Senate first passed its version in August with an amendment from Sen. Elizabeth Warren (D-Mass.) on notifying Congress before a coin is discontinued, which forced a second House vote in September and a second Senate vote on September 28. The House bill was sponsored by Reps. Lisa McClain (R-Mich.) and Robert Garcia (D-Calif.); the Senate version by Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.).
Retail and banking groups backed the bill. NACS, the convenience store trade association, said Trump is expected to sign it in the coming weeks, according to Payments Dive. The National Retail Federation urged him to sign it without delay, and the National Grocers Association and the ABA also welcomed its passage. "The Common Cents Act provides the clarity retailers need," said Stephanie Johnson of the National Grocers Association.
The numbers
- Rounding increment for cash sales
- Nearest 5 cents
- Required notice before discontinuing a coin
- 60 days (per ABA)
- Treasury's estimated annual savings from ending penny production
- $56 million (per Payments Dive)
- Senate vote method
- Unanimous consent (per ABA)
Why CEOs should care
For retail CFOs and store operations leaders, the bill turns an informal practice into a federal rule set. The National Grocers Association says the end of penny production created nationwide shortages, and merchants have sought federal guidance on how to handle cash. Once the law is signed, check that your point-of-sale software can round only cash tenders, round in both directions, and show the adjustment on the receipt. Ask your POS vendor when an update will ship and how the rounding line will flow into your general ledger and sales tax reports.
For payments and fintech leaders, the direct impact is narrow because card and electronic payments are exempt. But mixed-tender transactions, such as part cash and part card, and cash-back at the register will need clear rules in software. Payment processors and POS providers that serve small merchants should publish guidance and defaults before the busy holiday season, rather than leaving each store to configure rounding on its own.
For boards and finance chiefs at cash-heavy businesses, the penny-by-penny effect per sale is small, but consistency matters for audits and customer trust. Document your rounding policy, train staff, and monitor whether rounding nets out over time as the up-or-down design intends.
The bigger picture
The legislation catches the law up with a decision already made. Payments Dive reported that the final batch of pennies was struck in November 2025, nine months after Trump directed the Treasury to stop making them because of their cost, and that the Treasury estimated $56 million a year in savings. The National Grocers Association said the resulting shortages prompted the legislation.
The bill also opens the door to changing the nickel, the next-smallest coin, by exploring cheaper metals. That could matter for coin-handling equipment makers and cash logistics firms if the Treasury changes the coin's composition.
What’s next
The bill awaits President Trump's signature. Watch for the signing date, any Treasury guidance on how and when rounding rules take effect, and whether the Treasury moves ahead with a study of a zinc-based nickel. Retailers should use the gap between passage and signing to test POS updates and prepare staff.
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