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Without pennies, should retailers round up or down? States offer their 2 cents

Pennies lay in a casket during a mock funeral for the penny, which was discontinued earlier this year, in front of the Lincoln Memorial in Washington. As pennies vanish from the American landscape, states are beginning to weigh in on how retailers should respond. (AP Photo/Julia Demaree Nikhinson)
Pennies lay in a casket during a mock funeral for the penny, which was discontinued earlier this year, in front of the Lincoln Memorial in Washington. As pennies vanish from the American landscape, states are beginning to weigh in on how retailers should respond. (AP Photo/Julia Demaree Nikhinson) Pennies lay in a casket during a mock funeral for the penny, which was discontinued earlier this year, in front of the Lincoln Memorial in Washington. As pennies vanish from the American landscape, states are beginning to weigh in on how retailers should respond. (AP Photo/Julia Demaree Nikhinson)

By Kevin Hardy / Stateline 8 min read

As pennies vanish from the American landscape, many businesses are clamoring for federal guidance on how to handle cash transactions in a penniless world.

Should retailers round up or down? Should they round in favor of the customer? Or in favor of the business?

So far, calls for federal direction have gone unanswered. Some businesses are setting their own policies, but states are now beginning to act amid growing uncertainty.

While the question revolves around only a few cents per transaction, it does raise important consumer protection and legal questions for states to consider. Retailers must weigh threats of potential lawsuits, while policymakers worry about protecting the most vulnerable consumers who rely on cash for everyday purchases.

President Donald Trump in February moved to eliminate the penny from U.S. pocketbooks, citing the high cost of minting them — about 3.7 cents per penny. But even before the coin’s final production run last month, U.S. retailers and banks were reporting widespread penny shortages.