House Passes Common Cents Act to Help Phase Out Penny

Because of the phaseout, however, some businesses and consumers raised concern over increased costs related to rounding transactions to the nearest nickel. 

The National Restaurant Association argues that many restaurant operators, out of fear of possible litigation, have opted to round down costs to the nearest nickel when exact change wasn’t available. A prolonged period of rounding down could cost restaurants up to $168 million yearly, the association added.

Meanwhile, the Federal Reserve Bank of Richmond projected in a July brief last year that rounding to the nearest nickel could cost U.S. consumers about $6 million annually. 

Industry groups lauded the passage of the Common Cents Act, a bipartisan effort sponsored by Reps. Robert Garcia (D, Calif.) and Lisa McClain (R, Mich.). The bill now heads to the Senate. 

“The House recognized the need for certainty to protect cash transactions, support consistency across the country, and resolve an issue that has been negatively impacting millions of businesses nationwide,” Evan Armstrong, the senior vice president of government affairs of the Retail Industry Leaders Association, said in a statement.