Without Pennies, Should Retailers Round Up or Down? States Offer Their 2 Cents

Financial Services attorney Christopher Phillips was quoted in a Stateline article examining the growing legal and operational uncertainty for businesses following the government's decision to cease producing pennies and the increasing need to round cash transactions. He described how retailers, banks and payment system stakeholders are seeking federal direction on whether to round up or down, while states begin issuing guidance or proposing legislation to fill the gap. Mr. Phillips also highlighted consumer protection and litigation risks created by a patchwork of approaches, especially in jurisdictions with cash-acceptance laws and rules that prohibit charging cash-paying customers more, raising the prospect of fines and class action claims tied to rounding policies.

"[States are] obviously concerned about it and wanting a federal fix," he said. "The government fairly abruptly decided they weren't going to mint any more pennies, and these shortages of pennies spread fairly quickly across the country."

READ: Without Pennies, Should Retailers Round Up or Down? States Offer Their 2 Cents