Here's what the Common Cents Act means for businesses, consumers
New law aims to address how businesses and consumers should transact amid the phase-out of the penny.
Updated on: July 15, 2026 / 12:20 PM EDT / CBS News
The Common Cents Act, a response to the phase-out of the penny that lets businesses round cash transactions to the nearest nickel, was passed by the House of Representatives on Tuesday and now moves to the Senate for consideration.
It would create rounding guidelines for businesses and consumers to lean on for cash transactions when they do not have exact change on hand. Currently, establishments are vulnerable to litigation if they fail to provide customers with exact change, even when they round up in a patron's favor.
Business advocacy groups praised its passage on Tuesday. The National Restaurant Association called it "a win for restaurant operators who have been contending with the phase out of the penny."
"When a customer pays in cash and a register doesn't have a penny available to give exact change, it can create a legal liability for businesses," National Restaurant Association chief advocacy officer Sean Kennedy told CBS News.
The Common Cents Act provides clear guidance on which businesses, banks and consumers can rely when transacting in cash. It directs the Treasury to stop minting pennies and calls for cash transactions to be rounded up or down to the nearest five cents. Pennies will still retain their value under the act.