WASHINGTON—America’s Credit Unions is urging House leaders to support H.R. 3074, the bipartisan Common Cents Act, saying the legislation would provide a national framework for cash transaction rounding as the United States phases out penny production.
In a July 13 letter to House Speaker Mike Johnson, R-La., and House Minority Leader Hakeem Jeffries, D-N.Y., America’s Credit Unions said the legislation would address operational challenges facing financial institutions as penny supplies decline and inventories at Federal Reserve distribution sites shrink.
According to America’s Credit Unions, the bill would establish a nationwide standard for rounding cash transactions to the nearest five cents. Under the proposal, cash purchases ending in 1, 2, 6 or 7 cents would be rounded down, while those ending in 3, 4, 8 or 9 cents would be rounded up. Transactions ending in 0 or 5 cents would remain unchanged.
Cash Only
America’s Credit Unions said the legislation would apply only to cash transactions. Electronic payments, including debit and credit card purchases, checks and electronic funds transfers, would continue to be charged the exact purchase amount.
The trade group said the proposal would help reduce disruptions caused by coin shortages, lower cash-handling costs for businesses and simplify cash transactions for consumers while preserving the use of cash.
America’s Credit Unions also said the bill would provide greater legal certainty by establishing a consistent federal standard for cash rounding while recognizing the authority of state and Tribal governments in areas not specifically addressed by the legislation.
‘Particularly Beneficial’
According to the organization, a uniform national framework would be particularly beneficial for credit unions and merchants operating across multiple states by reducing compliance uncertainty during the transition away from penny production.
The organization further noted that the legislation would require the Federal Reserve Board to develop a strategic plan and provide periodic reports on coin terminal operations and the stability of the nation’s coin distribution system. America’s Credit Unions said those provisions would improve coordination among the agencies and organizations involved in coin distribution and help ensure an orderly transition as penny production comes to an end.
America’s Credit Unions said it supports the updated bipartisan compromise language in H.R. 3074 and urged House leadership to advance the measure.
