Pennies past their prime? Utah consumer protection suggests businesses round their cents

SALT LAKE CITY — Pennies are apparently becoming a coin of the past, as businesses are considering rounding cash-only purchases to the nearest five cents, after the Utah Department of Commerce’s Division of Consumer Protection suggested they should on Monday.

The American Bankers Association estimates there are 250 billion pennies remaining in circulation following President Donald Trump’s directive to stop minting the single-cent coin. According to the ABA, while pennies are not disappearing overnight, banks and retailers are relying solely on recycled coins.

The division reported that the U.S. Mint stopped circulating pennies in August. On Monday, the division claimed the circulation of pennies is “slowing down.”

That’s why the division published an advisory letter with recommendations for businesses dealing with cash purchases. Purchases involving credit or debit cards are not affected:

While businesses can choose their rounding methodology, we recommend the following method to ensure fairness and consistency:

$0.01 or $0.02 round down to $0.00.
$0.03 or $0.04 round up to $0.05.
$0.06 or $0.07 round down to $0.05.
$0.08 or $0.09 round up to $0.10.

Utah businesses are not required to follow the recommendations. However, they will be required to “clearly and conspicuously” display their rounding methods for consumers to view within the business.

While the changes may help save a few cents here and there, the division warns that rounding must occur after taxes have been calculated on the actual transaction amount. 

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