WA Moves to Simplify Cash Payments Without Pennies

Washington lawmakers are considering legislation to create a uniform approach for cash transactions following the federal government’s decision to stop producing pennies.

The bills, moving through the state House and Senate, would direct retailers to round cash purchases to the nearest five cents. Credit and debit card payments would not be affected.

Under the proposed rules, totals ending in 1, 2, 6, or 7 cents would be rounded down. Totals ending in 3, 4, 8, or 9 cents would be rounded up. Amounts ending in zero or 5 would remain unchanged. Retailers would also have the option to accept exact amounts if customers want to pay with pennies.

Supporters say the legislation provides much-needed guidance for businesses, helping them avoid confusion at the register and potential legal challenges. The bills clarify that rounding would not affect taxes or fees, which would still be calculated based on the pre-rounded purchase price.

Retailers have long requested statewide rules to ensure consistency and protect against consumer complaints or lawsuits. Grocers and convenience store owners said the issue was especially noticeable during busy holiday periods, when giving exact change could slow operations and frustrate customers.

The U.S. Mint stopped making pennies after the cost to produce each coin climbed to nearly 3.69 cents, making continued production uneconomical. While pennies remain in circulation, officials say the new rounding rules would make cash transactions simpler for both businesses and consumers.

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