As the penny starts going extinct, how do Mass. businesses round prices right?

May 7, 2026 - 11:58

As the penny gradually fades from everyday use, businesses across Massachusetts are facing a new reality: how to handle cash transactions without the one-cent coin. The Healey administration has stepped in to clarify the legal landscape, offering guidance to both retailers and shoppers as the shift toward rounding takes hold.

The core issue is simple. With fewer pennies in circulation, cash payments often end in odd amounts that are hard to make exact change for. To solve this, many stores are adopting a rounding system. Under this approach, the total of a cash purchase is rounded either up or down to the nearest five-cent increment. For example, a $10.02 total would round down to $10.00, while a $10.03 total would round up to $10.05. The goal is to keep things fair and efficient without shortchanging either side.

State officials have stressed that rounding is voluntary and must be applied consistently. Businesses cannot cherry-pick when to round; if they adopt the practice, it must apply to all cash transactions. Importantly, the rule only affects cash payments. Debit cards, credit cards, and digital wallets still charge the exact amount, so the penny lives on in the digital world.

For consumers, the change is subtle but noticeable. Some worry about being overcharged on small purchases, but state guidelines require that rounding be neutral over time, meaning the ups and downs should balance out. Local retailers are posting signs at registers to explain the policy, and so far, most customers seem to accept it as a practical solution to a shrinking coin supply.

The U.S. Mint has been producing fewer pennies for years, citing rising production costs and declining demand. While the coin is not officially dead yet, Massachusetts is preparing for a future where the humble penny may no longer jingle in pockets or pile up in jars. For now, the state's message is clear: round responsibly.