The Assembly Financial Institutions and Insurance Committee weighs a bill Thursday allowing businesses to round cash transactions to the nearest nickel, after the penny was phased out of production last year.
Photo credit: Shohini Mitra/NJ State House News Service.

By Shohini Mitra
NJ State House News Service

TRENTON, N.J. – With the looming demise of the penny, lawmakers Thursday moved a bill prescribing how businesses could round cash transactions to the nearest nickel.

“I think this is going to do away with one of my favorite expressions, which is ‘Watch your pennies and your dollars will fall into place,’” joked Assembly Member Dan Hutchinson, a Democrat from Gloucester, during the Assembly Financial Institutions and Insurance Committee hearing.

The U.S. Mint stopped making pennies in November 2025, but old copper-colored coins remain in circulation.

A5233, sponsored by Democratic Assembly Member Roy Freiman from Hillsborough, says that cash transaction rounding is optional for businesses. 

However, if business owners choose to round cash purchases they must round to the nearest nickel. Transaction totals ending in 1 or 2 cents, or 6 or 7 cents are automatically rounded down to the nearest nickel. For example, a $5.11 cash purchase would be rounded to $5.10.Cash sales ending in 3 or 4 cents, or 8 or 9 cents, would be rounded up: a cash purchase of $10.58 would be rounded to $11.60.

These stipulations apply to cash transactions only. Credit or debit cards, checks, wire transfers and any other form of non-physical payment will not be rounded, according to the measure.

The legislation grants flexibility with regards to charitable donations, as long as the customer consents to the additional charge. In other words, consumers are able to donate the difference to round-up charity programs.

The bill also includes penalties for violations. Businesses would be fined $1,000 for the first offense, and $2,500 for the second violation. Subsequent violations will face $5,000 penalties each.

The legislation moved 12-0, with Assembly Member Robert Auth, a Republican from Old Tappan, abstaining without comment.

An identical measure moved unanimously out of the Senate Commerce Committee in May.

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Shohini Mitra is a senior journalism and media studies student pursuing a minor in digital communication, information, and media at Rutgers University.