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Bill

SB 893

Business Regulation - Rounding Cash Transactions - Authorization

2026 Regular Session Introduced by Dawn Gile

Maryland allows retailers to round cash transactions to nearest five cents, eliminating penny circulation in point-of-sale exchanges.

Approved by the Governor - Chapter 516
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WeVote Research Nonpartisan
Bill Summary · SB 893

Legislative bill overview

SB 893 authorizes businesses in Maryland to round cash transactions to the nearest five cents, eliminating the need to handle pennies in cash-only purchases. The bill passed both chambers with amendments and represents a practical response to the rising costs of penny production and circulation.

Why is this important

As the U.S. penny costs more to produce than its face value, several states and countries have implemented rounding policies to reduce cash handling inefficiencies. This bill could lower operational costs for retailers while addressing a long-standing economic debate about penny viability, though it primarily affects customers who pay exclusively in cash—a shrinking demographic.

Potential points of contention

  • Rounding direction and consumer impact: Clarification needed on whether rounding occurs up or down, which could systematically favor or disadvantage consumers across multiple transactions
  • Small business compliance: Concerns about implementation costs for independent retailers, particularly those with older point-of-sale systems that may need updates
  • Effect on unbanked populations: Cash-dependent individuals and those without bank accounts may face cumulative financial impacts from consistent rounding over time

Compiled from official sources — confirm details with the bill’s official record.

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