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NC

Bill

HB 545

Legal tender; authorizing the rounding of in-person cash transactions to the nearest five cents

2026 Regular Session Introduced by Norman Crow

Alabama bill permits rounding cash transactions to nearest five cents, eliminating penny use in in-person commerce.

Enacted
#consumerprotection
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WeVote Research Nonpartisan
Bill Summary · HB 545

Legislative bill overview

HB 545 would allow businesses to round cash transactions up or down to the nearest five cents in in-person payments. This addresses the practical problem that pennies and nickels are becoming less common in circulation, making exact cash transactions difficult. The bill would apply only to physical cash exchanges, not card or electronic payments.

Why is this important

As pennies lose value and become costly to produce, many countries have already eliminated or reduced their use in cash transactions. This bill reflects a real economic trend where cash handling becomes inefficient when small denominations remain in use. However, it also raises questions about consumer protection and whether rounding consistently favors businesses or consumers.

Potential points of contention

  • Consumer protection concerns: Systematic rounding could disadvantage consumers if businesses consistently round up on purchases but down on change, creating a net loss over time
  • Implementation ambiguity: The bill doesn't specify rules for when to round up versus down, leaving room for inconsistent or unfair practices across businesses
  • Impact on low-income shoppers: People who rely heavily on cash and make frequent small purchases could accumulate losses from cumulative rounding
  • Pennies and nickels phase-out questions: Whether this is a step toward eliminating small denominations entirely, which some view as inflationary

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

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