Retailers across the United States are facing a growing penny shortage after the Treasury ended the production of 1-cent coins. As remaining penny supplies dwindle, stores are adopting new policies for cash transactions—often rounding change up or down to the nearest nickel. This shift is causing confusion among customers and headaches for retailers who must navigate a patchwork of state and local cash handling laws.

The biggest challenge lies in compliance, especially in states where rounding or cash discrimination is strictly regulated. Retailers are wary of potential legal consequences if rounding practices result in cash-paying customers being unfairly charged. SNAP recipients are particularly vulnerable: under current rules, stores cannot overcharge shoppers using food assistance programs, forcing many companies to round all cash and SNAP transactions down to avoid breaking the law. However, gray areas remain, and not every retailer is equipped to handle the change fairly.

The retail industry is urging lawmakers to act quickly. Proposals like the Common Cents Act aim to establish a consistent national rounding standard, but until federal law is passed, confusion and complaints are likely to continue. For now, shoppers are advised to carry small change or switch to digital payment methods to minimize headaches at the register—especially those using SNAP benefits.

This ‘penny pinch’ moment is proving to be a real stress test for stores and customers, prompting a bigger debate: Should the penny be brought back, and what’s the fairest way to handle small change going forward? Share your opinion below!