Thanks for inviting us into the conversation, Rani. For those unfamiliar with us, Centsless is building cash rounding compliance infrastructure to help merchants and their POS providers navigate the post penny economy.
Over the past eight months, we have been researching this transition at both the legislative and transaction level, including enacted state laws, agency guidance, federal proposals, and the operational edge cases that appear once those rules reach the register.
One of the biggest misconceptions is that cash rounding is simply a matter of programming a register to round to the nearest nickel. The harder question is determining which rule applies to that transaction in the first place.
States are taking different approaches to when rounding is permitted or required, how the adjustment is calculated, and which transactions are affected. Local requirements can add another layer.
Then there is the transaction architecture itself. Sales tax still needs to be calculated to the exact cent before rounding. Noncash tenders remain exact. SNAP and EBT protections need to be preserved. Split tenders, cash tip payouts, refunds, receipts, reconciliation, and audit records all introduce additional considerations.
That is why we are building Centsless as a jurisdiction aware compliance layer that can sit within the transaction flow, rather than treating this as simply a rounding button at the register.
Killing the penny may have been the easy part. Translating everything that follows into consistent, auditable transactions across thousands of locations is where the larger challenge begins.
We appreciate you bringing more attention to it, Rani. This is exactly the conversation retailers, policymakers, and payment technology providers need to be having.
It’s bizarre how loosie goosie it all is. I was thinking about this yesterday, but in the context of credit cards: why aren’t we rounding for credit card transactions now too? Seems like there needs to be some degree of consistency. But that’s probably asking for too much
Loosie goosie is the perfect term for what this is / isn’t! And yes…credit cards too - it seems so inconsistent. That it’s time to game the currency system. Not that I have time or interest — but someone out there does!
I'm spending the pennies I have when I buy coffee/fountain drinks, two of the few times I pay with cash. I am also telling cashiers to keep the pennies if I am given them as change, even though I do feel like that is rewarding The Man (why does a national chain need my noblesse oblige?)
That damn man. That's why I have a hard time tipping for my $10 corporate latte.
I think I'm going to start hoarding my pennies. Maybe nickels too. Although who am I kidding? I had to use a credit card to get a 25 cent water at Costco. And couldn't get it to work.
Thanks for inviting us into the conversation, Rani. For those unfamiliar with us, Centsless is building cash rounding compliance infrastructure to help merchants and their POS providers navigate the post penny economy.
Over the past eight months, we have been researching this transition at both the legislative and transaction level, including enacted state laws, agency guidance, federal proposals, and the operational edge cases that appear once those rules reach the register.
One of the biggest misconceptions is that cash rounding is simply a matter of programming a register to round to the nearest nickel. The harder question is determining which rule applies to that transaction in the first place.
States are taking different approaches to when rounding is permitted or required, how the adjustment is calculated, and which transactions are affected. Local requirements can add another layer.
Then there is the transaction architecture itself. Sales tax still needs to be calculated to the exact cent before rounding. Noncash tenders remain exact. SNAP and EBT protections need to be preserved. Split tenders, cash tip payouts, refunds, receipts, reconciliation, and audit records all introduce additional considerations.
That is why we are building Centsless as a jurisdiction aware compliance layer that can sit within the transaction flow, rather than treating this as simply a rounding button at the register.
Killing the penny may have been the easy part. Translating everything that follows into consistent, auditable transactions across thousands of locations is where the larger challenge begins.
We appreciate you bringing more attention to it, Rani. This is exactly the conversation retailers, policymakers, and payment technology providers need to be having.
More on our work and live legislative tracking: www.centsless.org
Kyle -- welcome to Retail Therapy!
Thank you for the incredible education you've provided. Know I appreciate your work to bring transparency and technology to the conversation.
Didn't realize there were votes held on how to handle the rounding. Too funny.
Yet there is no consensus and everyone gets to decide themselves! Excel doesn’t need a vote - it just uses number logic. Why can’t that work?!
It’s bizarre how loosie goosie it all is. I was thinking about this yesterday, but in the context of credit cards: why aren’t we rounding for credit card transactions now too? Seems like there needs to be some degree of consistency. But that’s probably asking for too much
Loosie goosie is the perfect term for what this is / isn’t! And yes…credit cards too - it seems so inconsistent. That it’s time to game the currency system. Not that I have time or interest — but someone out there does!
I'm spending the pennies I have when I buy coffee/fountain drinks, two of the few times I pay with cash. I am also telling cashiers to keep the pennies if I am given them as change, even though I do feel like that is rewarding The Man (why does a national chain need my noblesse oblige?)
That damn man. That's why I have a hard time tipping for my $10 corporate latte.
I think I'm going to start hoarding my pennies. Maybe nickels too. Although who am I kidding? I had to use a credit card to get a 25 cent water at Costco. And couldn't get it to work.