Cash transaction rounding

(a) In general Any person, including a financial institution, selling goods or services in a cash transaction or entering into any other transaction that results in a payment or transfer of cash between the parties to the transaction may, if exact change cannot be provided at that time of such transaction, round the covered amount in the following manner: (1) Rounding down Except as provided in paragraph (2)(B), in any case in which the covered amount ends with 1 cent, 2 cents, 6 cents, or 7 cents as the final digit, the amount of cents in the sum may be rounded down to the nearest amount divisible by 5 for any person seeking to make payment with cash. (2) Rounding up (A) In general In any case in which the covered amount ends with 3 cents, 4 cents, 8 cents, or 9 cents as the final digit, the amount of cents in the sum may be rounded up to the nearest amount divisible by 5 for any person seeking to make payment with cash. (B) Small transactions In any case in which the covered amount totals $0.01 or $0.02, such amount may be rounded up to $.05 for any person seeking to make payment with cash. (b) Additional authority To round With respect to a person, including a financial institution, conducting a cash transaction with a customer of the person, the amount of cents in the sum of the transaction may be rounded, if such rounding is in favor of the customer, as follows: (1) Up to the nearest amount divisible by 5, if the person is paying the customer in cash. (2) Down to the nearest amount divisible by 5, if the customer is paying the person in cash. (c) Employer payments to employees (1) In general With respect to an employer providing a cash payment to an employee in an amount that is not divisible by 5 cents, if the employer chooses to round the amount of cents in such payment, the employer shall round the amount of cents in such payment up to the nearest amount divisible by 5 cents. (2) No rounding requirement Nothing in this subsection may be construed to require rounding by an employer described in paragraph (1) who provides a cash payment to an employee in an exact amount. (d) Application Subsections (a), (b), and (c) shall not apply to any transaction for which payment is made by any demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other like instrument or method. (e) Rule of construction Nothing in this Act may be construed to require any person to round a payment as described in subsections (a) or (b). (f) Covered amount defined In this section, the term covered amount means— (1) the total transaction amount, including taxes; or (2) in the case of a person selling goods or services in a cash transaction or entering into any other transaction that results in a payment or transfer of cash between the parties to the transaction, the amount of change due to the customer if the customer provides a cash payment that exceeds the total transaction amount, including taxes.