Analysis / Opinion – In a scene that echoes the comical greed of Richard Pryor’s character in Superman III, American retailers are quietly positioning themselves to benefit from the rounding of your change. Not by stealing half-cents into a secret bank account, but by tweaking prices so that, when the cash register closes, the rounding always favors them. With the penny officially retired, their little profits are set to add up fast.
Yes, the coin that has jingled in your couch cushions for generations is gone. On November 12, 2025, the United States Mint struck the final circulating penny, ending a 232-year run. The move, ordered by the Brandon Beach-led Treasury, was justified by rising production costs. It costs 3.69 cents to mint a one-cent coin that is worth only a cent, and has dwindling practical use.
That penny may be gone, but rounding rules remain. Pennies are still legal tender, but with no more being minted, their circulation will shrink. Many economists and officials expect cash transactions to be rounded to the nearest nickel when pennies disappear from everyday use.
For retailers, that isn’t a bug. It’s an opportunity.
How Pricing Will Tilt the Rounding to Retailers’ Favor
With pennies gone, the rounding of cash totals becomes inevitable. But the outcome, whether customers lose change or not, depends on how retailers price items. And with modern tools, they can tilt it heavily in their favor.
Using local tax rates (for example, a hypothetical 8.25 %) and simple rounding rules, pricing strategists, now aided by artificial intelligence, can adjust individual item prices down to the cent so that, after tax and rounding, the final cash-register total ends in .03 or .08 (or at worst .04 or .09). Under standard rounding to the nearest nickel, those endings give retailers a gain of one or two cents. Over thousands or millions of transactions, those cents become real money.
For instance:
- A product at $1.92 before tax ends up as $2.08 total — rounding up to $2.10, giving the retailer 2 extra cents while the customer sees a lower sticker price.
- A $9.96 item produces a post-tax total that rounds up, unlike $9.99, which might round down.
- A clean $20 price tag may shift to $19.98 — a small tweak that creates a favorable rounding outcome.
Retailers who price each item carefully — rather than basing price on “market norms” like .99 or .95 — can systematically harvest these rounding gains. It’s the arithmetic equivalent of payroll for pennies, just like how Gus Gorman was shocked to discover his fortune in Superman III.
Who Gains — And Who Loses
This pricing strategy is most lucrative in contexts with frequent low-item cash purchases: convenience stores, gas stations, coffee shops, small retail outlets. In those environments, the rounding on each sale matters. Large grocery carts or mixed baskets tend to average out, though retailers still benefit overall from any skew.
Digital payments — credit cards, mobile wallets, and contactless transactions are unaffected. Totals still settle to the exact cent. So the benefit accrues only when the customer pays with cash. But given how many transactions in the U.S. still involve cash, especially among lower- and middle-income shoppers, the strategy still has broad potential.
Legally, there’s nothing wrong with the approach. The government stopped making pennies because it cost more to produce them than their face value. They left the rounding rules to states and businesses. Still, some retailers and industry groups worry about the fairness of the shift. As reported, many businesses were caught off guard when penny shipments abruptly stopped, with no central guidance on rounding policies.
That means even well-meaning merchants might adopt rounding-up strategies by default, simply because that’s what the pricing tools they buy suggest.
The Penny’s End — And the Subtle Rise of the Rounding Dividend
Yes, the penny is gone. Production stopped. The smallest unit of U.S. currency no longer emerges from Mint presses. The rounding rules may seem harmless, perhaps even trivial. But with the precision of modern pricing analytics and the institutional muscle of retail chains, that triviality becomes systematic.
What the consumer loses is too small to notice. A penny here, two cents there. But over time, it accumulates. Much like the fictional windfall of Gus Gorman, the rounding profits will build quietly until they become significant, collected not by thieves in a basement, but by retailers behind bright fluorescent lights and bar-code scanners.
The penny’s death may be an act of fiscal efficiency. But the rounding dividend is the beginning of a price-structure redesign that advantages those who control the register.