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McDonald’s Begins Rounding Cash Totals as Penny Shortages Spread

Absent federal guidance, merchants face legal uncertainty over cash rounding.

A sign in a Kwik Trip store shows the store will no longer be using pennies to give change, on Oct. 23, 2025, in Yorkville, Wis. (AP Photo/Morry Gash)
A sign in a Kwik Trip store shows the store will no longer be using pennies to give change, on Oct. 23, 2025, in Yorkville, Wis. (AP Photo/Morry Gash)
Image
A sign in a Kwik Trip store shows the store will no longer be using pennies to give change, on Oct. 23, 2025, in Yorkville, Wis. (AP Photo/Morry Gash)

Overview

  • McDonald’s confirmed some U.S. locations are rounding cash transactions to the nearest five cents when pennies are unavailable, with card and app payments unaffected.
  • The Treasury halted penny production after costs exceeded value, with the Mint spending about 3.7 cents per penny and the department projecting roughly $56 million in annual savings.
  • Banks report rationing pennies as localized shortages deepen, with roughly one-third of Federal Reserve coin terminals curtailing penny deposits and withdrawals, limiting redistribution.
  • Retailers say inconsistent state pricing laws make rounding up risky, prompting many to round down and absorb losses; Kwik Trip estimates about $3 million in costs, and chains like Sheetz and Giant Eagle are running penny collection promotions.
  • Industry groups are urging Congress to pass the Common Cents Act to standardize cash rounding to the nearest nickel, while billions of pennies remain in circulation but are not reaching deficit areas efficiently.