McDonald’s Begins Cash Rounding Amid U.S. Penny Shortage

McDonald’s is the latest business adapting to the ongoing U.S. penny shortage. 

After the Mint produced its final batch of pennies earlier this year, retailers across the country have started running out of one-cent coins.

Now, certain McDonald’s locations are rounding cash transactions to the nearest five cents when customers don’t have exact change. 

The company says this is a temporary adjustment, affecting cash payments only.

The U.S. Penny Shortage

Although billions of pennies remain in circulation, the distribution network has hit a bottleneck. 

Several Federal Reserve coin terminals have paused penny transactions, creating gaps in the supply chain for certain regions.

With fewer pennies available, businesses are struggling to keep enough on hand for cash transactions, especially in high-volume industries like fast food and retail.

The Story Behind McDonald’s Cash Rounding

With the new McDonald’s cash rounding approach, purchases will be rounded up or down to the nearest five cents. 

For example, a $9.39 meal becomes $9.40, while a $12.06 meal drops to $12.05.

This cash transaction rounding policy applies only when coins are unavailable. It won’t affect credit, debit, or mobile payments. 

If you prefer exact totals, you can still use the McDonald’s app or other cashless options.

The Broader Coin Supply Shortage In The U.S.

The penny issue isn’t only limited to McDonald’s. Grocery stores, home improvement shops, and convenience stores have all reported similar struggles with change shortages. 

The coin supply shortage in the U.S. has prompted many stores to encourage exact cash payments or go fully cashless.

The American Bankers Association reports that about one-third of national coin terminals have stopped processing pennies entirely, making regional shortages more noticeable.

The Penny’s Final Chapter

The decision to end penny production came earlier this year, after it became clear that making each coin cost more than its value. 

Estimates put the cost per penny at roughly 3.7 cents to produce.

As the penny production ends, the Mint and Treasury Department will be phasing out their distribution, and retailers must adjust to new rounding procedures.

Navigating Cash Payments

For now, rounding only applies to cash purchases. Using cards or mobile payments will keep totals exact and avoid rounding altogether.

If you prefer to pay cash, it’ll help to carry small coins or expect slight rounding adjustments, depending on the location. 

Most stores are rounding fairly, ensuring totals remain as close as possible to the original price.

What This Means For Customers

Pennies may seem insignificant, but their disappearance is marking a shift in how we handle everyday payments. The phase-out reflects both changing economic realities and a growing move toward digital transactions.

For most customers, the adjustment will be minor. Still, it’s a reminder that even the smallest coins can have a big impact when they’re gone.

Did you find this information useful? Feel free to bookmark or to post to your timeline to share with your friends.