Pennies Phased Out: McDonald’s Updates Cash Payments for 2025

Pennies Are Being Phased Out — And McDonald’s Is Changing How Cash Payments Work

In 2025, a big shift is happening in how Americans use money. The U.S. Treasury has ended the production of pennies, and this change is having a ripple effect across stores, restaurants, and especially places like McDonald’s. As the penny becomes harder to find, McDonald’s is updating how it handles cash transactions to make things fair and manageable.

Pennies Phased Out

This new system affects only cash payments — if you pay with a card or mobile wallet, nothing changes. Below, you’ll find a full breakdown of what’s happening, why it matters, and how it impacts everyday customers.

What’s Going On with Pennies in the U.S.

The penny has been an American staple for over two centuries — but now its days are numbered. In 2025, the U.S. Treasury announced that it would end minting new pennies beginning in early 2026.

Why is the penny being phased out? Because it costs more to make a penny than the penny is worth. Over time, production costs have risen sharply — making it inefficient and wasteful.

Even though new pennies will no longer be minted, existing pennies will still remain legal tender — meaning they are still valid currency and can be used in transactions.

As pennies become scarcer, businesses are finding it harder to give or receive exact one‑cent change. That’s why stores and restaurants are beginning to adopt rounding systems for cash payments.

McDonald’s Responds — Rounding to the Nearest Nickel

McDonald’s is one of the major retailers adapting quickly. The fast food chain confirmed that some of its U.S. locations have already started rounding cash transaction totals to the nearest five cents when exact change isn’t available.

Here’s how the rounding works in practice:

• If your total ends in 1 or 2 cents, it would round down to the nearest 0 (so 0 or 5).

• If it ends in 3 or 4 cents, it rounds up to 5 cents.

• Totals ending in 6 or 7 cents will round down to 5 cents.

• Totals ending in 8 or 9 cents will round up to 10 cents.

• Amounts ending already at 0 or 5 cents remain unchanged.

Importantly, McDonald’s says this rounding only applies to cash payments. If you pay with credit/debit card, mobile wallet, or through their app, the exact amount will still be charged — no rounding happens.

McDonald’s also noted that this change is a response to the broader challenge: many U.S. retailers are struggling to handle exact one‑cent change as pennies become harder to come by.

Why This Change Matters — For Customers & Businesses

For Customers

• Cash shoppers may see small differences in their total — a few cents might be added or subtracted depending on rounding.

• Some people might feel uneasy about fairness — will they lose money if prices round up frequently?

• But for card users or app users, nothing changes. The exact price still applies.

For McDonald’s and Other Businesses

• Making exact change gets tougher without enough pennies circulating.

• Rounding simplifies transactions and eases the burden on cashiers.

• Many countries that phased out small coins have long practiced rounding systems; the U.S. is catching up.

Real‑World Impact & Customer Reactions

A few McDonald’s locations have already implemented the change, though not yet nationwide. Some customers noticed the new rounding notices posted in restaurants. 

Not everyone is happy. Some people worry that rounding up too often could raise costs for cash-paying customers over time. Others argue it’s minor and practical, especially when pennies are increasingly rare.

Because this is a new shift, reactions are mixed. Many are watching to see how large chains and small businesses handle the change.

Parallel Examples: What Other Countries & Stores Did

Rounding policies aren’t new. In several countries (like Canada and Australia), low‑value coins have been phased out before, and stores switched to rounding to the nearest five or ten cents.

Some U.S. chains are also moving in the same direction. For example, Kwik Trip, a Midwest convenience store chain, is phasing out pennies in many locations and rounding down all cash transactions to the nearest five cents until further policy is set.

What You Should Do as a Consumer

If you use cash often, here are a few steps to adapt:

1. Be aware of rounding rules — if your bill ends in a few cents, expect it to be rounded either up or down.

2. Consider switching to card, mobile, or app payments for exact pricing.

3. Ask questions — if you get change or a receipt that looks odd, you can ask the cashier.

4. Stay informed — as more businesses adopt rounding, the system may standardize or be regulated.

Longer-Term Outlook & What’s Next

• The U.S. Treasury will stop making pennies in early 2026.

• Businesses across retail, food service, and small shops will likely adopt rounding protocols.

• Eventually, the nickel (5-cent coin) may become the lowest common small coin in circulation.

• Legislative or regulatory standards may emerge to ensure fairness and consistency across states and businesses.

Why This Story Is Important

• It reflects how U.S. currency is evolving with changing costs and technology.

• It highlights challenges in everyday life — things as small as one cent can matter at scale.

• It also shows how big brands adapt to national policy changes and maintain customer fairness.

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