McDonald’s has updated its cash payment policy across some U.S. locations due to a nationwide shortage of pennies following the U.S. Treasury’s cessation of penny production earlier this year. The fast-food chain now rounds cash transactions to the nearest five cents when exact change is unavailable, a change impacting only cash payments and not card or app transactions.
The new rounding system works as follows: if a customer’s total ends in 1 or 2 cents, the amount is rounded down to the nearest 0 cents; totals ending in 3 or 4 cents are rounded up to 5 cents; amounts ending in 6 or 7 cents are rounded down to 5 cents; and totals ending in 8 or 9 cents are rounded up to 10 cents. Totals ending in 0 or 5 cents remain unchanged. This update was first noticed in October when a franchise location in Chicago circulated a memo outlining the changes.
McDonald’s spokesperson confirmed the policy to TODAY.com, acknowledging the challenges posed by the penny shortage and stating that the company is working on long-term solutions alongside guidance from the federal government. The spokesperson remarked, “Following the discontinuation of pennies nationwide, some McDonald’s locations may not be able to provide exact change. Our team is actively seeking long-term strategies to ensure fairness and simplicity for customers.”
This rounding practice only affects cash transactions, as the majority of McDonald’s transactions in the U.S. are completed via credit cards, debit cards, or the McDonald’s app, where prices remain exact. The company encourages customers to use cashless payments or exact change where possible to ensure smooth transactions.
The penny shortage stems from a decision made in February 2025 when former President Donald Trump directed the Treasury Department to halt penny production due to the cost inefficiency of minting pennies, which costs 3.69 cents per coin. Though there are still an estimated 250 billion pennies in circulation, localized shortages have arisen because several Federal Reserve coin terminals stopped accepting pennies for distribution.
Retailers nationwide face similar issues and have adapted by rounding cash transactions, a practice common in countries like Canada, Australia, and New Zealand where low-denomination coins have been phased out.
Some McDonald’s customers have expressed frustration about the changes, concerned about fairness and the potential for being overcharged or undercharged. However, others note that rounding is a practical adjustment reflecting the evolving currency landscape.
As McDonald’s navigates this transition, the company remains committed to customer fairness and transparent communication. The long-term future of the penny remains uncertain, but for now, customers paying with cash should expect rounded totals to the nearest nickel at some McDonald’s locations.
