Business & Finance

Merchants adapt register prices following end of US penny production

Retailers turn to cash rounding and credit card surcharges as payment habits shift and transaction fees remain high.

Updated Aug 26, 2026 · 16:39 UTC1 reports

The short version

Following the U.S. Mint's end of penny production, retailers are increasingly adopting cash rounding to the nearest nickel and applying credit card surcharges.
Twenty states have enacted laws governing cash rounding, while federal legislation passed by both congressional chambers awaits reconciliation.
Small businesses are leaning on surcharges to offset rising payment processing costs, which averaged 2.35% per credit transaction in 2024.
Retail groups remain opposed to a proposed antitrust settlement with Visa and Mastercard, arguing its fee reductions do not foster enough industry competition.

The U.S. Mint stopped issuing new pennies for general circulation in November after manufacturing costs reached 3.69 cents per coin.[CNBC]
Twenty state legislatures have implemented statutes permitting or requiring merchants to round cash transactions to the nearest nickel.[CNBC]
The federal Common Cents Act, which establishes a framework to permit cash total rounding when exact change is unavailable, has passed both the House and Senate.[CNBC]
According to the Federal Reserve, consumers averaged 16 credit card payments and six cash payments per month in 2025.[CNBC]
Merchant swipe fees for credit transactions averaged 2.35% of purchase totals in 2024, up from 2.02% in 2010.[CNBC]

It is uncertain if or when the House and Senate will resolve differences between their versions of the Common Cents Act to secure final passage.[CNBC]
The approval of the pending Visa and Mastercard antitrust settlement remains unclear as retail industry representatives object to the terms.[CNBC]