Full Breakdown
Cash Rounding and Credit-Card Surcharges Redefine Checkout Costs
8/27/2026, 9:17:46 PM
Core Changes at the Register
The cessation of penny production by the U.S. Mint has prompted many merchants to round cash transactions to the nearest nickel. At the same time, an increasing number of small retailers are adding surcharges to credit-card purchases to offset higher “swipe fees.” Together, these practices are reshaping the total amount consumers pay at the point of sale.
Background & Context
The U.S. Mint issued its final penny for circulation in November in Philadelphia, ending a 232-year run of production. Over the preceding decade, the Mint’s cost to produce each penny rose from 1.42 cents to 3.69 cents, while an estimated 300 billion pennies remain in circulation. Declining cash usage has coincided with a rise in card payments: the Federal Reserve’s 2026 *Diary of Consumer Payment Choice* reports that consumers averaged 47 payments per month in 2025, with 16 made by credit card, 15 by debit card and six in cash. In 2016, cash was the most common method, appearing in 14 monthly transactions, compared with eight credit-card transactions.
Since 2013, Visa and Mastercard have permitted merchants to impose surcharges on credit-card transactions—but not on debit cards. The practice has become more common among small merchants seeking to recoup the growing swipe-fee burden.
Data & Statistics
| Metric | Figure | Source |
|---|---|---|
| Cost to produce a penny (2025) | 3.69 cents per coin (up from 1.42 cents a decade earlier) | U.S. Mint |
| Pennies still in circulation | ~300 billion | U.S. Mint |
| Average monthly payments per consumer (2025) | 47 total; 16 credit-card, 15 debit-card, 6 cash | Federal Reserve |
| Average swipe fee (2024) | 2.35 % of purchase price (vs. 2.02 % in 2010) | National Retail Federation |
| States with cash-rounding laws | 20 | National Cash Rounding Legislative Observatory (Centsless) |
| Federal legislation | Common Cents Act (bipartisan) – would allow optional rounding to the nearest nickel; rounding down for totals ending in 1, 2, 6, 7 cents and up for 3, 4, 8, 9 cents | Congressional record |
Official Statements & Responses
He noted that average swipe fees rose to 2.35 % in 2024, intensifying pressure on merchants to seek cost-recovery mechanisms.
Verbatim Quotes
- “A lot of the merchants that I work with really want some clarity so they can move forward with a policy as to how they manage customers who are paying cash in stores,” — Kaldjob
What's Next
The bipartisan Common Cents Act has cleared both chambers of Congress, but differences between House and Senate versions remain unresolved, leaving the timing of final passage uncertain. Additionally, a pending settlement in a retailer antitrust lawsuit against Visa and Mastercard could lower swipe fees and grant merchants broader discretion to reject higher-fee credit cards; however, many retailers have expressed opposition to the settlement’s terms.
These developments suggest that the landscape of checkout pricing will continue to evolve as policymakers, payment networks, and merchants negotiate the balance between consumer convenience, merchant costs, and the legacy of a coin that has now vanished from production.
