Florida Penny Shortage: Major Chain Halts Exact Change Transactions

Recent changes in U.S. currency production have forced retailers and restaurants, including McDonald’s, to stop accepting exact change. This decision follows President Donald Trump’s announcement on February 9, 2024, to cease minting the penny due to escalating production costs. As a result, cash transactions at many stores will now be rounded to the nearest nickel.

Impact of the Penny Shortage on Retailers

Many retailers across the nation are grappling with the implications of this penny shortage. McDonald’s USA issued a statement noting that certain locations will no longer provide exact change. They are actively seeking solutions in collaboration with federal authorities to navigate this transition smoothly.

Rounding Cash Payments

• Cash payments will round to the nearest nickel.
• If rounded up, the excess will appear as a credit on the customer’s next bill.
• If rounded down, the reduction will be added as a debit on the following month’s bill.

This new policy significantly affects residents of Fort Walton, Florida, where city officials have confirmed the inability to give back pennies for utility payments since November 1, 2024.

Production and Financial Implications

The U.S. Mint has reported that it costs 3.7 cents to produce a penny and 13.8 cents to mint a nickel. A staggering 3.23 billion pennies were minted in 2024 alone, more than double any other coin. Interestingly, this production has been deemed unsustainable, resulting in a projected savings of $56 million for the government by discontinuing pennies.

Despite inconsistent profits from penny production, the U.S. Mint remains financially viable through the creation of other coins and collectible sets.

Alternative Solutions for Customers

• Customers can use Coinstar kiosks to convert coins into cash.
• Publix supermarkets also provide coin sorting machines for cash exchange.
• Coin sorting at Publix incurs a fee between 9-10% of the total amount exchanged.

With the U.S. government’s swift action to eliminate the penny, there are calls for legislative measures like the Common Cents Act. This proposal seeks to formalize rounding methods for cash transactions, providing clarity for both consumers and retailers.

Lessons from Other Countries

The experiences of other nations, such as Canada, which phased out its one-cent coin in 2012, serve as potential templates for the U.S. Canada has continued to redeem and recycle these coins well after their removal from circulation.

The abrupt removal of the penny in the U.S. has generated confusion. Both the retail and banking sectors are urging the government to provide clear guidance to address the ensuing challenges.