As the U.S. Mint ceased penny production in November 2025, many merchants have started rounding cash payments to the nearest nickel, a practice now supported by laws in 20 states and potentially by federal legislation. This shift is significant as it reflects the declining use of cash, with consumers averaging 47 payments per month in 2025, predominantly through credit cards.
Experts like Crystal Kaldjob from Goodwin Procter note that smaller merchants are increasingly imposing credit card surcharges to offset high swipe fees, which averaged 2.35% in 2024. This trend is exacerbated by rising credit card spending, which reached approximately $6.46 trillion, alongside a 9.3% increase in credit card processing fees to $148.52 billion.
The ongoing debate around a settlement from an antitrust lawsuit against Visa and Mastercard highlights the complexities of swipe fees and merchant costs, with retailers expressing concerns that the proposed settlement does not adequately address the core issues of competition in the payment processing market.
Overall, these developments could reshape consumer payment experiences and merchant pricing strategies in the evolving financial landscape