Square announced a cash rounding functionality for U.S. sellers to help them deal with the end of penny production. The solution automatically rounds cash transactions to the nearest five cents using symmetrical rounding, while maintaining exact reporting for tax purposes.
Square announced the launch of a cash rounding functionality for sellers in the United States to help them navigate the end of penny production.
How It Works
The solution automatically rounds cash transactions to the nearest five cents:
- 1 or 2 cents → rounds down to 0
- 3 or 4 cents → rounds up to 5 cents
- 6 or 7 cents → rounds down to 5 cents
- 8 or 9 cents → rounds up to 10 cents
Addressing Real Business Needs
Even before the U.S. Treasury stopped minting pennies, there were shortages of the coin, and sellers were telling Square that there were times when they could not make exact change.
Key statistics:
- 19% of Square transactions in the U.S. are made with cash
- 16.7 million pennies change hands in these transactions each week
- Highest volume of cash transactions occurs at food and beverage sellers
Supporting Small Businesses
"The end of the penny has a real impact on sellers' operations, and small sellers don't have the sort of resources large chains have to adjust to this change," said Willem Avé, global head of product at Square.
"There are millions of neighborhood businesses who also have a critical need to maintain smooth operations. They deserve the same level of support, and our job is to make sure they can keep serving their customers without missing a beat."
Background
The final circulating penny was produced November 12, 2025. The cost of producing each coin had risen to 3.69 cents. By ceasing production, the U.S. Mint expects to generate $56 million in annual savings.