Gap alerts shoppers to major checkout change as new payment rules take effect

Gap Factory checkout change: Gap Factory has begun alerting shoppers to a new checkout rule that affects how cash transactions are handled, as retailers adjust to a growing shortage of US pennies following the end of their production, as per a report.

Gap Factory introduces new cash checkout rule amid US penny shortage

The discount clothing chain, which operates under Gap Inc, has posted notices in stores explaining a new rounding policy that applies only to customers paying with cash, as per The Sun report. The change comes after the US Treasury halted nationwide penny production, ending a 232-year run of the one-cent coin.

How the end of penny production is changing Gap's in-store payments

According to a notice seen at a Gap Factory store in New Hyde Park, New York, cash change will now be rounded up to the nearest five cents when exact change cannot be provided, as per The Sun report. The policy applies only to the change returned to customers, not to the listed prices of items. Transactions made using cards or digital payments are not affected.


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What Gap Factory’s new rounding policy means for cash shoppers

Under the rounding rules, customers will still receive exact change if the amount ends in zero or five cents. If the change due ends in one to four cents, it will be rounded up to five cents. If it ends between six and nine cents, it will be rounded up to ten cents, meaning the adjustment favors the customer, as per The Sun report.

Why retailers are setting their own cash policies after penny production ends

It remains unclear whether other Gap Inc brands, including Old Navy, Banana Republic and Athleta, will adopt similar policies.

The move follows the Treasury Department’s decision to stop producing pennies after reporting a loss of $85.3 million from minting more than three billion coins in 2024. While pennies remain legal tender and an estimated 300 billion are still in circulation, no official federal guidance has been issued for retailers, prompting companies like Gap Factory to set their own rules.

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FAQs

What new change is Gap Factory making at checkout?
Gap Factory is rounding cash change to the nearest five cents when exact change can’t be given.

Why is Gap Factory making this change now?
The change follows the US Treasury’s decision to stop producing pennies.