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The U.S. Penny: The End of and Era

U.S. Penny Shortage

The US Department of Treasury will stop minting pennies in early 2026. Although pennies will no longer be produced, they will remain in circulation as legal tender. Digital payments are unaffected and will continue to process to the exact cent.
 
The decision to discontinue the production of new pennies was made to help reduce government spending. Each penny was worth far less than it cost to produce.
 
As penny circulation declines, we want to ensure you are informed and prepared. 
 

What this means for consumers

  • Rounded Prices – When paying with cash, you may begin to notice transactions being rounded to the nearest nickel.

  • Exact Change – Stores may ask for exact change or decline to make change involving pennies. Eventually, this may actually simplify cash transactions by lessening the need for trivial coins.

  • Coin Deposits – If you have coins saved up, this is a good time to deposit loose change into your bank accounts. Every coin helps support circulation.

 

What this means for businesses

  • Change Orders – Prepare now for low penny availability by managing your current inventory. Banks are no longer able to order pennies from the Federal Reserve and ability to fulfill change orders for pennies will be limited. Adjust inventory to keep an adequate supply of nickels on hand.

  • Pricing Strategy – Review your pricing and adjust cash handling procedures as needed. A common rounding guideline suggests rounding up when totals end in 3, 4, 8, or 9 cents and rounding down when totals end in 1, 2, 6, or 7 cents.

  • Customer Communication – Communicate any pricing changes to customers using cash so they’re not surprised. Train staff to explain the transition and answer customer questions confidently.

 
The retirement of the U.S. penny marks the end of an era that spans over two centuries. Thankfully, the impacts of this change won’t be happen overnight. Due to many years' worth of pennies still in circulation, this transition will be gradual.