It’s official: after more than 200 years in production, the U.S. government has stopped making pennies‡, citing cost savings as the primary motivation.

Key facts

  • On November 12, 2025, the U.S. minted its final order of pennies.
  • Although the penny will no longer be minted, it will retain its value indefinitely.
  • Businesses must manage this change carefully in 2026 as it can result in financial losses, legal entanglements, customer friction and more.
  • Operational agility and change management are critical elements for businesses navigating these currency adjustments.

Impacts for businesses

Financial losses

As pennies disappear from circulation, many retailers have adopted rounding cash transactions to the nearest nickel—often rounding down to avoid customer frustration. While this approach improves the customer experience, industry reporting notes that consistently rounding in the customer’s favor can create meaningful cumulative costs for retailers over time‡.

Legal risks

State and local “cash‑acceptance” laws prohibit treating cash‑paying customers differently‡, which makes rounding practices more complex and can expose businesses to significant penalties. Several states also restrict price differences based on payment method, so offering discounts for digital payments may create legal risk if it results in discriminatory or unfair pricing.

Operational headaches

Retailers face new challenges as the Federal Reserve vaults stop supplying pennies, disrupting self-checkout, vending machines, and check-cashing services. If your business handles large volumes of cash transactions, the end of the penny is no small matter for your logistics planning. And, while businesses scramble to adapt quickly, they open themselves to the risk of inconsistent currency practices, which can mean a more complex tax audit in the near future.

Customer friction

Inconsistent rounding (up versus down) or lack of exact change frustrates shoppers. Particularly for small businesses and retail establishments, pricing and change discrepancies can negatively impact customer experience and brand reputation.

Strategies to help you and your business adapt

Now that penny production has ceased, businesses should take proactive steps to prepare for the transition and maintain smooth operations. The following strategies can help you adapt with minimal disruption.

Audit your current cash inventory

Start by reviewing how many pennies you currently have on hand. This gives you a realistic timeline for when your supply will run out and helps you plan accordingly. Smaller businesses may already be out of pennies, while others may have enough to support cash transactions for a short period.

Connect with your financial institution

For a limited time, your bank may still have access to remaining penny rolls. If your business relies heavily on cash transactions, reach out early to understand availability and request additional supply if needed. This can help bridge the gap while you transition to new practices.

Review your point‑of‑sale (POS) settings

Ensure your POS system is configured to handle rounding rules accurately and consistently once pennies are no longer available. This includes verifying how totals are calculated, displayed, and recorded for both customers and internal reporting.

Train your staff on new procedures

Clear communication with frontline employees is essential. Provide guidance on how to explain rounding practices to customers and what to do if customers have questions or concerns. Consistency reduces confusion and helps maintain trust.

Update customer‑facing materials

If you plan to implement rounding, consider updating signage, receipts or FAQs to help customers understand the change. Transparent communication can reduce friction and prevent misunderstandings at checkout.

Monitor customer feedback and adjust as needed

As rounding becomes more common, keep an eye on customer reactions and operational impacts. If you notice recurring questions or concerns, refine your messaging or processes to address them.

Stay informed about legal requirements

Cash‑acceptance laws vary by state and municipality. Before implementing rounding or adjusting pricing practices, ensure your approach complies with local regulations to avoid potential penalties or claims of differential treatment.

Life without the penny

As the penny fades into history, its end highlights how quickly our payment landscape can evolve. By understanding the implications and preparing thoughtfully, businesses can navigate this change with confidence. In many ways, the penny’s farewell is a reminder that even small changes can spark meaningful improvements in how we work, serve customers and adapt to the world around us.

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