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The Penny is Retiring

A collection of copper-colored US pennies, stacked on top of each other, showing the head of Abraham Lincoln and the inscriptions "Liberty", "In God We Trust", and the year minted.

The U.S. Mint is officially retiring the penny. Rising production costs and declining use have made the smallest coin more expensive to produce than it’s worth. As circulation winds down, you may notice limited availability or delays in penny orders. We are actively monitoring supply levels and like other financial institutions nationwide, may need to reduce or deny requests based on availability.

Our Commitment

We will continue to accept pennies and our team is here to help support individuals and businesses during this transition.

What This Means for You as a Consumer

Cash transactions

Final totals at merchants may be rounded to the nearest nickel ($0.05).

Digital and electronic payments

Debit, credit and mobile transactions remain exact, with no rounding.

Pennies in hand

Pennies remain a legal tender. You can spend them or deposit them at your local branch.

What This Means for Your Business

If your business accepts cash payments, you’ll need to prepare for this transition by updating your Point of Sale (POS) system to support rounding policies for cash transactions. Electronic payments (credit cards, debit cards and digital wallets) will continue to process exact amounts.

Recommended Actions for Your Business

  • Assess hardware compatibility — older POS systems may require upgrades. 
  • Contact your POS provider to enable rounding features for cash transactions. Electronic payments will continue to be processed for the exact amount. (e.g., rounding to the nearest nickel).
  • Consult your tax professional to ensure your system and reporting remain compliant.
  • Train your staff to manage customer inquiries for a smooth transition.
  • Communicate with customers to make them aware of rounding with cash transactions by including signage at checkout or via email.

The U.S. Treasury Department has announced it will stop minting pennies and many believe this will happen in early 2026.

Yes. Rounding is fair and simple. Sometimes totals will round down, sometimes up, balancing out over time.

Please contact your Johnson Financial Group Relationship Manager with any questions.