What Does the End of Penny Production Mean for You or Your business?

09/24/25


To reduce excess government spending, President Trump ordered the U.S. Treasury to stop producing new pennies in early 2026. The U.S. isn’t alone in this decision – Australia and Canada stopped minting pennies years ago. Here’s what you need to know about the upcoming penny retirement and its effect on cash transactions.

 

What Impact Will This Have on You or Your Business?

As Penny circulation continues to decline, we're here to help you stay informed during the transition.
 
  • The Federal Reserve has stopped fulfilling penny orders, after previously rationing its limited inventory.
  • This is impacting change orders at many Sunflower Bank and First National 1870 locations, as well as other financial institutions.
  • Requests for rolls of pennies may be denied due to limited supply.
 

What Response Should You or Your Business Take?

Businesses may experience coin shortages, complicating transactions that require exact change. With fewer pennies in circulation, businesses should proactively update their cash-handling procedures, while individuals are encouraged to use digital payment methods such as direct deposit and card-based transactions.
 
  • To navigate coin shortages, businesses can consider rounding cash transactions and promoting electronic payment options–including direct deposit, debit or credit cards, and digital platforms like Venmo, PayPal or Zelle.
  • Ensure customers are informed about the penny shortage and any changes in payment practices by posting signage and offering clear communication at the point of sale.  
  • Encourage use of electronic payments to reduce customer inconvenience as they will remain unaffected by the phase-out of the penny.
  • Transactions made with credit or debit cards will continue to be processed at their exact amounts, without any rounding.
 

Key Considerations

We encourage all individuals and businesses to consider the impact of this change. We’re working in partnership with the Federal Reserve, Treasury and other key stakeholders to ensure a smooth transition to the phasing out of the penny.
 
  • Per a report from the Federal Reserve of Richmond, it’s likely that rounding cash transactions to the nearest nickel with the removal of the penny will be the guidance moving forward.
    • In preparation for shortages, businesses should consider keeping nickels on hand to accommodate rounding and ensure smooth cash transactions.
  • A common rounding rule is as follows: If the final digit of a purchase ends in 3, 4, 8 or 9 cents, the total will be rounded up; if it ends in 1, 2, 6 or 7 cents, it will be rounded down. Transactions ending in 0 or 5 cents are not rounded.
  • Educate staff on rounding practices for cash transactions.
  • Provide scripts or talking points for explaining changes to customers.
  • Train employees to handle customer questions with clarity and consistency.
  • Review procedures for managing coin inventory and responding to shortages.
 

How We're Supporting You

As the U.S. phases out penny production, we recognize the impact this change may have on businesses, banks, and everyday transactions.
 
  • We’re closely monitoring penny supply at our locations and working to manage it efficiently.
  • We’ll continue to provide resources and guidance as new information becomes available.
  • Our team is here to help provide thought leadership with cash-handling strategies, staff training and customer communication tools.
 
Thank you for your continued partnership and trust. We’re here for you.


Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
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Venmo is a service of PayPal, Inc., a licensed provider of money transfer services (NMLS ID: 910457).
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Ready to explore how Sunflower Bank can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

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This article contains general information only. Sunflower Bank, N.A. is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.