Financial institutions and retailers nationwide are noticing a slowdown in the circulation and availability of pennies now that production has ended. To serve all customers fairly, The Merrimack is limiting penny transactions and change orders. While this shift may raise questions and concerns, The Merrimack is committed to helping customers and businesses navigate the change with confidence.
Why is Production Ending?
To simplify currency management and reduce costs. According to the government, it costs nearly 4 cents to produce and distribute each penny. As digital payments and card transactions become more common, demand for physical coins has steadily declined.
What Happens Next?
Although production has stopped, pennies are still legal tender and can be used for purchases or deposited at your bank. With circulation slowing down, banks and retailers are relying on recycled coins to help ease the slowdown.
How Will This Impact Purchases?
One of the most common concerns is how to adjust cash‑handling practices. Here’s what to expect:
- Electronic payments: Debit, credit, and digital transactions will not be affected. Prices will continue to be charged to the exact cent.
- Cash transactions: Businesses may round totals to the nearest five cents when paying with cash. This rounding will apply only to the final total, not to individual items.
- Fairness: There is no federal law mandating rounding. Rounding rules are expected to be neutral—sometimes rounding up, sometimes down—so customers are not disadvantaged over time.
We are monitoring the situation and effectively working to manage supply. If you have an accumulation of pennies, we encourage you to bring them into the bank to be deposited, rather than held indefinitely.