Financial institutions and retailers nationwide are starting to see a slowdown in penny circulation and availability following the U.S. Treasury‘s decision to end production of the coin. 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?
The penny is being phased out 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 once pennies are no longer available. 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: 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. We will keep you posted with updates from the Federal Reserve.