What the Penny Discontinuation Means for Your Business

With the federal government moving forward on the discontinuation of the penny, many businesses are wondering what this means for pricing, cash handling, and day‑to‑day operations. While the transition is expected to be gradual, it’s important for businesses to understand how this change may affect customer transactions and internal processes.

Why the Penny is Being Discontinued

Rising production costs that exceed the coin’s value
Declining consumer use of cash
Efficiency improvements for retailers and financial institutions
Alignment with global trends — many countries have already phased out low‑value coins

What This Means for Cash Transactions

Cash purchases will be rounded to the nearest five cents
Electronic payments (cards, mobile wallets) will continue to be charged to the exact amount
Businesses may need to update signage or customer communication
Cash drawers and coin orders will gradually shift to reflect the change

How Businesses Can Prepare

Review pricing strategies to ensure clarity and fairness
Train staff on rounding rules and customer communication
Update POS systems or cash registers if needed
Adjust cash‑handling procedures and coin inventory
Communicate early with customers to avoid confusion

Benefits for Businesses

Faster checkout times
Reduced coin‑handling costs
Less time spent counting, rolling, and ordering coins
Smoother cash‑drawer balancing at the end of the day

The Bottom Line
The penny’s disappearance isn’t a disruption — it’s a transition. With thoughtful planning and clear communication, businesses can adapt easily, reduce operational friction, and continue delivering a smooth customer experience.

We’re Here to Help
If you’re a business who orders coin, here’s what you need to know. We’re committed to helping you navigate. To help ease this transition, business customers may request $5 - $10 in pennies per week while supplies last. VeraBank is no longer able to offer penny ordering services. This means express orders for pennies can no longer be placed through the Federal Reserve system. We encourage business clients to monitor usage and adapt accordingly.

Want to explore more efficient payment acceptance options? Please reach out to a Business Banking Specialist or learn more on verabank.com.

For additional insights on the upcoming penny discontinuation, we invite you to explore the below informative VeraBank articles or the U.S. Treasury website.