Say Goodbye to the Penny What Store Owners Need to Know About Pricing, and What Happens to America’s 114 Billion Pennies

What happens when America stops making its most iconic coin? For years, the humble penny has been more of a nuisance than a necessity at the register—but now, the U.S. Mint is making moves that could bring the penny's 100+ year run to a close. As a store owner, you need to understand what this shift means for your business, your pricing strategy, and your customers' experience.

Let’s break down what’s happening, why it matters, and how you can stay ahead of the change.

Why Is the Penny Being Phased Out?

The U.S. Mint spends nearly 2.7 cents to produce each one-cent coin. Multiply that by the 114 billion pennies currently in circulation, and you get a costly, outdated system that no longer serves most Americans or businesses.

In fact, as highlighted by CNN, only 12% of people regularly use pennies. Most of them end up forgotten in jars, drawers, or cash registers—rarely recirculating into the economy. Given the rising cost of materials and the growing shift to digital payments, the penny is simply no longer worth the effort.

What Does This Mean for Retailers?

While eliminating the penny might sound like a small change, it has big implications for retail businesses—especially those handling cash.

1. Rounding Becomes the New Norm

Without pennies, businesses will likely begin rounding cash transactions to the nearest 5 cents.

• $10.02 becomes $10.00
• $10.03 becomes $10.05

Card and digital payments won’t be affected—but cash-heavy stores will need to train staff and update systems to accommodate fair and transparent rounding.

2. Customer Communication Will Be Key

Your customers will have questions, and possibly concerns. Be proactive:

• Post signs explaining the rounding policy.
• Be consistent across all registers.
• Empower employees to explain the change confidently.

This is an opportunity to build trust and show that your store is adapting responsibly.

3. Pricing Strategies May Shift

Retailers who rely on psychological pricing—like $9.99—may need to reconsider how prices are displayed and perceived. With rounding in play, the difference between $9.99 and $10.00 might no longer make sense in a cash setting.

This could be a great time to:

• Review pricing models
• Analyze how often your customers pay with cash
• Align your pricing with new transaction habits

What Happens to All the Existing Pennies?

The Mint hasn’t announced a specific plan yet, but typically, coins are slowly withdrawn from circulation over time. Banks may stop distributing them. Customers may start turning them in. And eventually, pennies will become a collector's item or simply fade out of daily use.

Some retailers may still accept pennies for a while, but the focus will shift toward cash efficiency—and minimizing friction at the register.

How Store Owners Can Stay Ahead

Retailers who plan now will be better positioned to handle the transition smoothly. 

Here’s what to do next:

• Evaluate your POS system – Is it equipped to handle rounding?
• Train your staff – Make sure they understand the new cash-handling procedures.
• Communicate early – Let customers know what to expect and why.
• Audit your pricing – Align with the new reality of round-cash transactions.

The penny might be small, but this shift is significant—especially for businesses still managing in-person, cash-heavy sales.

“This is more than a coin issue—it’s a systems issue. Take this moment to revisit your checkout process, streamline your pricing, and explore digital payment options if you haven’t already. Retail is always evolving, and the stores that adapt early will lead the way.”

📚 Need help modernizing your POS or pricing strategy?

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• Done-for-you retail solutions to help you streamline your operations
• 1-on-1 coaching with Rachael to tackle your store’s unique challenges
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