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The Penny is Retiring

What’s changing — and what it means for you

What You Need to Know:

The U.S. Treasury has announced plans to phase out the penny, with production ending once the Mint’s current supply is used. Pennies will remain legal tender for the time being, but cash transactions will be rounded to the nearest five cents. Digital transactions—including debit card, ACH, and online payments—will continue to process to the exact cent.

This change will affect both individuals and businesses that handle cash and may have minor accounting or reporting impacts for merchants.

Bank7 will continue to accept and process pennies, and we’ll update this page as more information becomes available from the Treasury and the Federal Reserve.

UPDATES: 

12/17/25 – Starting February 2, 2026, check cashing will be rounded to the nearest five cents. For example, a check totaling $13.01 or $13.02 would round down to $13.00, while $13.03 or $13.04 would round up to $13.05. 

What This Means For You

Here's what that means for everyday consumers:
  • Check cashing will be rounded to the nearest five cents.
  • Pennies remain legal tender and can still be deposited or exchanged at any Bank7 location.
  • Digital Transactions (ACH, debit card) transactions will still process for the exact cent.

What This Means For Your Business

If your business handles cash transactions, a few simple adjustments may be needed as the penny phases out:
  • Point-of-sale and accounting systems may require updates to handle rounding automatically.
  • Rounding policies should be clearly posted at checkout or noted on receipts so customers understand how their cash totals are adjusted.
  • Review recordkeeping and reporting practices to reflect any small rounding adjustments for cash transactions.
  • Businesses should prepare for reduced penny availability. Bank7 can no longer obtain new penny shipments from the Federal Reserve, and fulfillment of penny change orders will be limited as inventories decline.
FAQs
When will pennies stop being made? 

The U.S. Mint plans to stop producing new pennies once their remaining supply of blanks runs out. There isn’t a set date yet, and pennies will continue to be accepted in stores and banks for the time being.

Do pennies remain legal tender? 

Yes, pennies remain legal tender and can be deposited or exchanged at any Bank7 location. 

How will check cashing transactions be rounded? 

Check cashing will be rounded to the nearest five cents. For example, a check total of $13.01 or $13.02 would round down to $13.00, while $13.03 or $13.04 would round up to $13.05.

Will this affect my business point of sale system? 

Businesses may need to update their point-of-sale systems or accounting software to handle cash rounding. Check with your software provider for specific instructions.

How does this affect my business change order? 

Businesses should prepare for reduced penny availability. Bank7 can no longer obtain new penny shipments from the Federal Reserve, and fulfillment of penny change orders will be limited as inventories decline.