The humble penny has been part of our pockets, countertops, and cash registers for generations. But as production winds down and circulation decreases across the U.S., we’re all entering a new chapter together. One where rounding to the nearest nickel becomes the norm and the way we handle cash shifts just a bit.
At Ignite Credit Union, we know change like this can spark questions. Whether you own a business or just like to keep a little cash on hand, here’s what this transition means and how to keep life running smoothly without the penny.
Why Are Pennies Going Away?
This move for countries to phase out the penny isn’t a recent concept; it’s been in discussion for years. The reason comes down to cost, practicality, and use.
- It costs more than its value to make a penny.
Each penny costs over two cents to produce and distribute. That means taxpayers have been paying millions each year to create a coin that often ends up in jars or drawers instead of in circulation. - Inflation has reduced its purchasing power.
Decades ago, a penny could buy something small (Bazooka gum, anyone?). That isn’t the case these days. Its real-world value has diminished so much that many businesses no longer find it practical to handle. - Other countries have already made the change.
Canada, Australia, and New Zealand eliminated their lowest-value coins years ago with minimal impact on pricing or consumer experience.
Ultimately, this move helps streamline cash transactions, saves government resources, and simplifies life for everyone over time, without raising prices overall.
For Consumers: Tips to navigate everyday Life Without Pennies
For most of us, this change will be slightly noticeable, at first, in the checkout line. Here’s how to stay ahead of it.
Expect rounded cash totals.
When paying with cash, your total may round up or down to the nearest five cents. Over time, these small adjustments even out.
Use digital payment options when you can.
When you pay with a card or digital wallet, totals remain exact with no rounding necessary. It’s the simplest way to avoid carrying coins and to keep this change from impacting your daily routine.
If you don’t have a debit card today, stop by your local branch or give them a call to get one in your hands. Most branches can print you one while you wait. Just head to your respective brand and they’ll take care of you.
Turn spare change into savings automatically.
As pennies fade from circulation, you can still make your “spare change” work for you. With debit card round-up features, every purchase automatically rounds up to the nearest dollar, and the difference goes straight into your savings. It’s a simple, hands-off way to keep building your savings just like you once filled a coin jar, only now it happens digitally with every swipe. You can find this feature in our app by selecting Accounts > Amped Checking > Debit Card Round Ups.
Keep perspective.
This transition doesn’t mean cash is disappearing, it’s just evolving. By trimming out the penny, our economy reduces production waste, saves taxpayer money, and simplifies everyday transactions.
For Businesses: Tips to prepare for a Penny-Free Future
Small businesses, especially those that still manage a lot of cash, will feel this change first. The good news? With a few simple adjustments, you can keep transactions accurate, fair, and stress-free.
Implement rounding practices early.
The Common Cents Act is currently a bill pending in Congress. Until this passes, many retailers are choosing a neutral rounding method to the nearest nickel or consistently rounding down in the customer's favor. Below is an example of the neutral rounding method.
- $4.21 or $4.22 rounds down to $4.20
- $4.23 or $4.24 rounds up to $4.25
Card and digital transactions don’t require rounding, so this only affects cash sales.
Update your point-of-sale (POS) systems.
Check if your POS or accounting software has rounding settings. Most modern systems do. Turning this on now helps you (and your team) get comfortable before it’s required.
Communicate with your customers.
Let your customers know why totals might look slightly different in cash transactions. A small sign at the register or a short conversation goes a long way in building trust.
Embrace digital payments.
This shift is also an opportunity to encourage debit card use and digital payments. This helps both you and your customers save time and reduce errors.
Ignite’s Take
We know change, even small change, takes adjustment. At the Ignite Credit Union family of brands, our role is to help you navigate transitions like this with confidence and care.
If you have questions about how to prepare your business for cash rounding or how to redeem your coins, we’re here to help. Visit your local branch or give them a call. We’ll guide you every step of the way. Because while pennies may be phasing out, our commitment to supporting our members and communities is here to stay.
