Business Guide to the Penny Phaseout

The U.S. Treasury stopped producing new pennies in 2025. While pennies are still available at City branches, they may become limited over time. Now is a good time to review your cash-handling practices and prepare for possible changes. Here are a few strategies to consider: 

ENCOURAGE ELECTRONIC PAYMENTS

Debit cards, credit cards and mobile wallets are not affected and will continue to process for the exact amount.

Many businesses are preparing to round cash transactions to the nearest nickel after tax:

Clearly communicate any cash-handling changes through signage, receipts, websites and social media. Make sure employees understand the process and can answer customer questions.

If you begin rounding cash transactions, consider adjusting your change orders to maintain an adequate supply of nickels.

Talk with your merchant-services provider to make sure your POS system can support rounding and properly reflect changes on receipts, reconciliation and reporting.

Consult your accountant or tax professional and stay informed about applicable cash-rounding requirements in the states where you do business.

Contact your local City banker with questions or to discuss your business cash needs.