Fewer pennies cause stores to change the way they make change

Heading into the holiday shopping season, local banks and retail stores may have to begin dealing with a decreasing number of pennies available to make change for cash customers.

Last week, the Associated Press confirmed that the United States is, indeed, running out of pennies — following the decision last February to halt their production. The decision follows several countries that have already eliminated their penny equivalents, including Canada (2012), Australia (1992), New Zealand (1987), and the Bahamas (2020).

Merchants in multiple regions of the country have already run out of pennies and are unable to produce exact change. Meanwhile, banks are unable to order fresh pennies and are rationing pennies for their customers.

One convenience store chain, Sheetz, got so desperate for pennies that it briefly ran a promotion offering a free soda to customers who bring in 100 pennies. Another retailer said the lack of pennies will end up costing it millions this year, because of the need to round down to avoid lawsuits.

To be sure, not one retailer or bank has called for the penny to stick around. Pennies, especially in bulk, are heavy and are more often than not used exclusively to give customers change. But the abrupt decision to get rid of the penny has come with no guidance from the federal government. Many stores have been left pleading for Americans to pay in exact change.

Jeff Lenard of the National Association of Convenience Stores told the AP that his organization has supported eliminating the penny for decades, but that this sudden change is not the way they wanted it to happen.

Both the penny and the nickel cost more than their face value to produce — about 3.7 cents per penny and 13.8 cents per nickel.

More than 3 billion pennies were issued in 2024, creating $32 million in coinage — but costing $118 million to make. The penny was the second-most-minted U.S. coin last year, behind the quarter, yet one of the least recirculated.

The problem with pennies is they are issued, given as change, and rarely recirculated back into the economy. Americans store their pennies in jars or use them for decoration. This requires the Mint to produce significant sums of pennies each year.

The U.S. government expects to save at least $56 million annually by ending penny production.

The U.S. Mint will stop making new pennies when its final supply of penny blanks runs out in early 2026. Meanwhile, the Federal Reserve will distribute what remains in its current supply. 

While pennies will remain legal tender, many organizations won’t be able to obtain more copper coins once existing reserves are depleted.

Banks are encouraging businesses to review pricing and payment models early to ensure smooth transactions and consistent change delivery once the coin is no longer available.

McDonald's has already announced that some of their locations may no longer be able to provide exact change as pennies gradually come out of circulation nationwide.

The fast-food chain confirmed to news outlets that where necessary it will round orders to the nearest 5-cent increment for cash customers without exact change. However, rounding will not apply to card payments or other cashless options.

Meanwhile, a bill pending in Congress — the Common Cents Act — would formally end penny minting, require cash transactions to be rounded to the nearest five cents, and establish related rules for federal currency policy.



A sign in a convenience store on October 23 in Yorkville, Wisconsin, says the store will no longer use pennies to make change. (AP Photo Morry Gash)