The Penny Is Being Phased Out — Here’s What You Need to Know

In May 2025, the U.S. Treasury placed its final order for penny blanks. Once those supplies run out, likely by early 2026, the U.S. Mint will stop producing new pennies.

As we move closer to this change, many people are wondering what it means for everyday transactions and the role of cash. We’re here to help break it down and ensure you feel confident navigating a more digital financial landscape.

Why Is Penny Production Ending?

Simply put — the penny costs more than it’s worth.
In 2024, it cost roughly 3 cents to make just one penny, contributing to more than $85 million in losses for the U.S. Treasury.

At the same time:

• Inflation has reduced the penny’s purchasing power
• Digital and contactless payments have become more common
• Cash is used less frequently, especially for small purchases

With these shifts, the penny is no longer practical or economical to keep in circulation.

What This Means for You

Cash Purchases Will Be Rounded in Favor of Consumers
Once pennies are phased out, cash totals will round to the nearest five cents — and always up in favor of the consumer. Examples:

• $1.01–$1.02 would round down to $1.00
• $1.03–$1.04 would round up to $1.05

This approach helps ensure customers receive the most from their cash transactions.

Plains Commerce Bank will begin limiting penny order requests to $5 for businesses, and $2 for consumers. 

Retail Pricing Adjustments
Some retailers may update pricing to avoid rounding (for example, pricing an item at $1.00 instead of $0.99) or encourage digital payments to simplify checkout.

Digital Payments Stay Exact
No rounding applies when paying with a debit card, credit card, or mobile wallet. Your transaction will still process to the exact cent — making digital banking a convenient choice.

Pennies Will Still Be Accepted
Even after production ends, pennies remain legal tender. You can continue to spend them, deposit them, or exchange them at the bank until they naturally become less common.

The Future Is Digital — And Plains Commerce Bank Is Here to Help

The end of the penny is one more sign of our shift into a faster, safer, more digital banking environment. That transition opens the door to:

• Streamlined transactions
• Secure account access from anywhere
• Personalized financial tools

No matter how you prefer to pay — with cash, card, or your phone — we’re here to help you make informed decisions and feel confident about the future of your finances.

If you’d like to explore the benefits of Digital Banking, stop by your nearest Plains Commerce Bank location or give us a call. We’re always happy to help!