The U.S. Treasury Is Discontinuing the Penny: What You Need to Know

After more than two centuries in circulation, the U.S. Treasury has officially stopped minting new pennies. This historic decision aims to save millions in production costs and streamline Valley Strong is a community-focused credit union and our Team Members are here to assist you through your financial journey. Access our Financial Literacy Center to learn more. cash transactions.

Why Is the Penny Going Away?

• High Cost: It costs more than 3 cents to make a penny worth 1 cent.
• Limited Use: Most pennies end up in jars, not in circulation.
• Efficiency: Ending penny production saves taxpayers over $50 million annually.

What Happens Now?

• Existing Pennies Stay Legal: You can still use them for purchases or exchange them for higher denominations to help ease the slowdown.
• No New Pennies: Banks and retailers won’t receive new supplies.
• Rounding Rules: Cash transactions will round to the nearest nickel. Digital payments remain exact.

How Will This Affect Businesses?

• The penny phase-out impacts businesses in several ways:
• Penny Coin Orders: Valley Strong can no longer order new penny stock and will not be able to fulfill penny coin orders any longer. We will continue to support our Business Members navigating these changes.
• Pricing Adjustments: Retailers may need to update point-of-sale systems to handle rounding rules. Most will round to the nearest nickel, but policies vary by state.
• Cash Handling Costs: Businesses that rely heavily on cash transactions will see reduced time and labor for counting and managing pennies.
• Customer Communication: Stores should clearly post rounding policies to maintain transparency and trust.
• Accounting & Compliance: Companies must ensure compliance with state regulations on rounding (some require rounding down to avoid overcharging).
• Opportunity for Digital Payments: Businesses may encourage card or mobile payments to avoid rounding altogether.

What Should You Do?

• Check around the house, in couches and piggy banks, or in your car for pennies and bring them into any Valley Strong branch to use our free coin machine services.
• Switch to digital payment methods. You can add your Valley Strong debit card to your mobile wallet.
• Watch for posted rounding policies at your favorite stores.  

FAQs About the Penny Phase-Out

Can I still use pennies? 
Yes! All existing pennies remain legal tender. You can spend them as usual.

Will prices increase because of rounding? 
Studies show rounding has minimal impact. Some transactions may round down, benefiting cash payers.

What about digital payments? 
No change—card and mobile payments will still charge exact amounts.

Should I save my pennies? 
They won’t gain significant value soon, but collectors may pay more for rare coins.

How will stores handle rounding? 
Policies vary by state and retailer. Most will round to the nearest nickel, often rounding down to avoid legal issues.

More information about the discontinuation of penny production will become available and you can always ask a Valley Strong Credit Union Team Member to explain anything you have questions about. If you are a business owner and have questions about how this will affect your business, or are wanting more information about cash management services, give our experienced business banking team a call at (661)833-7530, option 3.