Retailers Face New Costs and Choices as U.S. Stops Producing Pennies

In November 2025 the U.S. Mint stopped making pennies for circulation, and the last coins left the facility months earlier. With no nationwide framework, retailers are left to interpret a patchwork of state and local rules while updating point-of-sale, accounting and enterprise software—a process the National Conference of State Legislatures says could take six to nine months. Immediate costs include programming, signage and employee training, and rounding policies may impact profit margins, especially for high-volume, low-margin businesses.

Consumer perception of pricing, such as the traditional $X.99 strategy, could be challenged when cash totals are rounded up or down. International examples from Canada, Australia and New Zealand show that symmetric rounding can work, but those transitions were guided by national policies that the U.S. lacks. Ultimately, the penny phaseout may save the Mint $56 million annually, but retailers and cash-using shoppers could bear new expenses and pricing complexities.