What Businesses Should Know About the End of the Penny
To help reduce government spending, the U.S. Treasury will discontinue production of new pennies in early 2026 following an order from President Trump. The United States joins other nations—such as Australia and Canada—that have already retired their smallest coin.
Here’s what this change means for your business and how Citizens National Bank is supporting you through the transition.
What This Means for Businesses
As penny circulation declines, we want to ensure our customers remain informed and prepared.
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The Federal Reserve has stopped fulfilling penny orders and previously rationed its limited supply.
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Change orders at Citizens National Bank and other institutions may be affected.
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Requests for penny rolls may be delayed or denied due to ongoing shortages.
How to Prepare
With fewer pennies in circulation, cash transactions requiring exact change may become more difficult. To stay ahead, businesses should update cash-handling and payment practices.
Recommended steps:
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Round cash transactions to the nearest nickel when pennies are unavailable.
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Encourage electronic payments such as debit or credit cards, direct deposits, or digital payment platforms (Venmo, PayPal, Zelle, etc.).
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Communicate clearly with customers. Post signage explaining the change and how rounding will work.
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Train staff to explain the transition and answer customer questions confidently.
💡 Note: Electronic transactions—credit or debit card purchases—will continue to process exact amounts without rounding.
Understanding Rounding Guidelines
The Federal Reserve Bank of Cleveland anticipates that rounding to the nearest nickel will become the national standard as pennies are phased out.
A common rounding guideline is as follows:
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Round up when totals end in 3, 4, 8, or 9 cents
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Round down when totals end in 1, 2, 6, or 7 cents
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No rounding for totals ending in 0 or 5 cents
Tips for businesses:
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Keep an adequate supply of nickels on hand.
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Provide employees with clear scripts or talking points to explain rounding to customers.
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Review and adjust coin management and cash-handling procedures as needed.
Our Commitment to You
At Citizens National Bank, we’re working closely with the Federal Reserve, U.S. Treasury, and other partners to ensure a smooth transition.
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We are actively monitoring penny supplies across all locations.
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We will share updates and guidance as new information becomes available.
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Most importantly, we remain committed to supporting our customers throughout this change.
Thank you for your continued trust in Citizens National Bank. Together, we’ll navigate this transition and keep your business moving forward.