Businesses are running out of pennies in the US

October 31, 2025

The Trump administration's decision to stop minting pennies has created unexpected challenges for American retailers much sooner than anticipated. While the US Mint ceased production in May with shortages expected in early 2026, businesses began experiencing penny scarcity by late summer due to limited circulation of existing coins. Most retailers are responding by rounding cash transactions to the nearest nickel, with many choosing to round down to avoid legal complications, though this practice is costing companies millions of dollars annually.

Who is affected

US retail businesses, particularly convenience stores like Kwik Trip
Cash-paying customers, especially lower-income Americans without access to banking services
Store clerks managing cash transactions
Banks that can no longer obtain pennies from the federal government
The National Retail Federation and National Association of Convenience Stores (representing member businesses)

What action is being taken

Stores are rounding cash sales to the nearest five cents
Many retailers are specifically rounding down to avoid lawsuits and customer complaints
Stores are urging customers to pay in exact change
Retailers are hosting promotions encouraging customers to bring in spare pennies from home

Why it matters

This matters because the penny shortage is imposing significant financial losses on retailers who must round down transactions, costing individual companies like Kwik Trip up to $3 million annually. The situation disproportionately impacts lower-income Americans who rely primarily on cash transactions and lack access to banking services or credit cards. Additionally, the absence of federal guidelines creates legal uncertainty for businesses navigating conflicting local regulations about exact change requirements and pricing consistency between cash and card payments.

What's next

No explicit next steps stated in the article

Read full article from source: BBC