The U.S. government has made a historic decision: after more than 230 years, the penny is retiring. The U.S. Mint has stopped making new 1-cent coins due to the cost of production and the shift toward digital payments. While existing pennies remain legal tender, businesses that handle cash may start feeling changes soon. This article outlines what’s happening, why it matters, and how Commerce Bank will support you through the transition.

Why is the penny retiring?

The cost to mint a penny has exceeded its value for years. Today, each one costs about 3.7 cents to produce. Ending production is expected to save the government more than $56 million annually link opens in a new window. Americans also use cash less often. Roughly 41% of U.S. adults link opens in a new window report they don’t use cash in a typical week. As digital payments grow, the demand for low-denomination coins has dropped.

A recent presidential directive ordered the U.S. Treasury to stop minting new pennies. The Federal Reserve has already begun limiting penny distribution, which means supplies will continue to shrink as current inventory runs out.

What this means for cash payments.

Pennies still work. You can spend them or deposit them at your bank. But over time, as pennies naturally leave circulation, cash transactions will begin to look a little different. A bipartisan bill known as the Common Cents Act proposes rounding cash totals to the nearest five cents. While the bill has not yet become law, it’s expected to guide how cash payments evolve in the coming years.

To support consistency and prepare for dwindling supplies, Commerce Bank is rounding all cash disbursements up to the nearest nickel. This keeps things in your favor while minimizing the operational impact of the shortage. Rounding practices may be updated if additional government guidance is released. Digital payments, such as debit cards, credit cards, and mobile wallets, will not change. These transactions will continue using exact amounts.

What this means for your business.

If you handle cash regularly, it may be time to review your operations. Here’s what to expect:

• Pennies remain legal tender. You can continue using them for purchases and deposits.
• Commerce Bank will keep accepting pennies. There is no end date for depositing them and no fee for exchanging them for other money.
• Penny orders will be limited. Due to reduced supply, penny rolls are now reserved for Small Business and Commercial customers. Availability cannot be guaranteed as inventory decreases.
• Cash totals may round. As pennies phase out, rounding to the nearest nickel will become more common across retailers and service providers.

Some businesses may find it helpful to update point-of-sale training, signage for customers, or cash drawer processes as the transition continues.

What to do with the pennies you have.

Your pennies still have value. Here are a few ways you can put them to use:

• Spend them while merchants continue to accept them.
• Bring them to any Commerce Bank branch. Many locations have coin machines and do not require rolled coin.
• Look for pre-1982 copper pennies, which may have collectible value.
• Save a few as keepsakes to mark this historic shift in U.S. currency.

Commerce Bank is here to help.

The retirement of the penny marks a practical step toward a more efficient payment system — one that better reflects how people pay today. We’re committed to keeping you informed and prepared as the change unfolds.

We’ll continue sharing updates through our website, branches, and social media. If your business relies on cash, our team can help you assess what this transition means for daily operations. If you have questions, contact your Commerce Bank representative. We’re here to support a smooth transition for you and your team.