Death to the Penny. What It Means for Merchants and Why It’s Time to Talk.

The penny has been part of American life for more than 200 years, but its time is almost up. According to recent statements from the U.S. Mint, while the penny will remain legal tender, new coins will no longer be issued once the blanks (the metal discs used to strike the coins) run out, expected as early as 2026.

As in other countries that have removed their lowest-value coins, cash transactions are expected to be rounded to the nearest five cents, while electronic payments will remain unaffected. This means the change will impact cash-handling merchants most directly, and it is time to start preparing.

Why This Matters for Merchants, Banks, and Payment Professionals

1. POS and cash handling updates are needed.
When rounding replaces the penny, cash totals ending in 1, 2, 6, or 7 cents will round down. Totals ending in 3, 4, 8, or 9 cents will round up.
It is important that merchants’ POS systems can handle this automatically so receipts, reports, and drawer balances remain accurate.

MPI systems are already equipped for cash rounding logic, no headaches required.
Our team can help verify that your merchants’ systems are ready well before the change takes effect.

2. Customers will have questions. Help merchants prepare good answers.
Once rounding begins, customers are bound to notice. Common questions may include:

• “Why didn’t I get exact change?”

• “Is this legal?”

• “Am I being charged extra?”

Here are sample responses your merchants can use confidently:

“The U.S. is phasing out the penny, so we round cash totals to the nearest five cents. It is the same system used successfully in Canada and other countries.”
“It evens out over time. Some totals round down, some round up, so you are not paying more overall.”

Encouraging merchants to prepare these responses now helps them handle customer conversations smoothly and professionally. It reinforces confidence and trust at the counter.

3. For sales professionals and partners, this is a great conversation starter.
As the penny disappears, merchants everywhere will be asking how to adjust. That makes this the perfect time to start a proactive discussion.

“With the U.S. preparing to retire the penny, are your POS and reporting systems ready for rounding?”

This opens the door naturally to talk about MPI’s adaptable POS and payment solutions, which already support rounding and cash adjustment logic.

By leading with readiness and insight, you position yourself and MPI as trusted advisors who keep merchants ahead of change.

The Bottom Line

The penny’s days may be numbered, but the opportunity to connect with merchants has never been stronger.
Now is the time to reach out, review systems, and demonstrate that MPI’s technology is ready for the next chapter in payment precision.

Let’s make sure every merchant is prepared and every conversation strengthens your partnership.