**Penny Production Halted in the U.S., Retailers Scramble to Adjust Pricing and Cash Transactions**
Now that the United States no longer makes pennies, gas stations, fast-food chains, and big-box stores are rushing to adjust prices and round cash transactions, a shift that could potentially affect their profits.
Pennies are disappearing faster than retailers anticipated following President Donald Trump’s decision earlier this year to halt production of the one-cent coin. Retail groups recently expressed frustration to Reuters over the lack of clear guidance from the Trump administration and lawmakers. This ambiguity has forced many businesses to round down prices to avoid upsetting customers or violating laws in certain states—a move that could cost high-volume retailers significant revenue.
The National Retail Federation (NRF) reported that the shortage of pennies has impacted retailers in both urban and rural areas, showing no clear geographic pattern. State restaurant associations have also voiced concerns about the scarcity of pennies.
“Any merchant that accepts cash is grappling with this,” said Dylan Jeon, senior director of government relations at the NRF, whose members include Walmart, Target, Macy’s, and Old Navy.
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### Stores Take Action Amid Shortage
Several major convenience store chains have started warning customers about the penny shortage:
– **Sheetz**, a family-owned convenience store, posted signs at one of its Pennsylvania locations stating: “The U.S. Mint will no longer produce pennies, so we are short on change!” The signs encourage customers to use cashless payment options, round up purchases to support charity, or exchange $1 in spare pennies for a free self-serve drink.
– **Kwik Trip**, based in La Crosse, Wisconsin, announced that its 850 stores across the Midwest will round cash transactions down to the nearest nickel.
At a Dallas Kwik Trip store, a sign notifies customers: “The U.S. Treasury has stopped making pennies and we may experience shortages.”
Meanwhile, **Kroger**, one of the largest grocery chains in the U.S., told Reuters it is still assessing the impact of the penny shortage. Many of its 2,700 locations have displayed signs asking customers for exact change.
Other big chains, such as a CVS in Alexandria, Virginia, have also posted notices requesting exact change due to “penny shortage.”
The Treasury Department has not responded to multiple requests for comment on the issue.
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### Lessons from Other Countries
Several countries—including Canada, Australia, Ireland, and New Zealand—have phased out their lowest-value coins. They now round cash transactions up or down to the nearest five cents while keeping electronic payments exact. These measures have cut minting costs and simplified cash handling for retailers.
In the U.S., phasing out pennies would require similar rounding practices, adjustments to cash registers, and clear communication to consumers. Such steps could deliver comparable savings and efficiency gains.
However, several states—like California, New York, and Illinois—have consumer protection laws mandating exact change on cash transactions. This creates legal uncertainty as pennies disappear from circulation. Retail groups say these laws make adjusting prices or rounding totals risky, potentially leading to fines or customer complaints.
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### Seeking Consistent Rules for Rounding
Although President Trump’s directive initiated the end of penny production, Congress retains authority over coinage. Legislation may still be necessary for a permanent discontinuation.
The NRF has been lobbying the Trump administration and Congress to provide consistent guidance, particularly regarding rounding practices for transactions.
“What’s most helpful in the near term is clarity on rounding practices — whether retailers can round up or down on transaction totals or change,” Jeon explained.
In a letter dated September 30 to congressional leaders, a coalition of trade organizations representing gas stations, convenience stores, travel centers, and grocery stores warned that “if these remedies are not addressed in short order, it will be challenging to legally engage in cash transactions with customers in growing swaths of the country.”
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### Impact on Retail Operations
Love’s Travel Stops, which operates more than 640 locations in 42 states, said the phaseout of penny production is already affecting its retail operations.
“If one of our stores runs out of pennies, all change on cash transactions will be adjusted in favor of the customer and Love’s will cover the difference,” a company spokesperson said. “This is a temporary measure while we work toward a long-term solution.”
Several months after Trump ordered the halt in penny production, the Treasury Department placed its final order for blank penny planchets in May. Some Federal Reserve Bank sites, responsible for distributing coins to banks and credit unions, have already stopped fulfilling penny orders.
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### Penny Production Costs and Savings
Producing a penny currently costs more than its face value—about 3.69 cents per coin in recent years. Ending penny minting is projected to save the government roughly $56 million annually.
There are approximately 114 billion pennies currently in circulation in the United States, but the Treasury says they are significantly underutilized.
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### The Penny’s Place in History and Public Opinion
The penny was among the first coins produced by the U.S. Mint after its establishment in 1792. Supporters argue that the penny helps keep consumer prices down and serves as a source of income for charities.
Critics view the coin as a nuisance that often ends up discarded in drawers, ashtrays, and piggy banks.
“I can’t even tell you the last time I carried pennies or even loose change when I left the house,” said Pennsylvania resident Sandy Berger, 45. “I really don’t think people will care to see them gone.”
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As the U.S. adjusts to life without pennies, retailers and lawmakers alike face the challenge of finding practical solutions that balance consumer convenience, legal requirements, and economic efficiency.
https://www.staradvertiser.com/2025/11/01/breaking-news/us-retailers-left-short-changed-as-penny-production-ends/
