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Making Sense of Not Making Cents: What To Do with Pennies: By Heather Hennerich

Do you have pennies piled in cups or jars at home because you rarely use cash?

If so, you’re in good company. Cash purchases in 2024 dropped to only 14% of U.S. transactions, according to a 2025 Federal Reserve Financial Services (FRFS) study. The increase in noncash transactions is one of the reasons it made sense to end production of the 1-cent coin, the Treasury Department explained in answers to frequently asked questions about the discontinuation.

Penny production stopped Nov. 12, 2025, around six months after the news broke about the planned phaseout. The move raised questions about everything from how stores should round totals for cash purchases to what people who have used pennies to tile floors should do to replace missing coins.

Read on for answers to the more common questions, along with reasons for the penny phaseout and details about the Fed’s role in penny distribution.

Read more at St. Louis Federal Reserve

How this new mail rule could affect your ballot, your tax return and more

A new U.S. Postal Service rule on how your mail is handled could affect your ballot, taxes and other time-sensitive deliveries.

The rule, which went into effect on Christmas Eve, defines the meaning of a postmark, the date printed or stamped on most mailed items. In the past, the postmark generally indicated the date the USPS received the item. Now, it will explicitly mean the date that the USPS processes the item.

The update "does not change any existing postal operations or postmarking practices, but is instead intended to improve public understanding of postmarks and their relationship to the date of mailing," the new Postal Service rule reads.

Read more at PBS.ORG

IRS faces challenges in 2026 tax season due to jobs cuts and new laws

WASHINGTON (AP) — The national taxpayer advocate is cautioning that the 2026 tax filing season is likely to present challenges for taxpayers who encounter problems with filing their taxes given the exodus of IRS workers since the start of the Trump administration.

National Taxpayer Advocate Erin M. Collins released her annual report to Congress on Wednesday, two days after the start of the 2026 season. She finds that while the IRS was able to process returns in 2025 without major disruptions, "entering 2026, the landscape is markedly different."

"The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes" mandated by Republicans' tax and spending measure that President Donald Trump signed into law last summer, Collins said in her report.

Read more at PBS.ORG

US firms continue to dominate the global FinTech market securing six of the top 10 deals in Q4 2025

Key global FinTech investment stats in Q4 2025:

• Global FinTech investments increased by 53% YoY
• US firms secured six of the top 10 deals as the country continued to dominate the FinTech marketplace globally
• Trade Republic, a Germany-based digital investment and banking platform enabling European consumers to invest in stocks, ETFs, digital assets and private markets, secured one of the top global FinTech deals of Q4 2025 with a $1.5bn funding round
• Global FinTech investments increased by 53% YoY

In Q4 2025, the global FinTech sector recorded 889 transactions, representing a 15% increase from the 776 deals completed in Q4 2024.

Read more at FINTECH GLOBAL

First Bank Failure of 2026

• Key insight: Federal Deposit Insurance Corp. officials wound down Chicago-based Metropolitan Capital Bank & Trust Friday, brokering a sale of most of the bank’s assets to Detroit-based First Independence Bank.
• Supporting data: The failure is the first of 2026, and is estimated to cost the FDIC’s Deposit Insurance Fund $19.7 million, according to the agency. Metropolitan reported $43 million in liabilities against advances from the Federal Home Loan Bank system in the third quarter of 2025.
• Forward look: The swift resolution of Metropolitan and sale to First Independence are in line with FDIC Chair Travis Hill’s stated priority to resolve and sell failed banks quickly to prevent their value from eroding.

Metropolitan Capital Bank & Trust failed Friday, according to the Federal Deposit Insurance Corp., marking the first bank failure of 2026.

Processing Content

Read more at CREDIT&COLLECTIONSNEWS

Fed issues biennial report on debit card transactions in 2023: by Orrick, Herrington & Sutcliffe LLP

Recently, the Fed released its eighth biennial report on debit card transactions, providing an in-depth look at industry trends for 2023, pursuant to Section 920 of the EFTA. The report stated that payment card networks processed 100.7 billion debit and prepaid card transactions totaling $4.7 trillion in 2023, with interchange fees reaching $34.12 billion. The average interchange fee for covered transactions remained steady at 24 cents for single-message networks and 22 cents for dual-message networks, while exempt transactions averaged 52 cents.

The report further noted that network fees paid by acquirers and merchants rose to $12.95 billion, and dual-message transactions accounted for over 70 percent of total transactions, both by volume and by value. Fraud losses increased to 17.6 basis points of transaction value, with merchants absorbing nearly half of such losses, issuers bearing just over 25 percent, and cardholders accounting for 21.8 percent. The Fed highlighted that prepaid card transactions had the highest fraud rates, while single-message transactions had the lowest. The average authorization, clearing, and settlement cost for covered issuers was 4.1 cents per transaction, according to the report, and 80.1 percent of issuers had costs below the Regulation II interchange fee cap.

Read more at JDSupra

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Are Rewards Debit Cards Worth It? Here's How the Credit Card Versions Compare

Rewards-earning debit cards are becoming more popular, but are they worth it?

I've seen these cards popping up, too. There are quite a few out there that earn cash back, points or miles. Southwest Airlines, United Airlines and Wyndham Hotels & Resorts launched rewards-earning debit cards just last year.

But a lot of these debit cards come with fees or don't earn as much as their credit card counterparts. Let's take a look at Southwest since I called them out. Now, Southwest isn't a bank, so its debit card is powered by Sunrise Banks, N.A., and your funds are insured up to $250,000.

They have three personal credit cards, all with varying annual fees and corresponding benefits – the Southwest Rapid Rewards® Plus Credit Card, the Southwest Rapid Rewards® Premier Credit Card and the Southwest Rapid Rewards® Priority Credit Card. The debit and credit cards all earn bonus points every calendar year toward a Companion Pass, but the amount varies by card.

Read more at USNews

SNAP will have new work requirements starting Feb. 1 and many could lose benefits

New work requirements for the Supplemental Nutrition Assistance Program (SNAP) are set to go into effect on Feb. 1 and it could mean that millions of Americans lose their benefits.

Nearly 42 million Americans, including low-income families and vulnerable households, rely on the federal program to help pay for groceries or other household essentials.

However, under President Donald Trump's megabill that was signed into law in July, work requirements were amended for certain Americans to receive benefits for more than three months over three years, which is the time limit.

Food banks, pantries say they're still seeing surge even after SNAP benefits restored

Under the megabill, the upper age limit for those who need to meet work requirements was raised from age 54 through age 64 for the first time for able-bodied adults without dependents.

Read more at ABC NEWS

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Merchant Service Provider for Your Business EC

Most livable small cities in the US

For some, the hustle and bustle of big-city living can be overwhelming, but the slow pace of life in a rural small town may not provide enough excitement. Luckily, America is dotted with small cities – places with populations between 65,000 and 100,000 people – that provide the best of both worlds. These cities often have many of the same amenities found in large metropolises but offer a lower cost of living.

To see which small cities are most livable, SmartAsset analyzed data for 275 small cities. We compared these cities across various metrics related to dining and entertainment, healthcare, employment and poverty, and average commute times.

Key Findings

• Small cities in Washington and Michigan dominate the top 10. Half of the 10 most livable small cities are located in either Washington or Michigan, including the top two: Redmond and Sammamish, WA. Novi, MI places third, while Kirkland, WA and Farmington Hills, MI also make the grade.
• Seven of the 10 highest unemployment rates are in California cities. Tulare and Merced have 9.7% unemployment as of April 2023. Madera, Turlock, Manteca, Lodi, and Traci also place among the top ten highest unemployment rates, at 5.8% or higher. Meanwhile, Detroit and D.C. areas offer particularly low unemployment rates.

Read more at Markets Today

How a Brazilian digital bank is restructuring the fintech playbook – and why Wall Street is listening

Agibank is the second Brazilian fintech in recent weeks to opt for a US IPO over a local listing.

The trend suggests that foreign companies are increasingly viewing the US not just for valuation gains, but as a strategic destination for capital, branding, and global talent.

From São Paulo to Wall Street…

When a challenger bank born in São Paulo opts for Wall Street for its IPO filing over its home turf, it raises a question no growth investor can ignore: What does it take for a digital bank from an emerging market to play on the world’s biggest stage – and what does that tell us about the future of public fintechs?

Agibank is the second Brazilian fintech in recent weeks to take this route, just days after PicPay, also in São Paulo, announced similar plans. These moves point to a renewed appetite among Latin American digital lenders to tap global capital markets after years of dormant IPO activity in the region.

Read more at TEARSHEET.co

Contact Chuck.Sockol@mcrc.biz to discuss your recovery needs

Bitcoin falls below $80,000, continuing decline

Bitcoin, the world's largest cryptocurrency by market value, was down by 6.53% at $78,719.63 at 12:48 p.m. ET (1748 GMT) on Saturday.

On Friday, bitcoin fell to as low as $81,104, the lowest since November 21, while the U.S. dollar gained after former Federal Reserve Governor Kevin Warsh was selected as the next Fed chair. There are concerns that he might tighten up on cash in the financial system.

Ether also fell 11.76% to $2,387.77 on Saturday afternoon as cryptocurrencies have been struggling for direction since last year's tumble, having been left behind by big rallies in gold and stocks.

Cryptos are having a rough time in what was once hoped to be a golden era of flows and friendly regulation under President Donald Trump, with the market-leading bitcoin losing a third of its value since striking record highs in October.

Read more at REUTERS

These are the five best places to retire in the US

Finding a place to spend your golden years can be a daunting task, but a recent analysis has narrowed it down to five retiree-friendly cities to help in your search.

It’s no surprise that three out of the five best cities to retire are in Florida. In 2023, the Sunshine State gained a net total of 44,504 people aged 60 and over, according to a June study from finance site SmartAsset that analyzed U.S. Census Bureau data.

In an analysis published by WalletHub in September, the finance site compared the “retiree-friendliness” of more than 180 cities using 45 metrics in categories including affordability, activities, quality of life and health care.

Orlando, Florida

Orlando ranked number one in the study for its lack of taxes and access to quality geriatric care.

Read more at The Independent

Five small towns where America's wealthiest retire instead of the big cities

When you think about where the ultra-wealthy retire, your mind probably jumps to sprawling estates in Miami or penthouse apartments overlooking Central Park. Maybe you picture gated communities in Los Angeles or waterfront properties in Seattle. Here's the thing though: a growing number of America's richest retirees are skipping the metropolitan mayhem altogether.

They're choosing places you've probably never heard of. Small towns with populations that barely break five figures. Communities where everyone knows the local coffee shop owner by name and traffic jams don't exist. These aren't your typical retirement destinations, and that's exactly the point. Let's dive into five unexpected towns that have become magnets for wealthy retirees seeking something beyond the urban grind.

Read more at TravelBinger

National Taxpayer Advocate delivers Annual Report to Congress: IRS

finds taxpayer service was strong in 2025 but foresees challenges for taxpayers who encounter problems in 2026

IR-2026-15, Jan. 28, 2026

WASHINGTON — National Taxpayer Advocate Erin M. Collins today released her 2025 Annual Report to Congress, finding that taxpayers generally fared well in their dealings with the IRS in 2025 and that most taxpayers are likely to have a smooth experience in 2026. However, the report cautions the upcoming filing season is likely to present greater challenges for taxpayers who encounter problems.

“Among the reasons the 2025 filing season went well was that the IRS had its largest workforce in many years and faced no major tax law changes that required implementation during the filing season,” Collins writes. “Entering 2026, the landscape is markedly different. The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes mandated by the [One, Big, Beautiful Bill] Act, many of which apply retroactively and require significant IRS programming, guidance, changes to tax forms and instructions, and taxpayer education.”

Read more at IRS.GOV

Which US workers will be able to weather AI job displacement? BROOKINGS

Measuring US workers’ capacity to adapt to AI-driven job displacement

• Existing measures of AI “exposure” overlook workers’ adaptive capacity—i.e., their varied ability to navigate job displacement.
• Accounting for these factors, around 70% of highly AI-exposed workers (26.5 million out of 37.1 million) are employed in jobs with a high average capacity to manage job transitions if necessary. 
• At the same time, 6.1 million workers, primarily in clerical and administrative roles, lack adaptive capacity due to limited savings, advanced age, scarce local opportunities, and/or narrow skill sets. Of these workers, 86% are women. 
• Geographically, highly AI-exposed occupations with low adaptive capacity make up a larger share of total employment in college towns and state capitals, particularly in the Mountain West and Midwest.
• Policymakers concerned about AI’s job displacement potential may wish to focus attention on workers with the weakest adaptive capacity, who are likely to face the highest welfare costs if displaced.

Read more at The Brookings Institution

Americans in these 3 states are drowning in debt the fastest. 

Many Americans are under financial strain as they grapple with rising costs and carry growing balances on mortgages, credit cards and personal loans. Now, a new LendingTree study found that consumer debt is rising especially quickly in three states.

U.S. consumers increased their average total debt from $134,495 to $139,659 between Q3 2024 and Q3 2025 — an increase of 3.7%, or $5,164, according to the study.

Maryland experienced the largest increase, with an average total debt rising 10.3% from $170,251 to $187,750. Nevada followed, with an increase of nearly 10% and an average consumer debt of $163,999; and Idaho ranked third, with $161,941 in average consumer debt and a 9.3% increase.

Although these states saw the sharpest increases, consumer debt levels are rising nationwide. Missouri was the only state to record a decline, with average debt falling 0.3%. Meanwhile, average mortgage balances increased in 45 states, personal loan and credit card debts rose in 39 states, and average non-mortgage debt increased in 28 states.

Read more at MONEYWISE

We advise financial technology companies at the

start-up, product development, and product evolution stages. PS

Education is the equalizer between surviving and thriving

I didn’t find the financial services industry — the financial services industry found me.

I came to this profession as a second career. Before that, my life revolved around basketball. After college, I played professionally in the United States and Europe. That was my first career, my passion career and the path I expected to stay on. When injuries brought that chapter to an abrupt end, I entered a period of transition that forced me to take a hard look — not just at what I would do next, but also at how prepared I truly was for life beyond the court.

What I had at that point were discipline, resilience and a level of financial success. What I lacked was what most people call financial literacy. I now describe it differently.

Financial education was not part of my environment or my schooling when I was growing up. No one taught me how money actually works, how decisions compound over time, how risk shows up in real life or how financial choices today shape options tomorrow. Like many people, I earned money before I understood money.

Read more at INSURANCENEWSNET.COM

Switch Reward Card Aims to Transform Consumer Finance with Crypto-Integrated Debit and Rewards System

In a rapidly evolving financial landscape where digital assets and traditional banking increasingly intersect, Switch Reward Card is positioning itself as a next-generation payment solution aimed at bridging the gap between everyday spending and decentralized finance.  

A New Twist on Spending and Earning

Switch Reward Card presents itself not just as a debit card, but as part of a broader financial ecosystem that blends digital currency trading, rewards, and decentralized finance technologies. Users can manage funds in a mix of fiat and cryptocurrency — including holdings like Bitcoin and Ethereum — and transact globally with a single card or digital wallet.  

Read more at USA TODAY

The IRS is cracking down on a type of income earned by millions of people. Here's how to prevent a letter from Uncle Sam

The Internal Revenue Service is cracking down on a specific category of income that many Americans are increasingly reliant on: side hustles.

As of 2025, roughly 27% of American workers had some form of side income, according to a Bankrate survey (1). However, for many of these side hustlers the income generated from these gigs is negligible. In 2025, the median hustler earned just $200 a month.

If you think that income is too small for the IRS to bother with, think again. Funding unlocked by the Inflation Reduction Act of 2022 allowed the agency to modernize its operations and expand the use of sophisticated data analytics and artificial intelligence tools, according to TXCPA (2).

Read more at MONEYWISE

How Credit Unions Can Use Digital Gaming to Drive Deeper Engagement and Smarter Data

Digital engagement expectations are rising fast across financial services. Members today are shaped by consumer apps, personalized experiences, and instant feedback loops—and they bring those expectations with them when interacting with their credit unions. Static content, long forms, and one-way communication no longer hold attention the way they once did.

This is where modern fintech and digital experience gamification comes into play. By introducing light, instant digital gaming moments into member journeys, financial institutions can capture attention, increase participation, and gather richer behavioral data—without sacrificing trust or professionalism.

As a trusted voice in the credit union ecosystem, CUindependent.com regularly highlights how technology, innovation, and data-driven strategies help credit unions remain competitive while staying member-first. One emerging opportunity sits at the intersection of engagement and insight: using short, rewarding digital interactions to improve both member experience and decision-making.

Read more at CUIndependent

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Why Banks Are Rethinking Human Review in Dispute Operations

Banks have been using AI to flag suspicious transactions and score fraud risk for years. Those systems help prioritize work but still depend on human decision-making to move cases forward. Yet, fraud tactics continue to evolve, consumers have less patience for slow dispute resolution and chargeback volume keeps climbing, with global totals projected to reach 324 million by 2028 — a 2.7x increase over six years.

That combination is straining dispute operations. Manual reviews struggle to scale as transaction volume increases, regulatory requirements tighten and consumer expectations rise. Backlogs and delays increase operational costs and put customer trust at risk.

To address these pressures, financial institutions are turning to agentic AI. Agentic systems operate autonomously. Instead of flagging anomalies and stopping, agents can process disputes by gathering evidence, applying policy and acting within clearly defined boundaries.

Read more at The Financial Brand

Why the Future of Banking Lies at the Intersection of AI and the Blockchain

Until now, the adoption and management of artificial intelligence and the encroachment of blockchain technologies have been two parallel but separate trends with profound implications for banking. But those technologies are poised to converge, and financial marketers will increasingly find themselves working at the nexus where the two cross.

Marketers will be both empowered and challenged by these technologies, argues Michael Toner, innovation advisor at Profor and a breakout session speaker at The Financial Brand Forum 2026.

• Empowerment comes in the way AI tools will change financial marketing, from content creation to measurement of its potential and actual impact.

• Challenges will come from dealing with AI fakery — including false communications purporting to be from the marketers’ own institutions — but also in devising ways to persuade customers of the benefits of moving to blockchain-based payments, credit and investments.

Read more at The Financial Brand

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