What Does the End of Penny Production Mean for You or Your business?

To reduce excess government spending, President Trump ordered the U.S. Treasury to stop producing new pennies in early 2026. The U.S. isn't alone in this decision - Australia and Canada stopped minting pennies years ago. Here's what you need to know about the upcoming penny retirement and its effect on cash transactions.

As Penny circulation continues to decline, we're here to help you stay informed during the transition.

• The Federal Reserve will cease fulfilling penny orders when localized inventory is depleted.
• This will impact change orders at all Bank of the West locations as well as other financial institutions.
• Requests for rolls of pennies may be denied due to limited supply.

Businesses may experience coin shortages, complicating transactions that require exact change. With fewer pennies in circulation, businesses should proactively update their cash-handling procedures, while individuals are encouraged to use digital payment methods such as direct deposit and card-based transactions.

• To navigate coin shortages, businesses can consider rounding cash transactions and promoting electronic payment options-including direct deposit, debit or credit cards, and digital platforms like Zelle.

• Ensure customers are informed about the penny shortage and any changes in payment practices by posting signage and offering clear communication at the point of sale.

• Encourage use of electronic payments to reduce customer inconvenience as they will remain unaffected by the phase-out of the penny.

• Transactions made with credit or debit cards will continue to be processed at their exact amounts, without any rounding.

We encourage all individuals and businesses to consider the impact of this change. Our institution is working closely with the Federal Reserve and other key stakeholders to help ensure a smooth transition as the penny is phased out.

Pennies will remain legal tender and may continue to be used for cash transactions indefinitely, and businesses are encouraged to keep accepting them as payment.

Under the Common Cents Act (S.1525), once pennies are removed from circulation, cash transactions will be rounded to the nearest five cents.

The standard rounding guidelines are as follows:

• If the final digit of the total ends in 3, 4, 8, or 9 the amount is rounded up.
• If it ends in 1, 2, 6, or 7 the amount is rounded down.
• Totals ending in 0 or 5 are not rounded.

This change will only affect cash transactions. Debit cards, credit cards, checks, and electronic payments will continue to process exact amounts.

As the U.S. phases out penny production, we recognize the impact this change may have on businesses, banks, and everyday transactions.

• We're closely monitoring penny supply at our locations and working to manage it efficiently.
• We'll continue to provide resources and guidance as new information becomes available.

Thank you for your continued partnership and trust. We're here for you.