The End of the Penny
đź•’ 2-minute read
Change is coming—literally. Earlier this year, the U.S. Department of the Treasury announced that it will stop producing pennies, marking the end of an era for America’s smallest coin. While this may seem like a minor shift, the impact on businesses that deal with cash and coin transactions could be significant. If your business relies on handling change or coin inventory, now is the time to plan ahead. Here’s what you need to know about the penny phase-out.
Why Is the Penny Going Away?
Producing a penny costs more than its actual value, and usage has steadily declined with the rise of digital payments. In response, the U.S. Treasury made the decision to discontinue production in an effort to reduce costs and modernize currency operations.
How Penny Distribution Will Change
Let’s break it down:
🏛️ The Federal Reserve’s Role
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The U.S. Mint manufactures coins, including pennies—at least, until now.
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The Federal Reserve is responsible for distributing these coins to banks, credit unions, and other financial institutions.
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Once a local coin distribution site runs out of penny inventory, that location will no longer fulfill penny orders.
đź’° Penny Deposits
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Policies for accepting penny deposits will vary depending on the location.
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Some Federal Reserve coin distribution sites may still accept penny deposits, even if they are no longer filling penny orders.
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Others may stop both services at the same time, like Rave Financial as of October 2025.
📦 Penny Orders
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When a distribution center’s inventory is depleted, it’s gone for good—no more penny orders will be processed from that site.
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Businesses placing coin orders through the FedCash Services application (via FedLine Web® or FedLine Advantage®) will need to monitor updates.
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If you receive an error while placing an order that includes pennies, you’ll need to remove the penny line item and resubmit the order or try another ordering location.
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If you’re placing large orders near deadlines, pennies can be submitted separately from other denominations without incurring additional fees.
What This Means for Your Business
The end of penny production doesn’t mean immediate chaos—but it does mean you need to start preparing now, especially if your business frequently deals in coin transactions. At Rave Financial, we’re committed to helping you navigate this transition smoothly.
Here’s how you can stay prepared:
âś… Take inventory of your current penny usage
Evaluate how often you give pennies as change or receive them in deposits. Can your pricing be rounded or adjusted to reduce dependency?
âś… Plan for reduced availability
As inventories dwindle, expect longer wait times or complete unavailability in some areas. Build in flexibility to your coin ordering process.