The Penny’s Last Stand in the U.S.

After more than two centuries in circulation, the American penny is officially being phased out.
The final new one-cent coins were minted in late 2025, marking the end of an era that stretches
back over 230 years. The simple reason is economics: it now costs several cents to produce a
single penny. That imbalance made continuing production unsustainable.

For firearms retailers, this might sound like a small, almost laughable change. But in day-to-day
retail operations, especially in shops that still handle a fair amount of cash, this will create real,
practical shifts at the counter.

The penny is not immediately “illegal.” It remains legal tender. But once distribution dries up,
change-making will no longer function the way it has for decades. That means retailers need to
prepare now instead of scrambling later.

Why the Penny Is Being Retired

This decision wasn’t sentimental. It was financial.

The cost to produce a penny has steadily climbed until it became wildly inefficient. When it costs
multiple cents to make a single cent, no business owner would keep that process alive. This is
simply the government finally applying the same math every retailer already lives by.

There’s also a reality shift in how people pay. Digital transactions, cards, mobile wallets, and tap-
to-pay have reduced demand for physical coins. A penny today has almost no real purchasing
power. It often sits in jars, drawers, and cup holders instead of moving through the economy.

Other countries made this transition years ago and proved it can work. The U.S. is simply
catching up.

How This Will Affect Daily Transactions

The biggest operational change will happen with cash transactions.

Once pennies are no longer available, cash totals will be rounded to the nearest five cents. This
only applies to cash. Electronic payments will still be charged to the exact cent.

Here’s how rounding generally works:

• Totals ending in .01 or .02 round down

• Totals ending in .03 or .04 round up

• Totals ending in .06 or .07 round down

• Totals ending in .08 or .09 round up

• Totals ending in .00 or .05 stay the same

This creates a fair back-and-forth where sometimes the customer benefits, sometimes the store
absorbs the difference. In real-world terms, this is usually a penny or two.

Retailers may also choose, especially early on, to always round down in favor of the customer to
avoid friction and build goodwill. That’s a strategic business decision, not a requirement.

There is also a speed benefit here. No more hunting for pennies. No more slowing transactions
over a single cent. At busy counters and gun shows, this actually improves flow.

Current Challenges Retailers Need to Be Aware Of

One of the biggest issues is that there is no single, nationwide rounding law yet. That creates a
temporary gray area for retailers.

Federal agencies stopped production, but formal rounding rules haven’t been standardized
everywhere. This leaves retailers needing to act cautiously.

Some regions are already experiencing penny shortages, and retailers in those areas have had to
adapt early. Common approaches include:

• Posting signage explaining rounding

• Rounding down to favor customers

• Asking for exact change when possible

Until clearer laws are passed, the safest approach for retailers is transparency and fairness.
When in doubt, protect the customer and protect your reputation.

How Firearms Retailers Should Prepare Now

Talk to Your Bank or Cash Provider

Find out how long your bank expects to keep pennies in circulation. Some banks are already
limiting penny transactions. You need to know what your timeline looks like before this becomes
an emergency.

Ask:

• Will they still distribute pennies?

• Will they still accept penny deposits?

• When do they expect supply to dry up?

This affects how fast you must transition.

Update and Test Your POS Settings

Your point-of-sale system needs to be ready to handle rounding automatically.

Make sure:

• Rounding is enabled only for cash

• Card and digital payments remain exact

• Test multiple scenarios before going live

This is where having modern retail software matters. And the good news is this:

Coreware’s point-of-sale system is already equipped with robust rounding functionality.

That means our users are already positioned to handle this change smoothly. We’ll be sharing
more guidance soon on how to enable and manage those settings.

Train Your Staff Before Customers Ask Questions

Your team needs confidence before this happens.

Train them on:

• How rounding works

• How to explain it calmly

• What to say when customers question it

A simple script can prevent 90% of conflict:

“Because pennies are no longer produced, we now round cash totals to the nearest nickel.
Sometimes that helps you, sometimes it helps us, but it always stays within a cent or two.”

Confidence at the counter prevents tension in the store.

Use Clear Signage and Customer Communication

Do not make this a surprise.

Post simple notices at the register explaining:

• Pennies are no longer being produced

• Cash totals are rounded

• Card payments remain exact

If you have social media or email lists, give customers a heads-up there. When customers feel
informed, they feel respected.

Manage Your Remaining Pennies Strategically

Don’t dump them immediately. Use them strategically during the transition.

At the same time, avoid hoarding pennies that you won’t be able to deposit later. Phase them out
slowly. Shift your drawer management toward having more nickels.

You can even turn this into a promotion:

Bring in pennies and get a small discount. It clears out supply and builds engagement.

Stay Updated on Legal and Industry Guidance

Follow guidance from:

• Retail trade groups

• Firearms industry organizations

• State commerce departments

If your state publishes specific rules, follow them immediately. Until then, fairness and
transparency are your strongest protection.

Final Thoughts: Turning Small Change Into a Smart Move

This is not a crisis. It’s an operational adjustment.

Retailers who prepare early will barely feel the impact. Those who wait will experience
frustration at the counter.

This change will:

• Speed up transactions

• Simplify cash handling

• Reduce unnecessary overhead

And again, Coreware users are already positioned well. Our POS system was built with these
kinds of operational shifts in mind. We’ll share additional guidance with our retailers soon so
everyone can move confidently into this penny-free environment.

The penny had a good run. Now it’s time to run your counter smarter, faster, and more efficiently.
Make every nickel count.