Businesses Adapt as Penny Phase-Out Challenges Mount

Retailers and others handling cash transactions are rounding change to the nearest nickel as the U.S. Mint stops producing pennies.

Published on Feb. 13, 2026

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Some Maine retailers and others who handle cash transactions are rounding change to the nearest nickel in the absence of pennies, as the U.S. Mint has stopped producing the copper-coated, mostly zinc coins. The impacts have been tempered so far, especially since people increasingly use credit or debit cards and mobile payment options, but cash transactions still account for 14% of all consumer payments. Many businesses, including Rosemont Market & Bakery in Portland, have adopted a rounding practice recommended by the National Council of State Legislators and the U.S. Department of the Treasury.

Why it matters

The penny phase-out is creating challenges for retailers and others who handle cash transactions, as they must adapt to the limited availability of pennies. While the impacts have been modest so far, the change highlights the ongoing shift away from cash payments and the need for businesses to be flexible in accommodating customer preferences and government policies.

The details

Rosemont Market & Bakery in Portland, which has six locations in southern Maine, was surprised last December when it could not order pennies from its local bank. The company has since adopted an automatic rounding system for cash transactions, rounding up or down to the nearest nickel. Other businesses, including the city of Auburn, have also begun rounding change due to the limited penny supply. The U.S. Mint stopped producing pennies in November, citing the high cost of production relative to the coin's low purchasing power.

  • In November 2025, the U.S. Mint stopped producing pennies.
  • In December 2025, Rosemont Market & Bakery was notified it could no longer order pennies from its local bank.

The players

Rosemont Market & Bakery

A local grocery store chain with six locations in southern Maine that has adopted an automatic rounding system for cash transactions due to the limited availability of pennies.

National Council of State Legislators

An organization that has recommended a rounding policy for businesses to follow as the U.S. Mint phases out the production of pennies.

U.S. Department of the Treasury

The federal agency that has advised retailers to continue accepting pennies and providing penny change for cash transactions while the coin remains in circulation.

ECRS

A retail automation company based in Boone, North Carolina that has provided software updates to help its clients, including Rosemont Market & Bakery, automatically round change on cash purchases.

Retail Association of Maine

A trade association that has shared the recommended rounding policy with its members and noted that many retailers have been rounding purchases for a while to help reduce the need for change.

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What they’re saying

“We can't serve our customers if we can't make exact change. About 15% to 20% of our customers use cash. It's a small portion of our sales, but it's important.”

— Ben Davis, Director of Finance, Rosemont Market & Bakery

“It ends up working out.”

— Curtis Picard, President and CEO, Retail Association of Maine

“Businesses need to start adjusting their prices so they don't need to round up or round down for cash purchases.”

— Al Bean

What’s next

The city of Auburn has warned residents that it will begin rounding change for cash payments on taxes and other fees once its current supply of pennies is depleted.

The takeaway

The penny phase-out is forcing businesses to adapt their cash handling practices, highlighting the ongoing shift away from cash payments and the need for flexibility in accommodating customer preferences and government policies. While the impacts have been modest so far, the situation underscores the challenges businesses face in maintaining efficient operations as the use of physical currency declines.