A Common Cents Change.

The penny is being phased out by the U.S. Government. Here’s what you need to know

The U.S. Department of the Treasury has announced that it will stop producing new pennies starting in early 2026. While new pennies won’t be produced, existing pennies will remain legal tender, and you can still use them for purchases and deposits.

Table of Contents:

• Why is the U.S. Treasury discontinuing pennies?

• Will pennies still be accepted as payment?

• Can I still deposit pennies at Mercantile Bank?

• Will I be able to get pennies in my cash transactions and change orders?

• How will cash transactions work without pennies?

• Should I stock up on pennies now?

• Do I need to update my business systems?

• Where can I learn more?

Here’s what this means for you and how Mercantile Bank is preparing for a smooth transition.

Why is the U.S. Treasury discontinuing pennies?

The decision is based on two main factors:

• The cost to make and distribute a penny is nearly four cents.
• Cash usage is declining as more people choose electronic payment options.

Will pennies still be accepted as payment?

Yes! Pennies will remain legal tender. You can continue to use them for purchases and deposits.

Can I still deposit pennies at Mercantile Bank?

Absolutely. We will continue to accept pennies for deposits just like before.

Will I be able to get pennies in my cash transactions and change orders?

Not for long. Banks can only order from existing Federal Reserve inventory until supplies run out. Once that happens, pennies will no longer be available for cash transactions and change orders.

How will cash transactions work without pennies?

Cash transactions will be rounded down to the nearest five cents. This applies only to cash payments—electronic transactions will remain unchanged.

Should I stock up on pennies now?

No, we ask that you do not order or hold extra supplies. Inventory will naturally phase out over time.

Do I need to update my business systems?

If you accept cash payments, you may need to adjust your Point of Sale (POS) system to handle rounding. We recommend planning ahead.

Where can I learn more?

We’ll continue to share updates from the U.S. Treasury and Federal Reserve. Check back on our blog or visit Treasury.gov for official information.