The humble penny, a small coin often overlooked and undervalued, is unexpectedly making headlines as it quietly exits the stage after more than two centuries in American currency. The U.S. Mint produced its final penny on November 12, 2022, ending a 230-year run. This decision was driven largely by economic inefficiency: it now costs about 3.69 cents to produce each one-cent coin, a clear loss to taxpayers. Yet, paradoxically, the penny’s disappearance has sparked a nationwide shortage, causing disruptions in everyday transactions and prompting businesses and consumers alike to rethink the coin’s role and value.
For years, the penny has been seen as nearly obsolete. It can’t buy anything substantial anymore—not even a gumball—and most people tend to toss pennies into jars or drawers, where they accumulate as forgotten clutter. Unlike quarters or dollars, pennies often lie abandoned on sidewalks or get lost in the cracks of furniture. This neglect led many to believe the penny was no longer relevant. However, now that production has ceased, stores across the country are facing a shortage of pennies, complicating cash transactions and leaving some businesses scrambling for solutions.
The shortage has become so acute that some retailers are actively encouraging customers to bring in their pennies, sometimes even offering incentives. For example, grocery chains like Price Chopper and Market 32 recently held “Double Exchange Days,” where customers could exchange their pennies for shopping vouchers worth twice the coin’s face value. Similarly, Giant Eagle held a one-day event on November 1, offering gift cards worth twice the amount of pennies customers brought in. These promotions reflect a growing concern among retailers as they struggle to provide exact change in the absence of adequate penny supplies.
A survey by the Retail Industry Leaders Association revealed that thousands of stores nationwide are now penny-deprived, and many are appealing to the federal government for help. This shortage has practical implications: without pennies, cashiers cannot always provide exact change, causing frustration among customers and complications for businesses. Some large companies have already outlined their plans for handling cash transactions amid the shortage. McDonald’s, for instance, said it would round prices either up or down to the nearest nickel, while Wendy’s, Kwik Trip, and GoTo Foods (which owns Auntie Anne’s, Cinnabon, Jamba, and Carvel) have committed to rounding down to the nearest nickel to benefit customers. Kroger encourages customers to use exact change but continues to accept pennies when available.
While rounding down is consumer-friendly, it comes at a cost to retailers. The National Association of Convenience Stores (NACS) estimates that nationwide, stores could lose more than $1 million per day due to rounding down. To mitigate these losses, the NACS is urging lawmakers to enact legislation allowing businesses to round transactions up to the nearest nickel. Until clear federal guidelines or regulations are established, the situation remains unsettled, leaving businesses to navigate the penny shortage on their own.
Despite the current chaos, experts believe the penny’s retirement will have minimal long-term effects on consumers and businesses. Mark Stiving, CEO of Impact Pricing, points to New Zealand’s experience as an illustrative example. New Zealand phased out its penny years ago and implemented a rounding system where prices remain at conventional “.99” endings but totals are rounded to the nearest five cents during checkout. This method preserved familiar pricing strategies while accommodating the absence of the penny.
For those holding onto their pennies, the coin may not be a treasure trove, but it’s not entirely worthless either. Most people’s collections amount to just a few dollars if converted, but it’s money nonetheless. Various options exist for turning those coins into usable cash. Coinstar kiosks, found in many grocery stores, allow customers to deposit coins and receive a cash voucher in return. However, these machines charge a service fee of nearly 13%, which means exchanging $100 in coins yields about $87. Alternatively, many banks and credit unions accept coins, either through coin-counting machines or by having customers roll their pennies in paper wrappers. Policies vary regarding fees and acceptance criteria, such as requiring coins to be machine-counted to prevent counterfeit or foreign coins from circulating.
If you prefer to keep using pennies, some retailers still accept them, and a few even sell items for a penny occasionally. Dollar General, for example, features a weekly Penny List with deeply discounted items available for just one cent, often including out-of-season or discontinued merchandise. Coupon websites like