Where Do America’s 114B Pennies Go After Minting Stops?

  • The U.S. will stop penny production soon, but pennies will remain legal tender and in use for years. They wonder, where do America’s 114B pennies go?
  • Retailers will gradually round cash transactions to the nearest nickel as pennies become scarce.
  • Digital payments will continue to include exact penny amounts without rounding.

The U.S. Treasury announced it will stop making pennies, ending a 230-year tradition. However, the penny will not vanish from daily life right away. The coin will remain legal money and will still circulate at stores nationwide. Many retailers will continue accepting pennies for some time, raising the question: where do America’s 114 billion pennies go?

Stores Expect to Keep Using Pennies, Following Canada’s Experience

Canada stopped making pennies in 2012, yet it didn’t disrupt daily transactions. Jeff Lenard from the National Association of Convenience Stores says Canadian retailers saw no major changes in the first year after production ended. Convenience stores handle a lot of cash, about 32 million transactions every day. That equals roughly 20% of their total sales. Based on Canada’s example, U.S. stores expect to keep using pennies until the supply naturally shrinks.

Pennies Remain Everywhere, But Many People Don’t Use Them

The U.S. has about 114 billion pennies in circulation. Many people store them in jars, drawers, or leave them behind at checkout counters. These coins often go unused. Where do America’s 114B pennies end up? The Treasury calls pennies “severely underutilized.” Most shoppers don’t carry pennies or bother to use them when paying. This situation slows down penny circulation even though they exist in huge numbers.

Retailers Will Gradually Start Rounding Cash Payments to the Nearest Nickel

Although stores won’t run out of pennies immediately, banks will eventually stop distributing new rolls of pennies. When that happens, retailers will begin rounding cash transactions up or down to the nearest five cents. This change depends on each store’s policy, not on government rules. Retailers want to serve customers smoothly, so they will decide when to start rounding.

Digital Payments Will Still Use Exact Penny Amounts

Credit and debit card purchases will continue to include exact amounts down to the penny. Only cash payments will face rounding adjustments. This means customers who pay electronically won’t notice any difference. The change only affects people who use coins and cash at checkout.

Canada Still Accepts Pennies, and So Will Most U.S. Stores

Canada stopped making pennies more than a decade ago, but pennies remain legal and accepted. Canadian stores still let customers pay with pennies if they want to. Lenard believes most U.S. stores will follow the same approach. They won’t refuse pennies if customers choose to use them. After all, “never lose a customer over a penny” remains good advice in retail.

Conclusion: Pennies Won’t Disappear, but Their Use Will Decline Slowly

Even though the U.S. will stop making pennies soon, the coins won’t disappear. They will continue as legal money for years. Stores will still accept pennies, but cash payments will gradually be rounded. Digital payments will keep exact amounts. Like Canada’s experience shows, the transition will happen slowly and smoothly. Pennies will stay part of daily life for quite some time. Meanwhile, people might keep asking, where do America’s 114B pennies circulate?

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