The future of the U.S. penny has become a real conversation again. The U.S. Mint reported that in 2024 it cost 3.69 cents to make a single penny (source), more than triple its face value. It also confirmed that producing pennies that year created a loss of about $85.3 million for the federal government. And in a major milestone, the Mint held the ceremonial strike for what it announced as the final production run of the circulating one-cent coin (official press release).
Nothing is official yet, but the direction is clear. When the penny disappears, retailers will need to adjust quickly and your POS will be at the center of that change. Many older systems can’t handle automated cash rounding cleanly. Erply POS can, and the newer FLAX version goes even further.
Below is a clear Q&A to help retailers understand what a penny-free environment means and how to prepare. For more details, explore our resources.
Q: Has the U.S. government officially eliminated the penny?
No. The penny remains legal tender. Congress would need to pass a law to retire it. But the Mint’s data and the final ceremonial strike show that the penny’s long-term future is in question. Retailers shouldn’t assume they’ll get a long runway when the change happens.
Q: How quickly would retailers need to adjust?
There’s no formal U.S. timeline yet. But when Canada removed its penny, retailers had only a short transition window. If the U.S. handles it the same way, any POS that can’t handle automated rounding will create checkout problems from day one.
The safest move is to ensure your POS can handle rounding now — before the rush.
Q: What changes for cash transactions if the penny is removed?
- Only the final cash payment amount changes.
- Card and digital payments stay exact
- Item prices stay the same
- Discounts apply normally
- Sales tax is calculated the same way
- The final cash total rounds to the nearest five cents
This is a small change for customers, but only if your POS handles it correctly and consistently.
Q: Do retailers need to reprint price labels or change SKUs?
No.
Price tags, shelf labels, menus, barcodes, and online pricing all stay the same. Rounding applies only to the final cash total at payment. There’s no need to re-tag or reprice anything.
Q: How will receipts need to show rounding?
Receipts should clearly display the rounding adjustment so customers know why the final cash amount may differ by a few cents. The rounding should appear as its own line item, separate from tax, discounts, and the subtotal. This keeps the transaction transparent and prevents confusion at the counter.
Erply FLAX POS already handles this correctly. When rounding is applied, the receipt prints:
- The exact itemized total
- Tax as usual
- A dedicated “Rounding Adjustment” line
- The final amount due for cash payments
This simple change makes the transition easier for staff and reassures customers that nothing inaccurate or hidden is happening with their totals. For real-world examples, see our case-study.
Q: Does rounding affect how sales tax is calculated?
Sales tax is calculated exactly the same as today. Rounding happens after tax is applied. This keeps tax reporting stable and avoids compliance issues.
Q: How would the POS send rounding information to accounting systems like QuickBooks?
The rounding amount is sent as a small cash variance. The POS keeps revenue and tax exact, and passes the rounding as its own line in the daily summary or deposit record. Accounting sees it as a minor adjustment tied to cash, not a change to sales.
Q: What else should retailers prepare for?
- Customer perception: Receipts should show the rounding line so there’s no confusion.
- Staff training: When the POS handles rounding, training is minimal.
- Mixed tenders: If a customer pays partly with cash and partly with card, only the cash portion is rounded. Your POS must handle this correctly.
- Promotions and discounts: These apply the same way they do today. Rounding is the final step.
- Chainwide consistency: Multi-store chains need one rule across every store. This must be enforced at the system level.
Q: How does Erply FLAX POS handle a penny-free environment?
Erply FLAX POS was built with future changes like this in mind. When rounding is enabled, FLAX:
- Rounds only the final cash total
- Leaves item prices and tax untouched
- Prints a clear rounding line on receipts
- Applies consistent rules across every register and location
- Handles mixed tender payments correctly
- Tracks rounding in reporting and reconciliation
But FLAX is more than a rounding tool. It’s built for customization. Retailers rely on it for features such as:
- Custom rounding rules
- Donation prompts at checkout
- Surcharge logic
- Special flows for regulated items
- Location-specific policies
- Tailored behavior for unique business processes
If your stores need special rules, Erply can support them. Most older POS systems can’t.
Q: What should retailers do right now?
The most important step is simple:
Confirm whether your current POS supports automated cash rounding.
If it doesn’t, it will become a problem as soon as the penny officially disappears.
A quick checklist:
- Can your POS round the final cash total automatically?
- Does it display rounding clearly on receipts?
- Does it handle mixed payments correctly?
- Does reporting show rounding activity?
- Can you enforce a single rounding rule across all stores?
If any answer is “no” or “not sure,” it’s time to plan an upgrade before the market rushes to do the same. For more on costs, see our pricing page.
Prepare Your Stores Now
The economics behind the penny point toward its eventual removal. Retailers using outdated POS systems will feel the impact the moment rounding becomes mandatory. Erply POS is ready for that future. Erply FLAX POS takes it further with flexible rules, clearer controls, and the ability to adapt to your exact workflows.
Book a call to see how Erply works and learn how to switch to FLAX now.