The incredible shrinking penny (circulation)
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The incredible shrinking penny (circulation)
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The discontinuation of penny production in 2025 caused operational challenges for banks when the regional Federal Reserve banks said they would stop accepting pennies for deposit at coin terminals -- accelerating the circulation shortage that's posing challenges for retailers. Today, the Fed reversed that decision, resuming deposits effective Jan. 14. On the latest episode of the podcast, ABA payments expert Steve Kenneally walks through the Fed's decision, the operational challenges the penny phaseout poses to retailers and banks, ABA's regulatory and legislative advocacy for improvements to the handling of coinage reform and ABA resources for banks, frontline staff and consumers.
- View ABA resources on the penny phaseout.
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