The U.S. government is beginning a gradual phase-out of the penny, citing rising production costs and its declining use in everyday transactions. Officials say the move will reduce costs while simplifying cash purchases for consumers and businesses alike.
As pennies are removed from circulation, cash transactions will be rounded to the nearest five or zero cents. The rounding applies only to the final purchase total, not individual items, and follows standard rounding rules. Some totals will round up, while others will round down. Credit cards, debit cards, and other electronic payments will continue to be charged to the exact amount and are not affected by the change.
Officials emphasize that rounding does not increase prices or create additional charges for customers. Over time, the rounding process balances out, since amounts may be adjusted either up or down. The price of goods and services remains unchanged, with only the handling of cash change being different.
The decision to phase out the penny comes as it now costs more than one cent to produce each coin, while its usefulness in modern transactions has steadily declined. Federal officials say the change improves efficiency and keeps transactions fair for consumers.
Customers who wish to avoid rounding altogether are encouraged to use credit or debit cards or provide exact change when paying with cash.
For more information, residents can contact Iliza Sebikali, City of Irving Treasury Manager, at (972) 721-4633. The City of Irving says it appreciates the public’s understanding as this national change is rolled out, noting the goal is a smooth and transparent transition.
