Under specific circumstances, the United States Postal Service is now rounding purchases to the nearest nickel. This is a result of the U.S. Treasury’s stopping the manufacture of new pennies in 2025. Prior to the decision to discontinue the penny, circulation had slowed because people typically saved their change until the monetary value added up and the coins were cashed in.
Many facilities where banks deposit coins for later use have also stopped accepting pennies, further adding to the lack of the 1 cent coins in active circulation. Because of this, businesses have started to notice a lack of availability of the copper-colored coin and, as a result, they are not always available to give as change when a customer pays with cash. This has led to the USPS’s decision to round certain purchases to the nearest 5 cents.
When a customer pays in cash, does not have exact change, and the local post office does not have any pennies available, the transaction will be round to the nearest nickel. If the customer is owed 1, 2, 6, or 7 cents, the change due will be rounded down. If the amount is 3, 4, 8, or 9 cents, the change due will be rounded up. In the event the total cash purchase is less than 5 cents, the amount will be rounded up to 5 cents.
These rules do not apply to check, debit, or credit card transactions. Despite the U.S. Mint stopping production of pennies on November 12th, they are still legal tender and will be accepted as payment.
