Retailers and banks are working through how to handle everyday transactions as the U.S. stops producing pennies, a decision expected to save millions but raise practical challenges, according to Arkansas Business.
President Donald Trump ordered Treasury Secretary Scott Bessent in February to halt minting the one-cent coin, which costs 3.69 cents apiece to make. The Treasury estimates annual savings of about $56 million.
With 114 billion pennies still in circulation, consumers may not feel an immediate impact. But as coins disappear, stores will need to round cash totals to the nearest nickel. Sales tax complicates matters because many states, including Arkansas, calculate tax to the penny, Arkansas Business reported.
Scott Hardin of the Arkansas Department of Finance and Administration said the state has not issued guidance. Attorney Jake Fair of Wright Lindsey Jennings said states are likely to craft their own rules until Congress acts. About 10 states already have policies, but Arkansas is not among them.
Banks are also preparing. Jon Harrell, CEO of Generations Bank of Rogers, said the financial effect should be minor, but updating systems will take time.
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