Cannabis shops across the US face a sneaky price hike as the penny shortage forces quick cash changes. With cash still key for many buys, dispensaries round prices to the nearest nickel, and that small shift adds up fast for customers and stores alike. This issue hits hard in an industry already tight on margins, sparking worries about fair deals and daily costs.
Many cannabis buyers stick to cash despite new debit options. Operators say about one third of sales happen this way, and in some spots, it tops half. This reliance stems from federal rules that limit card use, keeping cold hard cash in play.
The penny shortage changes everything for these transactions. Without enough one cent coins, shops must adjust on the fly. A busy day with hundreds of cash sales turns small rounding calls into big money matters.
Stores in states like California and Colorado report the pinch first. Owners there note longer lines as clerks explain the new rules. One manager shared how exact change requests now fill the air, slowing service.
How the Penny Phase-Out Unfolds
The US Mint stopped making new pennies on November 12, 2025, after costs outran value. President Donald Trump pushed the move to save taxpayer dollars, ending a 232 year tradition. Now in February 2026, supplies dwindle nationwide.
The Treasury urges rounding cash totals to the nearest five cents. For example, a 99 cent item jumps to a dollar if rounded up, or drops to 95 cents if down. This rule aims to keep things simple without pennies.
Retailers feel the heat as circulation slows. Banks report fewer pennies in vaults, and the Federal Reserve scrambles to boost coin flow. In Illinois, shops already post signs asking for exact change to ease the strain.
States step in with laws too. A bill in Mississippi outlines rounding guidelines for cash deals, filed by Senator Johnny DuPree in January 2026. Such steps help but leave room for confusion.
Rounding Hits Cannabis Wallets Hard
Picture a typical cannabis buy: a customer grabs a pre roll for $12.99 and pays cash. Without pennies, the store rounds to $13 or $12.95. If up, the buyer pays an extra cent; if down, the shop loses it.
Over a day, this repeats. A dispensary with 300 cash sales might face hundreds of cents in shifts. For the industry, that means real dollars lost or gained, eating into slim profits. Data from the National Conference of State Legislatures in November 2025 shows rounding could sway sales tax too, adding another layer.
Cannabis firms already juggle high compliance costs. The market hits nearly $47 billion in 2026, per Flowhub stats from early this year. Yet cash woes amplify pressures in places like New York, where adult use boomed.
To show the math, consider this simple table on rounding effects for common items:
| Item Price | Rounded Up | Extra Cost to Buyer | Rounded Down | Savings to Buyer |
|---|---|---|---|---|
| $9.99 | $10.00 | $0.01 | $9.95 | $0.04 |
| $12.49 | $12.50 | $0.01 | $12.45 | $0.04 |
| $25.01 | $25.00 | -$0.01 | $25.00 | $0.01 |
| $7.96 | $8.00 | $0.04 | $7.95 | $0.01 |
This setup highlights how choices favor one side or the other. Stores often round down to keep customers happy, but that cuts revenue.
Dispensaries Adapt to the Crunch
Owners push for solutions amid the mess. Some switch to debit more, cutting cash needs. Blaze POS systems now feature auto rounding to the nearest nickel, easing clerk stress.
Innovation steps up as cash lingers. In Portland, Maine, shops train staff on quick math for change. Federal attention grows too, with calls for national rounding laws from groups like the National Association of Convenience Stores in October 2025.
Yet challenges persist. A Cannabis Risk Manager report from hours ago notes tight margins make every cent count. Operators in Texas worry about tax impacts, as the state comptroller warned in early 2026.
Here are key ways dispensaries respond:
- Post clear signs on rounding rules to avoid surprises.
- Stock up on nickels from banks early.
- Offer loyalty perks for debit users to shift habits.
- Track daily losses from rounding in ledgers.
These moves help, but full change takes time. The Richmond Fed’s brief in 2025 estimated rounding might raise overall costs slightly for shoppers, urging smart picks.
As pennies fade, cannabis retail pricing faces a turning point. This shortage spotlights the need for better payment tools in a growing market. Stores that adapt quick will thrive, while others risk customer trust. Buyers save by going card where possible, dodging the nickel trap.