Payments

Redesigned nickel could impact vending

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July 22, 2026

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The U.S. House of Representatives has passed the Common Cents Act, which would formally end penny production and establish rules for rounding cash transactions when pennies are unavailable, according to a report in The Hill.

Retailers are already rounding cash change to the nearest five cents, increasing the importance of nickels in vending machines and other cash-operated equipment.

The legislation would also allow the Treasury Department to test a less expensive nickel made with zinc and nickel. Any redesigned coin would be required to function in existing vending machines, an important consideration because coin mechanisms identify currency using its dimensions, weight and metal properties. Current nickels cost 13.31 cents each to produce, marking the 20th consecutive year that production costs exceeded their face value.

A change in metal composition could require extensive compatibility testing across vending machines, coin counters and other automated payment equipment. Nickels and pennies remain legal tender, and no redesign can proceed unless the bill passes the Senate and is signed into law. The measure's prospects in the Senate remain uncertain.