This study measured the response-locked event-related potential during a flanker task with performance-based monetarily rewarding and punishing trials in 37 undergraduate students separated into high- and low-impulsive groups based on a median split on self-reported Barrett Impulsiveness Scale. The high-impulsive group had a smaller medial frontal error-related negativity (ERN) on punishment trials than the low-impulsive group. The medial prefrontal neural system of behavior monitoring, indexed by the ERN, appears less sensitive to punishment signals in normal impulsivity. This reduced punishment sensitivity in impulsivity, a personality variation associated with several mental and personality disorders including ADHD and substance abuse may be related to the tendency to select short-term rewards despite potential long-term negative consequences in these individuals.