Penny pinching
Businesses dealing with discontinuation of the coins
On Nov. 12, the final U.S. pennies were struck at the U.S. Mint in Philadelphia.
Why? The cost to manufacture the one-cent coin 无毛视频� which had been in circulation since 1793 无毛视频� rose far above its face value. At the time pennies ceased being made, it cost 3.69 cents to produce one.
The U.S. Mint said it expects to save approximately $56 million annually.
The move has led to a shortage of pennies in cash registers for making change in cash transactions, and businesses are rethinking how they handle them.
无毛视频淎 lot of banks aren无毛视频檛 giving out pennies, so we have not really had any pennies,无毛视频� said Maddie Huseman, general manager of From Scratch Uptown, a Uniontown coffee shop and eatery. 无毛视频淲e无毛视频檝e been rounding up and rounding down. I无毛视频檓 trying to figure out how to make everything add up to a zero or a five, but it无毛视频檚 not that easy with tax.无毛视频�
Now, some states, including Pennsylvania, are proposing solutions to the penny problem by setting rounding guidance for cash purchases.
State Rep. Nathan Davidson (D-103rd District) is introducing 无毛视频渞ound up or round down无毛视频� legislation that would allow cash transactions to be rounded to the nearest nickel.
If the final price, after taxes, ends in 1, 2, 6 or 7 cents, payments in cash round down. For example, $1.91 or $1.92 becomes $1.90. If the price ends in 3, 4, 8 or 9, cash payments round up. For $1.98 or $1.99, the customer pays $2.
The legislation is similar to rounding policies adopted by other countries that have ended the use of pennies, like Canada (which stopped using its penny in 2012), Australia and New Zealand.
The bill aims to make the rounding process financially neutral, so that sometimes customers benefit and sometimes retailers benefit. Over time, neither party comes out on top.
Many retailers are already voluntarily rounding up or down in cash transactions. But the legislation would help the state officially remain in compliance with SNAP regulations and supercede the laws of local municipalities that do not embrace rounding policies.
Some stores have posted signs informing customers that change may be limited and explaining their rounding policy.
无毛视频淢any Pennsylvanians prefer to pay in cash, and the penny shortage has made it difficult to provide change to the nearest cent,无毛视频� Davidson said in a recent memo. 无毛视频淪ince many of these fees are set in statute, counties and local governments have no flexibility and are left with no good choices. For this reason, I will be introducing legislation that would allow cash transactions to be rounded to the nearest nickel.无毛视频�
Dave Rhome, owner of Sam无毛视频檚 Pizza in Canonsburg, said pennies have been hard to come by.
He said the shop, which is a cash-only establishment, rounds in favor of customers, even though the business could end up losing out on transactions 无毛视频� which makes a difference for small businesses.
无毛视频淥ur goal is always to do right by our customers. If an order is for $5.92, we would give them a dime, versus fooling around with the pennies,无毛视频� said Rhome.
At Shorty无毛视频檚 Lunch restaurants in Washington, the penny shortage has not been an issue yet, according to owner Matt Alexis.
无毛视频淲e无毛视频檙e just continuing with the way it used to be,无毛视频� said Alexis, noting some customers pay with exact change, while others pay with bills and coins that require making change. 无毛视频淲e haven无毛视频檛 had a problem yet.无毛视频�
Giant Eagle stores still give and receive pennies, and in November the grocery chain hosted a 无毛视频減enny exchange无毛视频� event, where customers traded in pennies 无毛视频� between 50 cents and $100 无毛视频� for double their value in store gift cards, which helped restock penny supplies for the short term.
Giant Eagle Public Relations Manager Jannah Drexler said the grocery chain无毛视频檚 penny situation 无毛视频渋s OK and we are continuing to provide customers with exact change, when necessary.无毛视频�
Some convenience and retail stores are encouraging customers at their stores to use cashless options or to round up their totals to support charities.
And, some local convenience stores still have a 无毛视频渢ake a penny leave a penny无毛视频� dish by the cash register.
Broc Sleek, incoming president and CEO of CHROME Federal Credit Union, said the credit union still has plenty of pennies on hand, but the credit union无毛视频檚 vendors are preparing for how the discontinuation of penny production 无毛视频� and the Federal Reserve无毛视频檚 stoppage of providing banks and credit unions with the coin 无毛视频� will impact transactions.
At the federal level, the Common Cents Act was introduced last fall, but has stalled in Congress. At least 22 other states, like Pennsylvania, are working on solutions.
If passed, the Common Cents Act would supersede state acts.
Sleek said people are encouraged to put their pennies 无毛视频� which often end up in jars, in car cupholders, or under couch cushions 无毛视频� into circulation to help with shortages.
In the meantime, stores will continue to make the best of the situation.
无毛视频淭his is just how it is now,无毛视频� said Huseman. 无毛视频淲e无毛视频檝e been letting our customers know, and everybody无毛视频檚 been nice about it, and that无毛视频檚 helped.无毛视频�
About the penny:
无毛视频� In 1909, Abraham Lincoln became the first U.S. president to appear on a coin, commemorating his 100th birthday. The reverse has changed several times since.
无毛视频� The original penny was a large copper coin featuring a woman with flowing hair symbolizing Liberty. The last version, featuring Lincoln, was a smaller coin composed of copper and zinc.
无毛视频� A coin无毛视频檚 typical lifespan is 30 years.
无毛视频� The U.S. Mint produced and shipped approximately 3.2 billion pennies in fiscal year 2024.
无毛视频� At least 114 billion pennies are currently in circulation and remain legal tender, but their availability is declining.
无毛视频� The Mint will continue to produce collector versions of the penny in limited quantities.