The end of U.S. penny production stirs confusion among businesses, as federal guidance lags and checkout practices vary. Consumers may face rounding inconsistencies.
WASHINGTON — The penny shortage was already frustrating to business owners and now the U.S has stopped making pennies altogether.
It’s created concern and confusion for business owners.
“There’s a lack of guidance,” said Ted Rossman, “So, that’s confusing for people.”
Ted Rossman is a Senior Analyst for Bankrate — a personal finance website.
He says no federal guidance was issued after penny production officially ended last month and now business owners are trying to figure out checkout prices on their own.
“Consumers should know right now that sometimes when you pay with cash you might not get exact change because the business may not have those pennies,” said Rossman, “Depending on where you are — which retailer you’re talking about — they may apply this differently. Sometimes they may round up or down to the nearest nickel.”
Back in February, President Trump ordered the Department of Treasury to cease production of the penny.
He cited the cost to make the penny was more than the actual value of the coin.
The penny is valued at 1 cent and it’s estimated it cost about 3.7 cents to make each penny in 2024.
Since then, the American Bank Association and some congressional leaders have asked the government to lay down some rules on billing.
Rossman says some businesses are rounding down to the nearest nickel in favor of the customers.
For example — if your bill is $8.63 cents, the store may round down to $8.60 to be able to give you exact change.
But some business owners say only rounding down puts them in a penny pinch.
“Some are pushing back on that — saying a penny here and a penny there can add up,” said Rossman.
The National Retail Federation announced it’s working with bill sponsors on the “Common Cents Act” to nail down rounding guidance.
Rossman says some states are also taking initiative to sort things out at the local level.
He says its important to find a balance for business owners and Americans who still use cash as their main currency.
“Older people like to use cash. Low income like to use cash,” said Rossman, “May seem obvious to just use your debit card or your Apple Pay, but that doesn’t work for everyone.”
The US isn’t the first to get rid of the penny.
Canada opted to get rid of the penny in 2012.