How Businesses Should Handle the End of Penny Production
If you've noticed it is harder to get pennies lately, you are not alone. Back in February, the U.S. Treasury announced it would stop producing new pennies. The U.S. Mint reportedly took its final order over the summer and has since stopped coin production. While pennies remain legal tender, having fewer available is beginning to affect many retail and small business owners.
If your business handles cash transactions, here are a few ways to manage:
Round cash transactions.
If your state allows it, you can round totals to the nearest five cents when pennies are not available. Be consistent and post a brief notice at the register so customers understand that rounding applies only to cash purchases, not card or digital payments.
Encourage digital or card payments.
Promoting electronic payments helps reduce your need for coin change and keeps transactions quick and accurate.
Recycle the coins you already have.
Instead of returning pennies to the bank, reuse them in your own registers. Encourage staff to roll and reuse coins or consider offering a small incentive to customers who bring in rolled change.
Coordinate with your bank.
If you order coin regularly, reach out to your banker before you run low. They can help you plan ahead, request alternate denominations, or provide guidance on cash-handling strategies during the shortage.
Communicate with customers.
A simple sign or short explanation goes a long way. Let customers know the shortage is nationwide and that you are taking steps to keep transactions fair and consistent.
Its unclear when or if the penny will no longer be considered legal tender. Regardless, your financial advisor should give you guidance on keeping your business running smoothly through the transition. See how Pinnacle is handling this situation at PNFP.com/Penny.
Beth Deering is an office leader at Pinnacle’s Nashville Yards office. She can be reached by email at beth.deering@pnfp.com and by phone at 615.743.8415.
