The U.S. Mint stopped producing pennies Wednesday, leaving many businesses having to figure out how the change will affect their pricing. At Kwik Star, Vice President of External Relations John McHugh said cash still matters, noting that 17% of the company’s transactions are done with cash. He tells KCCI, while that may not sound like much, many of those payments come down to the pennies.According to McHugh, a penny shortage in Kwik Star’s Wisconsin stores earlier this summer pushed the company to make a change. “We never want to cheat them out of their money,” McHugh said. The decision made for people paying with cash was to round down and not up. “If the bill comes to $7.37, we’ll round down to $7.35,” McHugh said. “If it’s $7.41, we’ll round down to $7.40.” McHugh said the company’s Iowa locations should start seeing the change soon, if not already. When it comes to the end of the production of pennies, some businesses KCCI reached out to shared the decision to round up or down is one they’re trying to figure out. A few businesses shared they’re having to figure out how the sales tax would implement any change they make. Businesses are also having to figure out what impact either decision would have on their profit. “With this rounding down policy — company-wide with 900 stores — this will cost us this year $3 million,” McHugh said. McHugh tells KCCI the company will not be increasing prices of items to make up for any losses. People are also turning to banks with questions. KCCI spoke with MidWestOne Bank regarding what people should know. “Pennies are still being used. They can still be used. They’re just not being made anymore,” said Devin Boyer, MidWestOne Bank’s market president. On its website, MidWestOne Bank shared recommendations for businesses working to navigate this change. One of those recommendations is that they act now. Some recommended actions listed for businesses include auditing their coin inventory and updating their POS systems to round for cash transactions. Boyer said it’s still business as usual at MidWestOne Bank locations. “If you have piggy banks at home or jars of coins at home that include a lot of pennies, bring them in,” Boyer said. “We’ll go ahead and count them for you and get them rolled for you also, just get them back into circulation.”
The U.S. Mint stopped producing pennies Wednesday, leaving many businesses having to figure out how the change will affect their pricing.
At Kwik Star, Vice President of External Relations John McHugh said cash still matters, noting that 17% of the company’s transactions are done with cash. He tells KCCI, while that may not sound like much, many of those payments come down to the pennies.
According to McHugh, a penny shortage in Kwik Star’s Wisconsin stores earlier this summer pushed the company to make a change.
“We never want to cheat them [our customers] out of their money,” McHugh said.
The decision made for people paying with cash was to round down and not up.
“If the bill comes to $7.37, we’ll round down to $7.35,” McHugh said. “If it’s $7.41, we’ll round down to $7.40.”
McHugh said the company’s Iowa locations should start seeing the change soon, if not already.
When it comes to the end of the production of pennies, some businesses KCCI reached out to shared the decision to round up or down is one they’re trying to figure out.
A few businesses shared they’re having to figure out how the sales tax would implement any change they make. Businesses are also having to figure out what impact either decision would have on their profit.
“With this rounding down policy — company-wide with 900 stores — this will cost us this year $3 million,” McHugh said.
McHugh tells KCCI the company will not be increasing prices of items to make up for any losses.
People are also turning to banks with questions.
KCCI spoke with MidWestOne Bank regarding what people should know.
“Pennies are still being used. They can still be used. They’re just not being made anymore,” said Devin Boyer, MidWestOne Bank’s market president.
On its website, MidWestOne Bank shared recommendations for businesses working to navigate this change. One of those recommendations is that they act now. Some recommended actions listed for businesses include auditing their coin inventory and updating their POS systems to round for cash transactions.
Boyer said it’s still business as usual at MidWestOne Bank locations.
“If you have piggy banks at home or jars of coins at home that include a lot of pennies, bring them in,” Boyer said. “We’ll go ahead and count them for you and get them rolled for you also, just get them back into circulation.”
