The end of the penny is on its way, here are a few things to consider as we prepare!
Consumer and Merchants
Critics of the penny’s elimination often fear it could lead to price inflation or unfair rounding. However, evidence from other countries, such as Canada and New Zealand, which have successfully retired their smallest coins, shows that prices tend to be rounded in both directions, balancing out over time. Most cash transactions round to the nearest nickel, and electronic payments, including credit card purchases, remain unaffected.
Many retailers support rounding rules to help streamline checkout processes, and some already offer “rounding policies” to make up for the lack of pennies when they run short.
Beyond cost and convenience, consumer behavior is another key factor. The rise of digital payment systems has drastically reduced the role of physical cash. Venmo, Apple Pay, credit cards, and contactless payments have made carrying coins nearly unnecessary. Millennials and Gen Z, in particular, are driving this shift toward a cashless economy.
What should I do with my pennies.
If the penny is on its way out, you may be wondering what to do with that huge jar full of coins collecting dust in the corner. Cash them in! Coin-counting machines (available in many grocery stores) allow you to convert your pennies into cash or gift cards. A word of caution, most of these coin-counting services charge a significant service fee, plus a transaction fee. That’s a lot of pennies to pay for convenience.
Most banks and credit unions accept coins for deposit, but they are not required to by federal law — check with yours to see their policy. Gateway Bank does accept pennies, we are just unable to provide pennies back to you in a change order.
One thing to note: Gateway Bank branches do not have coin counting machines. When bringing pennies to the bank please roll them and have an idea of the total.