Bye Bye, Penny
Monday, February 4, 2013 @ 4:10 AM
Prince George, B.C.- As of today, the penny will no longer be distributed by the Royal Canadian Mint and businesses are being encouraged to start the practice of "rounding " up or down.It is the last step in the putting an end to the one cent piece, which costs 1.6 cents per penny to produce. Photo at right shows were many pennies end up – being horded in jars – hence, one of the costs of trying to keep enough pennies in circulation.
Businesses have been urged to return their pennies to financial institutions. The banks are to then return the pennies to the Mint, where they will be melted down, and the metal recycled.
Each year, the Mint produced about 7,000 tonnes of pennies.
So, what happens to your purchases now?
Well, if you are making a CASH purchase, the business is supposed to round the total to the nearest nickel. So if the amount owing is $1.03, the total would be rounded up to $1.05. If the total is $1.02, it is supposed to be rounded down to $1.00.
Graphics produced by Royal Canadian Mint
If you are paying for goods or services with a cheque, debit card or credit card, there is no “rounding” the bill will be processed for the exact amount owing.
Comments
Maybe they can afford to make our dimes a decent size now….better yet get rid of them and the nickels too…and cut our GAS taxes.
If people would pay for purchases using their change then the mint wouldn’t have to produce so many pieces. Most people don’t bother to use their change; they just whip out a bill feeling cool and in a hurry, waiting for their exact change which then ends up in a jar, useless.
We don’t need to be in such a hurry. It’s not healthy. Slow down, take your time.
BCRacer, the debit and credit card fees will be paid by the customer, not the merchant. They’re already worked into the prices of everything you buy at any store that accepts debit and credit cards. And if those fees cost the merchants more, they’ll recover that in still higher prices.
It will likely only be a short while before the nickle is history, too. And the dime will then occupy the place the penny once did. Until it goes too, and the looney will be the lowest denomination of currency left. Though it might all be gone by then, at the pace debit and credit cards are advancing, and that technology itself, what’s available now, is in its primitive infancy compared to what will be available soon.
So much for the notion of money being a “store of value”. Now if we could just dispel the idiotic notion some people still seem to hold of it as being a “medium of exchange”, now that we’ve trashed the concept of its invariability as a ‘store of value’.
Pretty hard to still be a ‘medium of exchange’ when the only thing more and more people have ever had to offer in exchange for anything they need and want is their labor, and nobody wants that in a world that’s automating every ‘job’ out of existence.
Getting rid of the penny? Good godfrey, its about time! Let us catch up with Europe, Australia, and a few others. Who cares if the merchant is going to take a penny here or there. If pennies are that important, then stay away from the credit cards and their 2+% charges. We can lament about the $ rounding ups on a $1 – but then, what about all those stores that list their prices ending with 99 cents? And, how about those prices that round down? Really, does it matter THAT much?
Now, let us also do what many other jurisdictions do: Include the VAT taxes in the price.
“I personally can’t see many business rounding down all their prices…”
You realize of course that rounding has always taken place. It used to be rounding to the nearest penny. Now it will be the nearest nickel. Next will be the nearest dime which is where a few countries are already at.
The computers are set to do it that way. It is the law. If anyone is caught there will be a fine, I am sure.
Yes tin foil hat lovers – I know many business owners that are just rubbing thier hands together with an evil little laugh about the free money they are going to steal by rounding up everything…
sarcasm over
“you pay off the credit card and there is no fees or charges”
The charges are paid by the merchant who takes the credit card. If they did not accept credit cards, many people would not buy some intermediate priced items and go to where credit cards are available.
In Washington State the gas stations are fighting the system and likely winning since they have a double price – a cash price and a credit card price. That is supposedly against the law. However, they seem to be winning it which I just love. It is about time!
BCRacer: Know this: The merchand pays the CC fee, that is passed on to you. Similalry, the merchant will pay the one or two pennies that is rounded down – yes, the merchant will also ‘pocket’ the rounded up totals. But, this is really penny stuff!
Way to save money, pay cash when rounded down, pay credit card when rounded up.
Keep your penny’s that pre date 1996.. The copper value is worth more than face value. Right now there is an incredible oppertunity here to buy up copper penny’s at face value because copper is now also being traded as bullion.. Something to consider for the future. Cheers..!
I for one am glad they are getting rid if it. What are all the kids gonna throw at the hookers down town then?
The penny will become a collectors item so eventually will be worth some money more then a penny.
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