America’s smallest coin is causing big headaches

The “Take a penny, leave a penny” tray industry appears to be on its last legs.

President Trump’s order earlier this year halting the US Mint’s production of new pennies has resulted in the coin’s extinction approaching faster than anyone expected, according to retail groups across the country.

How we got here: The penny’s demise follows years of debate in Washington over whether the coin is still cost effective to produce. Each penny costs ~$3.69 to make, meaning the US Mint will save $56 million annually by eliminating production of the one-cent coin.

But…While US Treasury officials are geeked about saving money, the penny’s elimination has added a layer of hassle to many cash-heavy businesses, which are scrambling to adapt.

• McDonald’s locations across the country have begun rounding prices up or down to the nearest nickel. (How the system works)
• Shoppers at Kroger supermarkets and Sheetz convenience stores are increasingly finding signs warning them to be ready for inexact change.
• Kwik Trip recently unveiled a new policy for cash transactions where it rounds prices down to the nearest nickel.

Other nations have experienced a similar transition. The practice of rounding prices to the nearest round number has been recently adopted for cash transactions across Canada, Australia, Ireland, and New Zealand, though digital payments are mostly kept precise.