The Penny’s Demise Leaves Some Businesses Shortchanged

As the US Treasury Department moves forward with its plan to phase out the penny, some retailers are feeling the pinch. In response to the impending demise of the one-cent coin, a handful of businesses have begun rounding transactions to the nearest nickel, while encouraging customers to pay with credit or debit cards. This workaround is causing frustration among some shoppers, who argue that it effectively shortchanges them.The Treasury Department's decision to discontinue the penny was made in 2012, with the goal of saving an estimated $47 million per year in production costs. However, some argue that the real impact will be felt by consumers, particularly those who frequently make small purchases. By rounding up or down to the nearest five-cent increment, businesses are essentially absorbing the loss of the penny. While this may seem like a minor issue, it can add up over time, especially for low-income households or individuals who rely on cash transactions.At a local convenience store, customers have noticed that prices are being rounded to the nearest nickel. For example, a purchase of $1.47 might be rounded up to $1.45 or down to $1.50. While the store's owner acknowledges that this practice may be inconvenient for some customers, he insists that it's a necessary response to the changing landscape of currency. "We're just trying to adapt to the new reality," he said. "The penny is on its way out, and we need to find ways to make our business work."Other businesses are taking a similar approach, encouraging customers to pay with plastic to avoid the hassle of handling pennies altogether. This shift towards card-based transactions may benefit businesses in the long run, as it can reduce the costs associated with processing cash. However, it also raises concerns about financial inclusion, as not all consumers have access to credit or debit cards.As the penny's demise draws near, it's clear that some businesses will need to adapt to a new financial reality. While rounding transactions to the nearest nickel may seem like a minor adjustment, it has the potential to impact consumers in meaningful ways. As the US continues to move towards a more digital economy, it's essential to consider the implications of this shift on vulnerable populations and ensure that they are not left behind.