Penny Shortages Already Hitting Some Retailers
The penny’s days are numbered, and some retailers are already running short of the one-cent coins.
The Treasury Department officially marked the beginning of the end of penny production in May when it placed its last order of blanks – the flat metal discs to make pennies. That came after President Donald Trump told the department in February to stop making the coins, which cost more than 3 cents to produce. (They cost 3.69 cents to make, according to the U.S. Mint.)
The U.S. Mint reportedly made its last pennies in August, the American Bankers Association said on Oct. 17. Already, some convenience stores, supermarkets and retailers, including Kroger and Home Depot, have had” Without enough pennies, stores cannot make correct change for cash transactions.
That organization and several others, including the National Retail Federation, the National Restaurant Association, the National Grocers Association and the National Association of Convenience Stores, have sent a letter to the chairs of the congressional financial services and banking committees asking them to pass “a national law allowing businesses to round cash transactions to the nearest nickel.”
Are pennies expensive to make?
Compared to other coins, no, but compared to its own value, yes. The average cost to make one penny rose to 3.69 cents in the last fiscal year, marking the 19th consecutive year the coin has “remained above face value,” per the latest U.S. Mint report. For comparison, it costs less than six cents to make a dime ($0.0576), about 15 cents to make a a quarter ($0.1468), and nearly 34 cents for a half-dollar ($0.3397).
Paying with cash? What to expect
For now, if you’re planning to pay with cash at a store or restaurant, you may want to prepare to receive slightly more change than you’re actually owed. Nonetheless, pennies remain legal tender, so you will likely still be able to use them to pay at the register. There’s likely little value in stockpiling pennies and hoping for a big payout.
