It’s official: The penny is no longer in production.
The U.S. Mint stamped its last penny Nov. 12 in Philadelphia. The government will eventually auction off the final five pennies, which were stamped with a special omega mark, the Treasury Department announced.
The end of penny production comes as thousands of retail locations nationwide were already experiencing penny shortages, including popular Wisconsin chains like Kwik Trip and Kroger.
Here’s what the penny going away means for Wisconsin consumers and businesses.
Why did production of the penny stop?
In February, President Donald Trump directed the Treasury Department to stop minting pennies. Though the president’s order was the first to stick, several politicians have proposed halting penny production over the years due to its cost.
Each penny cost about 3.7 cents to make before production ended, according to the Mint. The agency is expected to save $56 million annually by no longer making pennies, USA TODAY reported.
Can I still use existing pennies?
Yes, you can continue to use pennies for cash transactions.
As of Nov. 12, there are still an estimated 300 billion pennies in circulation, according to the Mint. The penny is expected to remain in circulation for years to come.
What does the end of penny production mean for cash transactions?
As penny circulation decreases, banks and retailers will likely start rounding cash transactions to the nearest five cents, according to the American Banking Association. In other countries that have phased out their smallest coins, like Canada and Australia, businesses took similar steps by rounding cash transactions up or down.
Electronic payments will remain unaffected by the end of penny production.
How are retailers in Wisconsin, other states responding to the penny going away?
Even before penny production ended, retailers were beginning to feel the effects of a penny shortage.
In October, Kwik Trip began rounding down all cash transactions to the nearest five cents.
McDonald’s, meanwhile, has taken a different approach in certain locations by rounding cash transactions up or down to a multiple of five, depending on which is closest.
Kroger, the parent company of Wisconsin chains including Pick ‘n Save, Mariano’s and Metro Market, hasn’t shared a new penny policy but asked customers in early November to “consider providing exact change.”
This article originally appeared on Milwaukee Journal Sentinel: Penny production has come to an end. What does that mean for Wisconsin consumers, retailers?
Reporting by Maia Pandey, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
USA TODAY Network via Reuters Connect
