Back to Home11/12/2025, 4:10:13 PM

The last-ever penny will be minted today in Philadelphia

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business

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numismatics

US currency

monetary policy

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The US Mint is producing the last-ever penny today in Philadelphia, marking the end of an era for the iconic coin. The decision to discontinue the penny has sparked discussion and reflection on its significance and impact.

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  1. 01Story posted

    11/12/2025, 4:10:13 PM

    6d ago

    Step 01
  2. 02First comment

    11/12/2025, 4:17:16 PM

    7m after posting

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  3. 03Peak activity

    150 comments in Day 1

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    11/17/2025, 7:14:43 PM

    1d ago

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Discussion (934 comments)
Showing 160 comments of 934
hrimfaxi
6d ago
8 replies
I watched a video on the demise of the penny and its predicament was so succinctly explained: everyone gets pennies as change but few carry them around let alone spend them, so we are stuck producing ever more. One news outlet even did an "experiment" where they threw hundreds of pennies on the ground in a city on a busy morning and not one person stopped to pick any up.
basscomm
6d ago
6 replies
> everyone gets pennies as change but few carry them around let alone spend them

It's not just pennies, it's all coins. In a former life I worked in retail and almost nobody would fish around in their pockets for exact (or even near) change. They'd always hand me bills for their purchase even if they had just completed a transaction and had the coins in their pocket. That was in the 90's, and I still see it happening today, even though I'm no longer in the retail world.

Retric
6d ago
4 replies
I’d regularly use quarters in vending machines, but not waste time during a retail transaction.
Symbiote
6d ago
1 reply
In most other countries, since prices are shown including all taxes you can often have the money ready while waiting in line etc.
guntars
6d ago
Another aspect of the idiotic "we don't know what your tax is going to be" system (they do know it, actually) is that prices will typically end with .99 and the tax will push it over the next dollar and cause a bunch of change to be returned, instead of a single penny.
zahlman
6d ago
4 replies
It's amazing to me that people consider "saving time while paying money" to be a good thing.

I will never "tap" my debit card as long as I have any legal option. Everyone else can wait for me to exercise my consumer rights, by inputting my PIN, verifying the amount displayed on screen etc.

Retric
6d ago
1 reply
Wasting people’s time is rude here not illegal.

Courtesy may seem outdated to some, but it can occasionally come back to bite people. Being overly rude to waitstaff is something I’m concerned with around promotions because of how they might treat people inside the company. Without better information you extrapolate.

zahlman
6d ago
1 reply
... How is this related to what I said?
Retric
5d ago
1 reply
> It's amazing to me that people consider "saving time while paying money" to be a good thing.

If you’re checking it at a grocery store it’s likely there’s someone in line behind you waiting to pay, it’s a fairly common aspect of physical transactions. Waiting for you to count out your pennies is the kind of thing that evokes rage in people because it’s so rude.

zahlman
5d ago
1 reply
> If you’re checking it at a grocery store it’s likely there’s someone in line behind you waiting to pay

I usually use the self check-out which is usually not at all busy when I get there.

> Waiting for you to count out your pennies

I was explicitly talking about using a debit card, and as I established repeatedly throughout the thread, my country hasn't used pennies for over a decade.

But on the occasions that I pay cash, I do try to make exact change, because that's courteous to the cashier (and also just satisfies my aesthetic sense). I'm quick about this, because being the sort of person who posts on Hacker News, my mental arithmetic is pretty good.

> is the kind of thing that evokes rage in people because it’s so rude.

I've had people in front of me "waste" far more time than that because they had to cancel items (and deliberate over what to send back), struggle to pull things out of their cart, etc. It doesn't bother me. If I urgently needed to be somewhere else I would have planned my trip for another time. It already takes quite a while because I walk both ways (which I also enjoy quite a bit by the way).

People ITT are talking about the value of time, but I can't reasonably value each second equally. Time is not nearly as fungible as money; ten seconds saved on an outing is just not going to translate into ten seconds spent on my projects. Nor can I make myself feel as though every moment not spent on acquiring capital is equally wasted.

And I deeply resent the implication that using XYZ technology to save time is a moral imperative.

Retric
5d ago
For a cashier sorting a customers change and presumably multiple small denomination bills is more effort than the rote action of handing out change. Handing exact change is therefore significantly slower for everyone else.

> using SYZ technology to save time is a moral imperative

Saving other people’s time is the imperative, the technology bit is simply how that happens. People can for example fill most of a check out before they know the exact amount, but you rarely see it.

robocat
6d ago
1 reply
I've seen a pattern where people that value their own time at $0 unfortunately often value the time of others at $0. Worse is valuing others at $0 and your own at $lots (which is also common).
zahlman
6d ago
Interesting.

I don't know what to make of the idea that I'm "not valuing my time" by carefully considering my purchases and caring about security. Or that the seconds I take on this are so important to both myself and others, compared to the time spent browsing the store shelves, getting to and from the place, etc. Heaven forbid I choose the cashier instead of a self check-out this time, and try to strike up a conversation.

quesera
6d ago
1 reply
Entering your PIN and using a debit card is the least secure/safe version of electronic payment.

Tapping (NFC) or dipping (EMV) are safer and faster for everyone.

zahlman
6d ago
1 reply
How do you figure?

My threat model includes people stealing the card. I can have tap disabled on the card, and then thieves don't know my PIN. Yes, yes, that's like 13 bits of entropy. But it's not like they can use a computer to brute-force it.

vlovich123
5d ago
1 reply
I think your threat model is incomplete. You’re far more likely to have your card cloned and pin stolen through a fake terminal. I’ve actually had that happen to me vs 0 times have I had fraudulent transactions due to a stolen card.

Tap/dip payment is non cloneable even by a fake terminal. Outside the US tap+pin/dip+pin is even common but banks for some reason really are averse to requiring Americans to add a pin to credit cards.

zahlman
5d ago
1 reply
> fake terminal

... at the self-checkout of a major grocery store?

> Outside the US tap+pin/dip+pin is even common

As far as I can tell "dip + pin" is exactly what I do with a debit card. This is literally the first time I've ever heard the term "EMV", so I looked it up:

> EMV cards are smart cards, also called chip cards, integrated circuit cards (ICC), or IC cards, which store their data on integrated circuit chips, in addition to magnetic stripes for backward compatibility. These include cards that must be physically inserted or "dipped" into a reader

As far as I can tell, that exactly describes my debit card.

> but banks for some reason really are averse to requiring Americans to add a pin to credit cards.

Well, yes, the entire selling point of tapping the card is that you don't spend those precious seconds on entering a pin. And my point here is to reject that culture of hurrying up (at the potential expense of carelessness).

quesera
4d ago
Tap (NFC, radio), dip (EMV, chip), or swipe (magnetic stripe).

The fake terminal concern that vlovich mentions above is real. Look up "credit card skimmers" (the same threat applies to debit cards and ATMs -- anything with a magstripe and keypad).

This is a big deal. It's happened to me three times in the last few years, twice within a week of each other (and likely from the same location).

There are some EMV skimmers in the wild too. They're called "shimmers" because the mechanism is very thin and inserted into the EMV dip slot. These need a separate mechanism to capture PIN input via keypad, so they remain a better choice (but keep reading).

NFC is the safest, and fastest. The cryptography between the card and reader is intact and not replayable etc. Apple Pay is equally good from a safety perspective, and better from many others. I don't know about Google Pay.

Other problems with using your debit card: credit card contracts offer better protections against fraud; and of course there is no immediate debit to your account, so you are never stuck fighting to recover already-stolen funds.

The entire point of EMV and NFC is increased card security. It's nice that they're also quicker, but that's quite secondary.

So, do as thou wilt, obviously. But your mudstickery may be putting you at additional risk. I don't estimate the time difference as meaningful for you or other customers.

msla
5d ago
> my consumer rights

How pitiful are you to think "consumer rights" not only exist, but are worth "exercising"? What, do you have the right to spend money on marked-up garbage? The right to be sold to bigger "consumers"? You are just a "consumer" and not a citizen, apparently.

dylan604
6d ago
> but not waste time during a retail transaction.

we could just go back to writing checks while we're at it.

ocdtrekkie
6d ago
I used to do this for vending machines but now it’s common to need more than eight of them per transaction so it's kinda silly.
expedition32
6d ago
2 replies
Nowadays I pay for everything with my phone but back in the day I too hated using coins. Having to calculate and fish out coins? Ain't nobody got time for that.
zahlman
6d ago
It's amazing to me that there are people with this mindset. I enjoy the process.
basscomm
6d ago
> Having to calculate and fish out coins? Ain't nobody got time for that.

It's not that hard or time consuming if you actually use your change instead of letting it accumulate. I typically have less than a dollar in coins on my person at any given time because I spent it.

If you're paying in cash, you either take time to count the change you're going to spend, or you take time waiting for the cashier to count the change you're going to get. Or you go cashless and avoid the whole thing

zahlman
6d ago
1 reply
I pay exact change whenever I can.

And on the occasions where I can only make (exact change + simple amount), I often get deer-in-headlights looks from cashiers who can't do mental arithmetic and apparently haven't learned how to get the machine to understand payments of more than one physical bill or coin.

zahlman
6d ago
1 reply
I legitimately don't understand why people object to this strongly enough to downvote it without comment.
ssl-3
6d ago
The majority of the comment was spent on being disparaging towards people who work in retail.

(Entering a discussion about that kind of topic can be a pretty sure way to invoke Godwin's Law, so the most sane and civil option is to downvote and walk away.)

forinti
6d ago
1 reply
I like using coins because I'm always looking for commemorative coins. It's an interesting investment: you can immediately double or triple your money. Unfortunately, you rarely find them.

I also keep the obvious fakes.

technothrasher
6d ago
The best unexpected coin I found in the drawer when I was working at a liquor store was an 1844 Belgian 1/2 Franc in with the dimes.
jwrallie
6d ago
1 reply
People are very lazy to do basic math. I always minimize the coins I am carrying by doing math on my head so that the combined value of a certain coin never exceeds the amount of the next available coin/bill, that way I never exceed the carrying capacity of my wallet.

Most people I know just pocket everything and put on a box at home for undetermined time.

kevincox
5d ago
It's not even just that. Coins are heavy, large and noisy. Bills are way more convenient and cards even more so. If we could solve privacy issues with cards I would say get rid of all bills. Maybe just keep a few $100s in my wallet in case my cards get declined for some reason.
triceratops
6d ago
That's incredibly bizarre. If I have coins my first instinct is to spend them ASAP so I don't have to carry them around.
mooreds
6d ago
1 reply
I remember moving out of a place (decades ago). I was the last roommate out, and so was stuck with some of the cleanup (wanted to get that deposit back!).

One of the things we had was a ton of pennies (no idea why). I had no room in my car, so I spend a few minutes late at night flinging pennies out onto the sidewalk after a long day of cleaning the place.

dylan604
6d ago
1 reply
Would it not have been better/easier for all involved to have just set a container of all the pennies on the street on your way out? If someone really could use them, you're kind of a dick for making them pick them up one at a time, but if they were all together...
mooreds
1d ago
Yeah, in retrospect that would have been better.
SkyPuncher
6d ago
1 reply
Only place I've ever noticed them is the $0.01 pony ride that's been sitting at my grocery store for 30 years.

Even they've gotten the hint and simply leave a tray of pennies next to it so people can actually use it.

cartoonworld
6d ago
1 reply
They’re probably doing that so your kid or some kid can use it and leave the penny tray because they aren’t trying to make money off of it anymore.

It’s just for fun, sounds like a nice gesture.

SkyPuncher
5d ago
Yep. That's exactly what is was.
MarkLowenstein
6d ago
2 replies
I always pick them up. Every penny buys enough pasta to keep you alive for another 15 minutes. So in case I ever go broke, I've staved off my eventual starvation by 15 minutes.
hrimfaxi
6d ago
1 reply
How did you arrive at this conclusion?
MarkLowenstein
6d ago
It was always just an estimate but today I verified it with a chatbot before I made any claim about the time. Caught it in a mistake too, which I untangled by reminding it that food calories are actually kilocalories.
comradesmith
6d ago
I like this perspective :)
m463
6d ago
I use quarters in parking meters sometimes.
gniv
6d ago
Random anecdote: I go to a boulangerie almost daily (as one does here in France). There is one close to me that started charging 12 centimes for slicing the bread. I got annoyed with this and nowadays make a point to take lots of small change from the coin jar and use it. They don't seem to mind.
dmd
6d ago
> not one person stopped to pick any up.

Isn't that the old joke about the economist?

kristopolous
6d ago
I actually do that for numismatic reasons now. After today they will only increase in scarcity.

Not that I imagine they'll ever be valuable mind you... I should really just go and get $5 worth somewhere. That would satiate my desires

bryanlarsen
6d ago
3 replies
Many countries eliminated their pennies without chaos or unfair burdens on shopkeepers. In Canada, the process was widely popular after the fact even though newspaper articles prior to the elimination intimated it wouldn't be due to their "both sides" style of reporting.

It's indicative of the current US administration that they managed to screw this up despite many examples world wide of how to do it properly.

terminalshort
6d ago
1 reply
If you believe this is going to cause chaos or significant burdens on merchants I have got a bridge to sell you (but I don't take pennies). This quote tells you all you need to know.

> The government’s phasing out of the penny has been “a bit chaotic,” said Mark Weller, executive director of Americans for Common Cents. The pro-penny group is funded primarily by Artazn, the company that provides the blanks used to make pennies.

zahlman
6d ago
The same thing happened many years ago with the same company (previously called Jarden Zinc).

> Americans for Common Cents is a non-profit lobbying group dedicated to the protection of the one-cent coin. The group is primarily interested in preserving the penny for economic and historical reasons. In 2012, Executive Director Mark Weller was paid $340,000 by Jarden Zinc to discuss issues relating to minting with members of Congress and the US Mint.[41] Weller has acknowledged this funding, saying that “We make no secret that one of our major sponsors is a company that makes the zinc ‘blanks’ for pennies."[42] Weller has testified on multiple occasions before Congress. In 2020 Weller testified that the use of cash protects privacy, provides economic stability and "is a public good" that should not be replaced by mobile money.[43]

quickthrowman
6d ago
1 reply
Unfair burden?? I think you’re blowing this out of proportion..

Credit card fees are 2-4%. Rounding to the nearest nickel costs at most $0.02 (1,2 round to 0; 3,4 round to 5)

It is cheaper for the merchant to round to the nearest nickel for any transaction of one dollar or more than it is to pay CC merchant fees.

bryanlarsen
6d ago
2 replies
It costs on average 2 cents because without legislative authority to round to closest the retailer must round down and eat up to 4 cents of difference.

Cash costs retailers money too. Safely transporting it to the bank, et cetera. For many, cash is more expensive than credit cards.

ezfe
6d ago
They can reprice items to minimize rounding
zahlman
6d ago
> Cash costs retailers money too. Safely transporting it to the bank, et cetera.

Yes, and now they won't have to incur that cost for pennies.

zahlman
6d ago
> even though newspaper articles prior to the elimination intimated it wouldn't be due to their "both sides" style of reporting.

No idea what you're talking about here. This isn't a left-vs-right issue, and journalism gave the concerns approximately the attention they merited.

> It's indicative of the current US administration that they managed to screw this up despite many examples world wide of how to do it properly.

No, it's indicative of problems uniquely caused by existing American governance and law. When we did it, we didn't have an issue analogous to the one with SNAP payments described throughout the thread, because our welfare programs don't work that way and our legal code isn't designed to enable the same kind of future pedantry. Besides which, the Biden and Obama administrations (and others before them) didn't even attempt this as far as I'm aware, despite that the US penny being costly for quite some time. (As far as I can tell, the current cost is mostly not due to the cost of the base metal, which is almost all zinc since 1982. Checking commodity prices and doing some back of the envelope math, switching back to copper would cost them an additional two cents per penny.)

Analemma_
6d ago
8 replies
Honestly nickels and dimes, and maybe even quarters, should go too. It's ridiculous that we don't have $1 and $2 coins in widespread circulation in the US (we have a $1 coin but nobody uses it).
JohnFen
6d ago
3 replies
I'd mourn the loss of the quarter. I use those quite often.

> (we have a $1 coin but nobody uses it)

Because they keep designing it in the stupidest way, making it easy to confuse with a quarter. I don't know why they do that.

That said, I do prefer paper $1 bills over coins. Paper is lighter and easier to carry. But I'd only slightly grumble if we replaced it with a reasonable coin.

terminalshort
6d ago
2 replies
It's a completely different color than a quarter.
JohnFen
6d ago
3 replies
That doesn't help if you're in dim lighting or have vision problems.
45764986
6d ago
1 reply
If you have vision problems, US currency is totally unfriendly to you. Unlike other countries, which have bills of different sizes, all the US currency bills are the same size, so getting change as a blind person is basically relying on the honesty of whoever is behind the counter.
JohnFen
6d ago
Absolutely true. It's one of the several crazy design problems with US paper currency.
terminalshort
6d ago
1 reply
That would explain why 1% of people don't use the $1 coin. It doesn't explain the other 99%.
pavel_lishin
6d ago
1 reply
99% of people have Darkvision? What is this, a D&D party?
terminalshort
6d ago
Yeah, since I often buy things with cash in places that are so dark I can't see the coins that's a major consideration for me. JFC what planet do you live on?
basscomm
6d ago
1 reply
That's why the dollar coin was redesigned in 2000. The old dollar coin had a reeded edge that was too similar to a quarter, so it was sometimes hard to distinguish if you had vision issues (or if you didn't have vision issues because they were about the same size as a quarter). The new ones have a smooth edge so you can tell them apart from quarters without having to look at them
JohnFen
6d ago
True, and the new design is better than the old because of it. But it hasn't resolved the issue enough to really matter. Some less subtle physical difference is required -- put a hole in it, make it an obviously unique size, whatever.

At least that's how it seems to me. It's an interesting design issue. I don't personally care too much -- I'm fine with the paper bill -- but I do have curiosity about why the coin designers have made the decisions they did about the $1 coin.

pavel_lishin
6d ago
If your fingertips can sense the color of things in your pocket, I'd love to learn more.
basscomm
6d ago
> That said, I do prefer paper $1 bills over coins. Paper is lighter and easier to carry.

Sure, but how many $1 bills do you typically carry around? If it's more than four, then you can trade them in for a $5 bill just about anywhere.

panzagl
6d ago
Bring back the Eisenhower dollar!
basscomm
6d ago
4 replies
We also have a $2 bill that nobody uses for whatever reason.

I never understood the objections to the $1 coin, especially after the redesign to make it more distinct from a quarter. $1 coins are great for buying stuff out of vending machines since you don't have to fight with a dodgy bill acceptor or a mangled bill.

devmor
6d ago
1 reply
> We also have a $2 bill that nobody uses for whatever reason.

It’s because retailers wont accept them - they think they’re counterfeit because no one uses them. A catch-22 situation, really.

JohnFen
6d ago
2 replies
I've never had a retailer refuse to accept a $2 bill, although a couple of times the clerk summoned the manager about it.

But I've never found a retailer willing to give a $2 bill as change.

The resistance to the $2 bill is a very weird cultural thing.

toast0
6d ago
1 reply
> But I've never found a retailer willing to give a $2 bill as change.

Mostly retailers don't stock $2 bills (because they're weird), so if a customer brings a $2, the cashier will put it in their their exceptional bills area, which usually is just large bills. No change is made with exceptional bills, so twos don't get recirculated.

ssl-3
6d ago
It's hard to even get $10 bills in change these days because of the ways that retailers handle putting larger bills into the safe, and getting smaller bills for change out of the safe.

"Alright. Your total is $25.13. You're paying with $100? No, no, it's fine; I just hope you like fives and ones."

ewoodrich
6d ago
Dispensaries in OR/WA love $2 bills, for some chains they're as unremarkable as a $1 and must special request them in bulk to keep on hand for making change.
orangecat
6d ago
1 reply
Yeah. My proposal would be to have 10 cent, 50 cent, and $1 coins (rounding everything to the nearest 10 cents), with $2 the smallest bill. And probably you could drop the $5 bill at that point.
ianferrel
6d ago
3 replies
There's a lot of physical infrastructure that works with quarters, and it's probably not worth giving that up for slightly improved coinage. Just drop all the coins smaller than a quarter.
toast0
6d ago
There's also the 3rd amendment. It would be worthless to say soldiers can't demand change for the vending machine, when nobody at all can get quarters.
orangecat
6d ago
There's a lot of physical infrastructure that works with quarters

Very good point and I think I'm convinced.

basscomm
6d ago
That only works if you completely reconfigure sales tax
silisili
6d ago
1 reply
My only real objection I guess, and the reason I don't carry change of any sort, is because it's constantly falling out of my pockets. I'm rather tall, so many seating positions put my knees higher than my waist, which I think contributes to that.

Further, since I don't have enough pockets to have a dedicated change pocket, it's always getting caught up in my keys and/or pocket knife.

Nobody really gave us training on this stuff, do other countries use a coin purse or some such?

Lastly, they're just comparatively heavy.

I just carry cash around in either a clip or a "front pocket wallet" I think they're called, and it seems more convenient all around.

basscomm
6d ago
> Nobody really gave us training on this stuff, do other countries use a coin purse or some such?

Americans also use coin purses or rubber coin pouches, but I mostly only see older generations using them.

acheron
6d ago
This was a whole thing in the 70s. There was a 3 step plan:

1) Bring back the $2 bill (it had not been printed for a decade+)

2) Redesign the $1 coin (Eisenhowers being too big and heavy)

3) Stop printing $1 bills

Unfortunately they never got to step 3, which made 1 and 2 pointless, and here we are.

delecti
6d ago
1 reply
Quarters might be premature, but the half-cent was discontinued when it was worth a (modern equivalent) of $0.12-17. Even 20-30 years ago, when I was just starting to interact with money enough to have an opinion, I thought it was a hassle to deal with anything smaller than a quarter. The same logic behind getting rid of pennies (they cost more to make than the face value) also supports doing at least nickels.
JohnFen
6d ago
1 reply
> The same logic behind getting rid of pennies (they cost more to make than the face value)

I've honestly never understood why this is a valid reason to object to the coin. Coins aren't used only once, so that they cost most to make than their face value doesn't seem very important, unless the differential is much, much larger than it actually is.

delecti
6d ago
I get what you mean, but the Mint does "sell" currency in a sense, so it's not a terrible point to make. It also serves as a decent benchmark for the "should we even bother" aspect; should we lose money by literally making money?
mkehrt
6d ago
2 replies
Sorry Europe and Canada, $1 and $2 coins are just absolutely terrible. I never want to have to think about where my change is. Bills are much lighter than coins and stack with the rest of the bills.
ecshafer
6d ago
1 reply
I want to get rid of bills and move to only coins. We can carry coin pouches and act like a medieval/fantasy novel character.
balamatom
6d ago
1 reply
IMO best would be some kind of money where you could physically break a given piece of cash into two pieces of half the value.
mkehrt
5d ago
1 reply
So pieces of eight?
balamatom
4d ago
Pieces of thirty would let you split the booty 2-, 3-, or 5-way.
emodendroket
6d ago
When I was in Japan everything was all-cash and the smallest bill was the equivalent of a $10, with equivalents to $1 and $5 coins being in common circulation. Most wallets they sold/people had had a coin pocket to account for this.
Brendinooo
6d ago
Nickels and dimes certainly have predecent. When the US killed the half-penny in 1857, it had a purchasing power of somewhere around 19 cents from 2024.
CGMthrowaway
6d ago
Used to use dollar coins at toll booths all the time. That was before ez pass
nicole_express
6d ago
Honestly I'd rather just not have coins at that point, rather than try to push $1 and $2 coins. Then I can just carry my wallet for bills and not have to worry about keeping track of coins separately.

Gotta do something to make the $2 bill popular though, no idea how.

BenoitEssiambre
6d ago
At least nickels should go so we can always round by one digit.
MrHeather
6d ago
7 replies
>But with 20 million customers a year, and 17% of them paying with cash, the policy will eventually cost Kwik Trip a couple of million dollars a year, McHugh said.

If we figure two-fifths of cash transactions need to be rounded up and the store is losing an average of 1.5 cents each time, their expected losses would be around $2,000, yeah?

patch_collector
6d ago
1 reply
20m customers * 17% * 4 cents * 'x' transactions per customer = $136,000 * x

I suppose this makes some sense. In a worst case situation, if every customer makes 10-20 transactions per year, and they always round down the maximum possible amount, they would lose millions per year.

tengbretson
6d ago
In many parts of Wisconsin the value of `x` could very easily be 100+, so I'd say this checks out.
delecti
6d ago
3 replies
> Kwik Trip, a family-owned convenience store chain that operates in the Midwest, decided to round down cash purchases in stores where it hasn’t been able to find pennies.

They're rounding all cash transactions down to the nearest nickel, so an average of 2 cents per transaction, 3.4 million customers, gives me $68,000 assuming each "customer" makes a single transaction per year. If they mean that there are 20 million unique customers, not 20m transactions, then the a long tail of customers who make frequent small transactions in cash could make their claim check out.

giantg2
6d ago
1 reply
I would bet they have a way to write it off.

Edit: why disagree? Can't the write it off as a loss, uncollected account, or promotional? Maybe even goodwill

toast0
6d ago
1 reply
Writing it off as a loss isn't useful.

Without a write off, their income is $X (what they actually collected), with a write off, their income is $Z (what they should have collected) - $Y (what they didn't collect), but $X = $Z - $Y. There's no material difference between counting what they actual collect as income vs what they should have collected minus the goodwill discount. Unless there's some specific tax justification (maybe accounting differences could justify remitting less sales tax overall and retaining more of the funds, etc)

giantg2
6d ago
Why wouldn't the write off be useful? I think your formual needs to add "+ ($Y x .3)" for tax deduction if you frame as promotional or other tax write off strategies.

It won't be the same as what they would have collected without rounding, but it will be better than if you didn't write off anything.

velcrovan
6d ago
Whatever the total ends up being, it's basically a marketing expense that they're electing to make. Probably they do it for a year and then switch to rounding to the nearest nickel, which is what everyone else will be doing.
pants2
6d ago
Certianly the costs in employee time making change in pennies and stocking / transporting / changing pennies is way higher
smelendez
6d ago
1 reply
They must mean unique customers, not customer transactions.

They have about 878 stores, according to Wikipedia, so if it was transactions, each store would only see about 62 transactions per day, which is way too low.

terminalshort
6d ago
Sure. But multiply by whatever number you want and it is still the same percentage of revenue.
terminalshort
6d ago
1 reply
I get $20,400 (20m * 17% * 40% * 0.015). But that's still nothing for a company that does 20 million POS transactions a year.
jermaustin1
6d ago
It's cheaper than the credit card fees, that's for sure.
paxys
6d ago
1 reply
20 million customers doesn't mean 20 million transactions. Considering we are talking about a convenience store I'm sure a large chunk of their customers visit every day, some probably multiple times a day.

Assuming 3.4 million customers (cash users) and 2.5 cents average loss per transaction, it would only take one visit a month for them to cross a million dollars in losses.

Of course at that scale it's not like that million or two is really making a difference to their bottom line. Doing some quick Googling their annual revenue is estimated to be $6-7 billion.

Jblx2
6d ago
1 reply
>visit every day, some probably multiple times a day

Anyone have data on what percentage of the population visits convenience stores 500+ times per year? Sounds pretty inconvenient.

axiolite
5d ago
Plenty of people stop somewhere to get hot breakfast and coffee every day. If you also need something that can't set in your car all day (e.g. milk) that would be a second trip in a day.

Whether that's convenient or not depends on location... If it's right off your route to work/home, a stop may only add a couple minutes to your drive.

pavel_lishin
6d ago
If we make the maximally pessimistic assumption that every cash transaction would require rounding down four cents, that's 68,000 customers per year times four cents, which is $136,000 per year.

A more reasonable assumption that half of transactions require rounding down cuts that in half, I suppose.

pessimizer
6d ago
What's more contemptible: that CNN refused to spend the 30 seconds that it would take to do the math; or that it interviewed a "spokesman" that also didn't spend 30 seconds to do the math, and was sure that nobody would check?

This is the kind of article that should be written by AI (or not written, really.) If you completely fictionalized the empty interviews, nothing would be lost.

Maybe the "spokesman" has been told to angle for a government subsidy for the inconvenience of losing pennies? And from a gas station, which add that goofy fraction of a cent at the end of their pricing.

UltraSane
6d ago
2 replies
could get rid of dimes and nickels as well.
45764986
6d ago
Yes. I used to work at a movie theater, where all transactions were to the nearest $0.25 because it made it easier for the kids like me behind the counter to count the change and not lose track... seemed sensible at the time and that was 20 years ago.
guywithahat
6d ago
It would be cool to remove the hundredth place in general; just dimes and half dollars, although I don't see that happening any time soon
didgetmaster
6d ago
4 replies
Many are reporting this as if failing to mint new pennies each year is going to produce some kind of shortage. There are billions of pennies sitting in drawers or jars in homes across the nation (I certainly have one with about a thousand pennies in it).

I doubt anyone who needs a penny will be unable to find one within the next 100 years.

JohnFen
6d ago
3 replies
Most of the stores in my area have started requiring people to pay with exact change or by card because they can't get pennies to make change.

Personally, I think stores should just start setting prices to avoid the need for pennies, but that would be too easy, I guess.

knollimar
6d ago
3 replies
If your sales tax rate is 8.875%, what do you price a banana at to avoid change?
randerson
6d ago
1 reply
This problem is easily solved in countries that use VAT
knollimar
6d ago
It really isn't; it's just acceptable to accumulate this rounding error I'm implying in those countries. Which is fine, but should be acknowledged.
carlosjobim
6d ago
1 reply
You price it including sales tax. Sticker price is final price.
rufus_foreman
6d ago
2 replies
If someone is buying a banana for resale, or buying with WIC or SNAP benefits (among other things), they would not owe sales tax. So if the price included sales tax, the sticker price would not be the final price.

You do not know the final price until you know how they are paying for it, what they are using it for, and when they are buying it (among other things).

Falsehoods programmers believe about sales tax (among other things).

carlosjobim
6d ago
Then that discount can be deducted by the cash register when it's time to pay.
knollimar
6d ago
this is me preempting: yes I know I picked a bad example since produce isn't often taxed. Assume it's a prepackaged organic banana.
micromacrofoot
6d ago
$10
ianferrel
6d ago
4 replies
Setting prices to avoid the need for pennies is probably technically challenging given the combination of requirements to post prices and sales taxes that don't always round the same way.

If the effective tax rate is 7.432%, you can price single items so that the price plus tax ends up in a multiple of $0.05, but if you get a purchase with multiple items, you either need to round somewhere or post prices that are like $9.346263437.

thayne
6d ago
2 replies
sales tax should be charged per item, not for the total transaction, so that it's possible to list prices that include the sales tax.
MrZander
6d ago
1 reply
Sales tax varies by state/county/city. It is generally not cost-effective to have each individual store label all their products with local sales taxes applied.
ryandrake
6d ago
1 reply
I see this excuse all the time, but why not? This calculation does not need to happen more often than the product prices are adjusted. There's no difference in effort between labeling something "$5.52+tax" and labeling it "$6".
MrZander
6d ago
1 reply
The difference is where the product is labeled. Is it labeled nationally like Arizona Iced Tea? Is it labeled at a regional bottling facility? Or is it labeled at the store itself? And what about when tax rates change, you gonna go pull all the labels off everything in the whole store and update them?

Most of this could be resolved by not putting the prices on the products themselves, but that isn't as good of an experience for the shopper.

thayne
6d ago
> Most of this could be resolved by not putting the prices on the products themselves

That is already often the case. Prices are usually on the shelves not on the product itself at many stores. And when purchasing online there is no reason that the sales tax couldn't be included in the listed price.

Also sellers could just charge the same price everywhere and take the sales tax out of the revenue.

nkrisc
6d ago
It generally is, or at least per category of items. Different items can have different (or none) sales tax rates.
timeinput
6d ago
1 reply
Imagine a world where they just posted the price you would pay at the register on the shelf instead of some number that is ~93.082% of the price you would pay.

I know it's hard to imagine the price on the shelf being the price that you pay, but I believe it is possible even in complex tax situations.

ianferrel
6d ago
2 replies
I live where there is no sales tax, so it's not hard to imagine!

But good luck convincing every state, county, municipality, and other weird governing body that requires something other than that and also collects a weird sales tax.

Or go with the solution that papers over all that nonsense: a flexible and maximum $0.04 per purchase discount.

gblargg
6d ago
1 reply
What if businesses issues their own penny coupons that could be used in future purchases? If you bought from there regularly you'd on average only have a couple of them.
ianferrel
6d ago
This is what happens when you wish on a monkey's paw to get rid of pennies.
timeinput
6d ago
I mean it's not on the state, county, municipality, or weird governing body to put the prices on the shelf at the store. Nation wide advertising might be different (is that still a thing? There were always asterisks that made a dollar menu not always a dollar anyway), but the literal price on the shelf / menu / ... at any given physical building could price things appropriately for the physical location that they are on.

I live in a place with a fixed VAT (that is included in the price on the shelf / menu / ...), but grew up in the US in several different weirdly taxed localities. It's just such a silly argument to say "we can't write the correct price on the shelf because the laws vary." The register knows the correct price, the labels on the shelf are computer generated, and updated regularly. The labels at many nation wide fast food type places are displays anyway.

If Baarle-Hertog and Baarle-Nassau can make it work I feel like it's at least imaginable that stores that already automate this weird complex tax code could print accurate labels instead of inaccurate labels, with an accurate calculation at sales time.

madcaptenor
6d ago
For example, $0.93 * 1.07432 = is $0.9991176 exactly, which rounds to $1.00. But if you buy a dozen such items then $0.93 * 12 * 1.07432 = $11.9894112 exactly, which rounds to $11.99.
JohnFen
6d ago
Good point. I forgot about sales tax. That also seems fixable by adjusting tax law, but adjusting law is always more hassle.
jandrewrogers
6d ago
It isn't that simple. There are stacked tax jurisdictions that can change their fraction of the tax independently. Some of those taxes are conditional at point-of-sale so the exact rate varies from customer to customer.

It is a mess but also not easy to unwind or patch over.

c22
6d ago
2 replies
There's a cash-heavy business I work with that's already having a hard time sourcing the pennies they need. I guess they're all in a jar under your desk.
MangoToupe
6d ago
1 reply
I have a hard time believing any business relies on access to Pennies when all cash transactions can be rounded to a nickel in some way amenable to both parties. I imagine most customers just don’t give a damn.
c22
6d ago
I'm pretty sure they're considering doing this, but I don't know what all the pros and cons or complexities are.
didgetmaster
6d ago
2 replies
It seems to me that if there was truly a shortage of pennies, banks could offer to pay 2 cents for every penny someone turned in (still far cheaper than minting a new one) and enough people would pull out their penny jars and cash them in.
allknowingfrog
6d ago
That...actually seems economically sound, but it's also a strong argument for the idea that pennies are effectively worthless.
c22
6d ago
Now we've unlocked a new lucrative business model where we can cut the customer out entirely! Simply buy pennies from the bank on the dollar and sell them back for 100% profit...
embedding-shape
6d ago
1 reply
> I doubt anyone who needs a penny will be unable to find one within the next 100 years.

Based on my experience with the universe, this ability of being able to find something whenever you need it, only happens until you start expecting it and when you really need it, you're not gonna be able to find it anywhere. Maybe "Murphy's law" isn't what I'm looking for but something similar? For when what you really need is no longer there, universe always works against you? Can't recall.

johnisgood
6d ago
Selective attention or confirmation bias with a hint of cosmic irony?
mrweasel
6d ago
I don't know how accurate this is, but someone posted on Reddit some Burger King is already having a hard time getting pennies from their bank: https://old.reddit.com/r/mildlyinteresting/comments/1opdlm2/...
nayuki
6d ago
1 reply
We eliminated pennies in Canada in 2012 and the transition was a non-issue. The vast majority of retailers would round cash transactions to the nearest $0.05, but a few would round down to the nearest $0.05 in favor of the customer. https://en.wikipedia.org/wiki/Withdrawal_of_low-denomination...

Canadian cash is better than American cash in several ways: No penny, durable polymer banknotes (instead of dirty wrinkly cotton paper), colorful banknotes (instead of all green) that are easy to distinguish, $1 and $2 coins in wide circulation (instead of worn-out $1 bills).

simonw
6d ago
1 reply
The linked article raises a few problems that the US could have with that solution:

> Four states - Delaware, Connecticut, Michigan and Oregon - as well as numerous cities, including New York, Philadelphia, Miami and Washington, DC, require merchants to provide exact change.

delecti
6d ago
2 replies
If the US properly got rid of pennies (instead of Trump just doing another end-run around congress, by ordering the Mint to stop making them, on shaky legal ground), the legislation could easily supersede those state laws.
throwawaymaths
6d ago
1 reply
What exactly is the law?

Can you show me the statute requiring the treasury department to coin pennies?

delecti
6d ago
1 reply
Article 1, Section 8 of the constitution gives Congress the authority responsibility to coin money. And in the coinage act of 1792, 31 USC 5111(a)(1), congress directs that the treasury "shall mint and issue coins described in section 5112 of this title in amounts the Secretary decides are necessary to meet the needs of the United States", with the list in section 5112 explicitly listing the penny (31 USC 5112(a)(6)). It's clearly intended to instruct the treasury to mint pennies without congress needing to proscribe the varying amount every year. It also clearly demonstrates the intent that pennies "shall" be produced.

https://spectrumlocalnews.com/mo/st-louis/politics/2025/04/3... https://www.law.cornell.edu/uscode/text/31/5111 https://www.law.cornell.edu/uscode/text/31/5112

The fact that all of that gives leeway for "'none' is all that's necessary" is why I said the legal basis was "shaky" and not "baseless". I think getting rid of pennies is good, but this is something that Congress needs to do, rather than continually abdicating its responsibilities.

throwawaymaths
4d ago
Exactly. I believe the treasury will continue minting commemorative pennies, which would even not make it "none" and give a stronger argument that "well yeah we are meeting the [numismatic] needs"
mjd
6d ago
1 reply
I think this is wrong.

As far as I can tell the relevant statute is 31 USC §5112, and it does not require the minting of all authorized coins:

“(a) The Secretary of the Treasury *may mint* and issue only the following coins: ... (6) ... a one-cent coin that is 0.75 inch in diameter and weighs 3.11 grams.”

(Emphasis mine)

There may be another clause somewhere that requires the Treasury to issue all coins, but that seems unlikely to me. The _number_ of coins to issue of each type is left to the discretion of the Treasury; why wouldn't that include the option to issue none?

https://www.law.cornell.edu/uscode/text/31/5112

delecti
6d ago
1 reply
I addressed in another reply that "'none' is all that's necessary" is probably a defensible interpretation of the law (the more relevant portion being in 5111 rather than 5112), but the penny being explicitly listed makes it clearly not the intention of congress. That's why I said it's a "shaky" and not "baseless" legal ground. The law is clearly written with the expectation that there will be some, which is why Congress felt the need to pass the Coinage Act of 1857 to phase out the half cent.

I think we should get rid of the penny, but it's Congress's responsibility to do that, and they haven't. I'm opposed to Congress abdicating its power and responsibility like that.

mjd
6d ago
You're right, 5111 is more pertinent here.

5111(a)(1) says “shall mint and issue coins” but qualifies it explicitly with “in amounts the Secretary decides are necessary to meet the needs of the United States”. This is a clear delegation of authority.

If you don't think zero pennies is a permissible amount, what about one penny? Two? What minimum number are you arguing for here, and what's your justification for it?

If Congress had wanted to set a minimum number, they could have done so.

Reading it as ”shall mint” is wrong, I think. “Shall” qualifies the whole clause “mint in amounts the Secretary decides (etc.)”.

Understood that way, 5111 makes it unlawful to mint any pennies if the Secretary decides that none are necessary.

drsopp
6d ago
Oo, I'd like to get a roll of these. But I live in Norway.

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