TORONTO, Ont. – Businesses have begun phasing out the penny after the Federal Government announced in 2012 that the penny would no longer be used.
Most business will accept the penny in cash payments until July 1, 2013, debit and credit card payments will not be affected by the phase out.
Businesses in the Newmarket area are encouraged to begin rounding prices up or down to the nearest five-cents as of February 4, 2013.
Business Strategy for Rounding
Residents can return pennies to banks indefinitely as long as they are rolled. Check with your financial institution on penny redemption.
The Canadian Government announced in the Economic Action Plan 2012, that the penny would be phased out of the Canadian coinage system due to its excessive and cost of production relative to its face value.
The phase out comes as a savings of $11-million annually for taxpayers.
Guidelines issued by the Federal government state that business can round, either up or down, to the nearest five-cent increment.
A survey by the Retail Council of Canada reported that more than 56-percent of retailers plan on using the voluntary government guidelines.
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More people using debit or credit cards and not cash, rounding up to the nearest nickel,
How is this saving retailers or consumers money……11million in the big picture of government spending seems like very little. Again, can we not produce this coin any cheaper??
There will be no savings for taxpayers. Expect all prices to be rounded UP. When we were forced to convert to metric, the sizing changes all worked to the retailer/manufacturer’s advantage! Their excuse will be= we need the increase to cover our “expenses” !!
well I suppose the gas stations are a big winner in this one pump away folks
I get that that the penny costs more to produce then it is worth but it was functional. Could it really not be made from an alloy that was cheap and lasting in order to be cost effective? I will not accept rounding down. If that means using my credit card for a stick of gum so be it (and I get points). This will cost retailers more in transaction fees which they will of course pass onto consumers. Those retailers who won’t accept credit cards for small purchases, I will go elsewhere, buy bulk or do without. We are moving quickly to a cashless society.
So it’s the business owners fault that the penny is discontinued and we lose your business to boot? Huh….that’s fair.
And yet there was no funeral nor remembrance service for the penny for its long canadian history… how sad ;(
Why are any prices being changed? When Australia eliminated their penny (and their 2¢ coin), prices weren’t changed. Why? Because you never know what the final transaction amount will be. Multiple items. Sales taxes (their GST is built in to the final price, where applicable). There is no way a retailer could know whether a final transaction is going to be rounding up, down, or not changing. What a waste of time, effort and money, especially when our payments/banking system tells us that over half of consumer transactions are not paid for with cash.
I wonder if the CONservative government bought the brand, “Round Up” from Monsanto?