The concept of penny-pinching ended for Canadians in February, but only in the figurative sense. Now that the one-cent coin is obsolete, individuals and businesses have had to adapt to a new method of buying and selling goods.Since the penny went out of circulation February 4, 2013, businesses had to change the way they conduct sales. Cash transactions are now rounded to the closest five-cent increment, while debit or credit sales will not be affected.
Canadians are still able to redeem their pennies at full value and about 6 billion expected to be turned in over the next six years, The Financial Post reports. The Royal Canadian Mint estimates that it will cost about $53 million to reimburse people for their coins and an additional $27 million for administrative costs associated with the change. However, recycling the metal from the pennies will bring in revenue in excess of $42.5 million.
While the change saved the federal government approximately $11 million in production costs each year, it may be placing a bigger burden on taxpayers and businesses. Companies have to adjust to the new rules and get technology that will work in line with the regulations, which may pose an additional burden on small businesses.
Despite these changes, there hasn't been government-imposed rules enforcing the new policies, leaving many businesses left to fend for themselves in these uncharted waters. It should be interesting to see how businesses and the retail sector continue to adapt.
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