How This May Impact Your Business
As the circulation of pennies continues to decline following the end of production by the U.S. Mint, we’re here to help you stay informed during the transition.
The Federal Reserve has ceased fulfilling penny orders at many coin distribution locations, after previously rationing its limited inventory. While pennies remain legal tender, their availability is diminishing as existing supplies are depleted and not replenished. This change is impacting coin inventories at all Bangor Savings Bank branches, as well as other financial institutions nationwide. As a result, requests for penny rolls may be limited or unavailable, depending on local inventory levels.
How Your Business Can Prepare
Businesses may experience coin shortages, complicating transactions that require exact change. With fewer pennies in circulation, businesses should proactively update their cash-handling procedures.
- To navigate coin shortages, businesses can consider rounding cash transactions.
- Ensure customers are informed about the penny shortage and any changes in payment practices by posting signage and offering clear communication at the point of sale.
- Update Point-of-Sale (POS) Systems to handle rounding automatically for cash transactions.
- Encourage use of electronic payments to reduce customer inconvenience as they will remain unaffected by the phase-out of the penny.
- Transactions made with credit or debit cards will continue to be processed at their exact amounts, without any rounding.
- Monitor regulations and consult your tax advisor.
Key Considerations
- Understand the impact: Encourage teams to recognize how the phase-out may affect cash transactions and customer experience.
- Follow rounding guidance: Per Federal Reserve recommendations, cash transactions should be rounded to the nearest nickel.
- Nickel supply: Maintain an adequate supply of nickels to support smooth rounding at the register.
- Educate employees: Educate and train employees on rounding procedures and update internal protocols accordingly.
- Provide talking points: Equip employees with clear scripts to explain changes to customers confidently and consistently.
- Review coin inventory practices: Ensure procedures are in place to monitor and respond to coin shortages effectively.
How We're Supporting You
As the U.S. Treasury phases out penny production, we recognize the impact this change may have on consumers and businesses.
- We’re closely monitoring penny supply at our locations and working to manage it efficiently.
- We’ll continue to provide resources and guidance as new information becomes available.
Limited penny availability: Banks and businesses will have fewer pennies on hand, which may affect your ability to receive or exchange them during cash transactions. To manage supply, many banks, including Bangor Savings Bank may have to place limits on penny distribution until supplies are depleted.
Learn More about the Penny Phase-Out
Learn how Bangor Savings Bank will be rounding cash payouts, the penny phase-out timeline, consumer customer resources, and frequently asked questions.
We’re Here to Help!
If you have questions or need assistance, stop by your nearest Bangor Savings Bank branch or contact our Bangor Support team.