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Canada To Stop Producing Pennies In 2013

timothy posted about a year ago | from the thought-they-were-made-here-in-america dept.

Canada 362

First time accepted submitter master_kaos writes "Canada is going to stop producing pennies in February 2013 to help save the tax payers $11 million per year. Cash transactions will be rounded to the nearest nickel. Cheque/Credit Card transactions are not affected."

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Excellent; (1)

Samantha Wright (1324923) | about a year ago | (#42465689)

Now we can just keep around stacks of cheques for one to four cents, and deliver to shopkeepers as needed.

...but honestly, I doubt the penny will vanish for another couple of years. Coin jars, coin jars everywhere.

Re:Excellent; (0)

Anonymous Coward | about a year ago | (#42465741)

You can take the pennies to the bank and deposit them, but retailers won't accept them.

Re:Excellent; (1)

skade88 (1750548) | about a year ago | (#42465769)

The metal used to make a penny has to be worth more than the penny's currency value.

Re:Excellent; (2)

minogully (1855264) | about a year ago | (#42465873)

Yes, you're right, it costs 1.6 cents per penny.

citation: metro news [metronews.ca]

Re:Excellent; (4, Insightful)

icebike (68054) | about a year ago | (#42466055)

Yes, you're right, it costs 1.6 cents per penny.

citation: metro news [metronews.ca]

No, that is not right. Your own source specifies that 1.6 cents is the MANUFACTURING cost, not the price of the metal in the penny.

If the metal in the penny was worth more than the penny people would be melting them down, as they did with gold coins. Clearly that is not happening.

Re:Excellent; (3, Informative)

minogully (1855264) | about a year ago | (#42466391)

Sorry, totally my fault, I was reading too quickly and I didn't read the first part of your sentence - "The metal used to make"

Thanks for the correction, I don't want to mislead anyone.

Re:Excellent; (1)

BennyB2k4 (799512) | about a year ago | (#42466109)

This is especially true for pre-1996 pennies, which are 98% copper. roughly 3-4 cents per penny depending on the current copper price.

Re:Excellent; (4, Insightful)

RajivSLK (398494) | about a year ago | (#42466265)

The reason the penny costs so much to keep in circulation is not solely the cost of minting. If a penny costs $0.02 to mint but is used in 10,000 transaction in it's life time that would be ok.

The problem with the penny is that they don't get spent. The mint needs to keep producing new ones for retailers to give out and people go home and throw them in a coffee can.

Oddly, this is the exact argument in favour of $1, $2, and $5 coins. People don't spend coins as easily, they tend fall between couch cushions or collect in jars. Until those jars are emptied, and the couch cleaned those coins are basically a kind of interest free loan the government.

Re:Excellent; (5, Informative)

Capt.DrumkenBum (1173011) | about a year ago | (#42465791)

Did you miss the part where it said purchases would be rounded to the nearest nickle?
As a Canadian I can tell you that the pennies will disappear quickly, because the banks have been told to collect them.
The place I get my morning breakfast has already started rounding to the nearest nickle. My breakfast comes to $3.66 total, and I am always asked for $3.65

I for one, say "About bloody time!"

Hidden-ish cost (0)

ThatsNotPudding (1045640) | about a year ago | (#42466037)

My breakfast comes to $3.66 total, and I am always asked for $3.65

Except next month ALL the items on the menu WILL be rounded UP by a nickel (or maybe a even dime) to lock-in some one-time profits.

Re:Hidden-ish cost (4, Informative)

localman57 (1340533) | about a year ago | (#42466063)

There's nothing to stop them from doing that now... If the market will support it, they'll raise prices. Just like now...

Re:Hidden-ish cost (1)

dimeglio (456244) | about a year ago | (#42466197)

Pay with a credit card then.

Re:Excellent; (3, Insightful)

SerpentMage (13390) | about a year ago | (#42466119)

What's a penny? What's a nickel? ;)

Here in Switzerland we have done away with them since a very very very long time ago. BTW a Swiss Franc is slightly worth more than a USD or CAD. I personally prefer it that way. Actually I prefer the debit transaction system we have. I can have a 100 CHF in my pockets and it will last me for about 1 to 2 months.

The one dollar bill of the US just confounds me.

Re:Excellent; (0)

icebike (68054) | about a year ago | (#42466137)

Did you miss the part where it said purchases would be rounded to the nearest nickle?
My breakfast comes to $3.66 total, and I am always asked for $3.65

I suggest your experience will prove to be atypical.

In most cases rounding will go UP by a penny or four, because of the tendency to price things at xxx.99.
Over the course of the a typical year, I suspect this will cost the Canadian tax payers much more than the 11 million that dropping the penny was supposed to save, because retailers will round ALL prices up to the next nickle, whether payment is by cash, credit, or check.

Yes, I know the definition of rounding, but mark my words, nobody will be rounding down.

Re:Excellent; (1)

Anonymous Coward | about a year ago | (#42466151)

Did you miss the part where it said only CASH transactions would be rounded? Seems to me that cash transactions themselves are becoming increasingly rare and this is a pretty big non-issue in a plastic money world.

Re:Excellent; (1)

theJML (911853) | about a year ago | (#42466317)

This is an interesting part. I've noticed recently there have been more and more places where the Cash price differs from the Credit price. It used to be this way growing up, and they're going back to it because of all the problems and costs associated with Credit. And yes, it's Cheaper to pay with Cash. (a few gas stations here charge 10 cents or more per gallon for credit over cash transactions.)

Re:Excellent; (1)

icebike (68054) | about a year ago | (#42466323)

Did you miss the part where it said only CASH transactions would be rounded? Seems to me that cash transactions themselves are becoming increasingly rare and this is a pretty big non-issue in a plastic money world.

Have you ever run a business? Having a books balancing issue because a even few transactions are in cash will encourage all prices to the nearest nickle. Its just too much of a hassle to have every transaction in the cash register off by a couple cents. Cash businesses would go nuts trying to get their books to balance.

Re:Excellent; (3, Interesting)

Garridan (597129) | about a year ago | (#42466209)

Damn straight! As an American expat in Canada, I truly truly hate returning to the states and getting a wallet full of ones. Having $1 and $2 coins makes money so much easier to deal with. I say let's go the next step now: throw out the nickel and quarter, and give us a $.50 piece.

Re:Excellent; (1)

AndyKron (937105) | about a year ago | (#42466241)

I like your tagline!

Re:Excellent; (1)

Samantha Wright (1324923) | about a year ago | (#42466257)

Silly! Of course not. That doesn't mean I won't do it anyway.

Re:Excellent; (1)

ZzzzSleep (606571) | about a year ago | (#42466455)

Oddly enough, this didn't happen in Australia when we got rid of our 1 and 2 cent coins back in 1991.

Re:Excellent; (1)

Anonymous Coward | about a year ago | (#42466291)

I for one, say "About bloody time!"

The savings is obscene!! What are you going to do with your share of the $11M (uh... $0.32)?

Re:Excellent; (0)

Anonymous Coward | about a year ago | (#42465809)

We made away with them in about a year in Finland.
Stores kept accepting them for 1 year, then only banks accepted them.
It was the same when we transitioned from the Finnish mark to euro.
I am unsure if even banks accept 1 and 2 cent coins these days.

Rounded... (1)

Anonymous Coward | about a year ago | (#42465733)

Up or Down in the customer's favor?

Ask a stupid question... (0, Flamebait)

Chas (5144) | about a year ago | (#42465775)

Why the transaction will ALWAYS be in the merchant's favor of course!

Re:Ask a stupid question... (1)

Capt.DrumkenBum (1173011) | about a year ago | (#42465883)

Why the transaction will ALWAYS be in the merchant's favor of course!

I really doubt this will happen. For the 3 to 4 cents you might gain it is just not worth the risk that someone might pull out their phone, calculate it and throw a major fit in your store. Even if no one ever throws a fit, word will get around, (See internet) and people will simply not shop at retailers who do this.
I usually have very little faith in people, but in this case I will tend to believe in honesty.

Re:Ask a stupid question... (1)

ais523 (1172701) | about a year ago | (#42465931)

Sensible merchants would just use divisible-by-5 prices to avoid issues with rounding.

Re:Ask a stupid question... (1)

Chaos Incarnate (772793) | about a year ago | (#42465969)

That might work in Europe, where the prices all include VAT already, but I thought Canada was like the US and added their sales tax on top of the listed price.

Advertised price 9.96 = 10.00 (1)

ZombieBraintrust (1685608) | about a year ago | (#42466001)

No Sensible merchants will use prices where the rounding is their favor. 9.96 looks like a better price than 10.00 but with the rounding it will be the same.

Re:Advertised price 9.98 = 10.00 (4, Informative)

ZombieBraintrust (1685608) | about a year ago | (#42466079)

Bad math in first post.
9.95 == 9.95
9.96 == 9.95
9.97 == 9.95
9.98 == 10.00
9.99 == 10.00
10.00 == 10.00

Re:Advertised price 9.96 = 10.00 (4, Insightful)

Electrawn (321224) | about a year ago | (#42466113)

No, Advertised price at 9.96 would round down to 9.95. Then the price should increase to 10.05 or so, then jump to 10.95.

http://en.wikipedia.org/wiki/Psychological_pricing [wikipedia.org]

Re:Advertised price 9.96 = 10.00 (1)

icebike (68054) | about a year ago | (#42466249)

This.

Plus, the rounding will present such a hassle, that pricing will all be to the nickle, nobody is going to want to balance books that could be off by several hundred dollars over the course of a busy day.

All prices will end in 0 or 5 and no merchant is going to go down, everyone will just set prices directly to the next higher multiple.

More of interest, is the sales tax. Does Canada have sales taxes anywhere? Are they going to be adjusted to the nickle as well?
Will the tax authority accept taxes that are rounded, or will the merchant have to make up the rounding when forwarding the tax?

Re:Ask a stupid question... (3, Insightful)

ToddDTaft (170931) | about a year ago | (#42466103)

Sensible merchants would just use divisible-by-5 prices to avoid issues with rounding.

This doesn't always work. A common example where it doesn't work is grocery stores where certain items are sold by weight.

Re:Ask a stupid question... (1)

mark-t (151149) | about a year ago | (#42466389)

That only works if there is no sales tax.

Re:Ask a stupid question... (1)

Obfuscant (592200) | about a year ago | (#42466351)

it is just not worth the risk that someone might pull out their phone, calculate it ...

I have no idea what the antecedent for "it" is here. Calculate what? The price rounded down? How many people will need a smartphone to calculate a rounded-to-a-nickel price? Not many.

...and people will simply not shop at retailers who do this.

People will get over this pretty quickly, if they even notice the two or three cent price increase on every product that is currently ending in 1, 2, 6 or 7. People who buy 10 widgets that used to cost $0.67 and is changed to $0.69 will pay twenty cents more overall. Everyone who buys just one will pay three cents more than they did before. Two results in a four cent increase. Three will result in a pre-rounding price of $2.07, which rounds down to $2.05, but is still four cents more than they would have paid before.

Applied to an economy as a whole, this can quickly add up to $11 million. But it's Canada, so maybe it will only be a few dollars.

I usually have very little faith in people, but in this case I will tend to believe in honesty.

Whose "honesty" are you believing in? The people who won't notice the change, or will get over it pretty quickly, or the stores who have the right to change prices when they need to?

Re:Ask a stupid question... (4, Informative)

YrWrstNtmr (564987) | about a year ago | (#42465911)

Neither. To the *nearest* 5 cent increment, be it up or down.

Let's assume the transaction is right around $1:
0.98, 0.99, 1.00 ,1.01, 1.02 = $1.00
1.03, 1.04, 1.05, 1.06, 1.07 = $1.05
1.08, 1.09, 1.10, 1.11, 1.12 = $1.10

It ends up working pretty evenly.

Re:Ask a stupid question... (0)

Anonymous Coward | about a year ago | (#42466027)

It ends up working pretty evenly.

Not when the merchant sets the price.

Re:Ask a stupid question... (1)

YrWrstNtmr (564987) | about a year ago | (#42466089)

Not when the merchant sets the price.

Yes, when I can buy more than one item at a time. The rounding is on the entire transaction.
If the customer can buy 3 or more random items at a time, please demonstrate a pricing scheme that would consistently cause the customer to pay an extra $0.02.

Re:Ask a stupid question... (1)

localman57 (1340533) | about a year ago | (#42466095)

Yes. Because they'll always be able to set the prices so that regardless of how many items you buy, the final total mod .05 will always be .01 or .02.

Oh, wait. No. That's impossible.

Jackass.

Re:Ask a stupid question... (0)

Anonymous Coward | about a year ago | (#42466413)

If they can set the prices, they can set their own rounding policy. Regardless of if they declare any transaction total ending with 0.01 or 0.02 will be rounded up, or simply rounding up every item so that it can't end in something other than a 0 or 5 (even if some things are sold by weight, they can set the scales to round each item however they want).

Of course, if they inflate prices as a result, people are free to shop elsewhere or just buy less.

Re:Ask a stupid question... (2)

ToddDTaft (170931) | about a year ago | (#42466053)

When I was in Australia in the '90s, they had already eliminated their coins smaller than 5 cents, and the common practice was to always round down cash transactions. So, if your total was $1.99 and you paid with cash, you'd only get charged $1.95. If you paid with EFTPOS (debit card) or a credit card, you'd be charged the full $1.99.

Re:Ask a stupid question... (1)

eth1 (94901) | about a year ago | (#42466295)

Why the transaction will ALWAYS be in the merchant's favor of course!

Depends. I suspect that "We always round cash down!!" will be plastered in quite a few front windows to try to attract customers. Of course it's easy for merchants to game the original price so this always works out in their favor. Depending on how much the CC companies are gouging the merchant, always rounding in the customer's favor might actually save both the customer and merchant money if more people pay cash.

In any case, I wouldn't really care. Given the amount of cash transactions I make every year, even if they cheated and rounded .01 up to .05 every time, my maximum yearly exposure would be about... $1? Maybe 2?

Re:Ask a stupid question... (1)

Darinbob (1142669) | about a year ago | (#42466401)

Not necessarily. In Finland they did the rounding too and I would sometimes get things rounded in my favor (not sure if Swedish rounding used). However the majority of the time with prepackaged goods the prices were pre-rounded anyway (and included tax). So the rounding that I noticed only came when buying something that had to be weighed.

Consider it this way. What do the stores do today if the actual price ends up with a fractional part of a penny left over? Is it rounded in your favor or towards the store's favor? Do you even care about 0.371 of a penny? So why is it a big deal when it's a fraction of a nickel?

Death to Pennies (2)

Daetrin (576516) | about a year ago | (#42466173)

I think the more important question, brought to my mind by the Death to Pennies video [youtube.com] , is whether they'll round in all cases or just when paying with cash. There's obviously no need to round if you're using a debit or credit card.

The video makes the very informative point that when you're fiddling around with actual physical pennies at the register you're wasting not only your own time, but the time of everyone in line behind you. The difference of plus or minus a couple pennies literally isn't worth the time spent dealing with them for most people, even without counting the accumulated time you're costing everyone else. I believe it was estimated that the lost opportunity cost was at _least_ an order of magnitude larger than the loss from minting the pennies.

Which means that even if stores _always_ rounded up (which they're not actually doing) you'd _still_ come out ahead in the long run just from the time you saved.

Re:Rounded... (1)

AnonyMouseCowWard (2542464) | about a year ago | (#42466267)

Both [budget.gc.ca] .

Down when it should be (0.01, 0.02, 0.06, 0.07) and up when it should be (0.03, 0.04, 0.08, 0.09).

Re:Rounded... (1)

Ozeroc (1146595) | about a year ago | (#42466409)

Well the US Military stores (BX/PX/Commissary) have been doing this in Europe for their cash transactions for a long time (at least the 10 years I've been here). Seeing a penny is pretty rare. Apparently it wasn't worth the cost to ship them here from the USA.

I'm gaming the system (0)

Anonymous Coward | about a year ago | (#42465735)

1. Buy a product that costs (x*5)+2 cents where x is a positive integer.
2. Repeat step 1 eleventy billion times.
3. Return all the items to the store in one batch
4. There is no '?????' step if you can do math
5. Profit!

--MyLongNickName

Re:I'm gaming the system (0)

Anonymous Coward | about a year ago | (#42466319)

You only get refunded for the amount on your receipt, not the price on the tag. eg: This is why store ask fore receipt. You can only gain 5 cents no matter how many billion times you repeat step one. Also you forgot to add img tag with trollface.jpg at the end. 1/10 for the attempt.

Re:I'm gaming the system (1)

mark-t (151149) | about a year ago | (#42466461)

You first.

Copper prices (-1, Flamebait)

Dunbal (464142) | about a year ago | (#42465745)

And yet governments continue business as usual as if nothing was wrong. There is no inflation. Your dollar is worth exactly the same as it was last year. Continue borrowing, continue shopping... the fact that governments can no longer even afford to mint what used to be the cheapest coin to make is not a significant sign of anything.

Re:Copper prices (1, Insightful)

skade88 (1750548) | about a year ago | (#42465825)

China and India are both transforming their economies to be more like the west, creating a larger middle class in those countries. A larger middle class wants bigger and better housing. With China and India making up almost 4 billion people together, that is a lot of new housing, and a lot of copper that needs to go into making those houses. Supply of copper has not been able to keep up with demand. How do you expect prices of copper to stay low if the demand shoots through the roof for copper and supply does not grow accordingly?

Re:Copper prices (1)

SevenTowers (525361) | about a year ago | (#42466381)

India and China don't even total 3 billion people together.

Re:Copper prices (1)

MrEricSir (398214) | about a year ago | (#42465827)

Since when has a low inflation rate been a bad thing?

Re:Copper prices (2)

alexander_686 (957440) | about a year ago | (#42466459)

It depends on what is causing the low inflation.

In America, right now, we have a huge overhang in housing, bad debt, and underemployed people. Because of low prices these things have been pulled from the market – but when prices go up these things pop back on the market driving prices back down. So, if you are trying to sell your house or your labor (or even trying to get a raise) it’s tough.

Japan has been struggling with this for a better part of a decade now. The Fed, via QE, has been dumping massive amounts of currency (which is not the same thing as money) into the market should be causing inflation – but the overhang is absorbing it all.

While low inflation is a good thing today it indicating a anemic economy that is below it’s capacity.

Re:Copper prices (1)

LordLimecat (1103839) | about a year ago | (#42465829)

I dont know of anyone who pretends inflation doesnt exist.

Re:Copper prices (2)

gstoddart (321705) | about a year ago | (#42465923)

Well, since most pay raises many of us have seen over the last few years are below inflation, lots of employers are pretending it doesn't exist for their staff.

Re:Copper prices (5, Informative)

Anonymous Coward | about a year ago | (#42465831)

There hasn't been any significant copper in a canadian penny since 1996.

94% steel, 1.5% nickel, 4.5% copper (as plating)

A big problem is that the penny is just useless. Nobody uses them, except maybe a handful of annoying old grannies who take 25 minutes to buy a cup of coffee.

So, they just get tossed into coin jars. Since they disappear from circulation almost immediately, and the government is (was) minting increasing amounts to make up for this. They don't get used either, just tossed into coin jars.

Those old copper pennies, from pre 1996, are worth ~2 cents, but the value of copper fluctuates pretty wildly.

The fact that there is such a thing as inflation is no shock to anybody, and not really a part of this story.

Re:Copper prices (0)

Anonymous Coward | about a year ago | (#42466423)

BUT I HAVE A COUPON!!

Re:Copper prices (0)

Anonymous Coward | about a year ago | (#42465945)

Nothing IS wrong. This is simple supply and demand - the demand for copper has gone up like crazy, so it costs more now, which makes it cost prohibitive to produce pennies.

Go take your ridiculous ranting back to freep.

US military did this (4, Informative)

YrWrstNtmr (564987) | about a year ago | (#42465749)

Late 80's, on european bases. Round up or down to the nearest 5 cent increment. Worked like a charm. The only place pennies were taken was the Post Office.

It's about time (5, Insightful)

Magorak (85788) | about a year ago | (#42465751)

I have wondered for years how long it would take us Canadians to finally get rid of that awful piece of currency. Especially given that it takes more money to produce it than it is actually worth. No one can buy anything with pennies anymore and they really are nothing more than just metal wasting space. Plus, vending machines have never taken them which has made them even more useless than before.

Actually we stopped making them in 2012 (5, Informative)

JonMartin (123209) | about a year ago | (#42465773)

The Mint stopped making new pennies last May (http://www.cbc.ca/news/canada/manitoba/story/2012/05/04/mb-canada-last-penny-mint.html). But they are still in circulation. What happens on February 4th is the Mint stops putting pennies it gets back into circulation. What is unclear is when exactly stores will be required to stop giving pennies out.

Re:Actually we stopped making them in 2012 (5, Informative)

kinadian (136810) | about a year ago | (#42466105)

Actually, it's not unclear. Right in the Mint's website (linked to in the article): "Moreover, pennies can still be used in cash transactions indefinitely with businesses that choose to accept them."

The penny will remain legal tender for as the foreseeable future. As you stated, the only thing happening now is that the mint will no longer be distributing pennies after February 4th, 2013.

It's not mentioned on the website, but I have also heard that if you bring your pennies to the bank on or after Feb 4, they will be collected and returned to the mint where they will be destroyed.

Re:Actually we stopped making them in 2012 (0)

Anonymous Coward | about a year ago | (#42466165)

They will be "required" to do so as soon as it is impossible for them to get pennies to hand out...

Re:Actually we stopped making them in 2012 (1)

T.E.D. (34228) | about a year ago | (#42466375)

It doesn't have to be a requirement. At some point they will be scarce enough that it will just be eaiser not to use them.

Bad move. (0)

Lisias (447563) | about a year ago | (#42465779)

The potential loss for the society (caused by the rounding) is far more expensive that the cost of producing the pennies.

Large stores will get a non taxable "profit" from raising to the nearest nickel, small ones probably will get some loss from raising to the lowest nickel. This kind of white "washing cash" is common here at Brazil, as the people is already used to this rounding (to up) thing - stores commonly doesn't have the change.

It would be a wiser move simply eradicate the penny from current currency. This will leverage the problem to everybody, and the taxes would not be evaded.

Re:Bad move. (0)

Anonymous Coward | about a year ago | (#42465863)

No they don't. The book-keeping is still done to the nearest penny, the actual bill is too the nearest penny, the taxes are still paid to the nearest penny. The only difference is that your physical change, if you pay by cash, is rounded to the nearest nickel.

Re:Bad move. (4, Informative)

YrWrstNtmr (564987) | about a year ago | (#42465929)

Large stores will get a non taxable "profit" from raising to the nearest nickel, small ones probably will get some loss from raising to the lowest nickel.

How so? The entire transaction is rounded up or down, to the nearest nickel. If you buy more than one item, that screws the 1 or 2 cent price fixing scheme.

Re:Bad move. (2, Interesting)

Anonymous Coward | about a year ago | (#42465959)

while it is entirely conceivable (and probable to occur) to rig prices to always cause a round-up, even with taxes... that really only applies for single item purchases where the final price can be exactly determined.. and then it's only for the cash transactions. overall, that combination of a single item and cash sale is probably pretty small. multiple item purchases will balance out, as their totals and whether they will round up or down can't reliably be determined ahead of time. and of course, non-cash transactions are unaffected.

and there really isn't a point to rounding the prices on the shelf... except at places that actually manually key each price on the register (no automated scanner or simple item/sku to key in). all but the very smallest retail stores have bar code scanners. and consider that prices rounded to the nickel, when taxes are added.. probably won't end up ending in a 5 either.

if a store really wanted to reduce the small change handling of cash transactions.. AND they primarily sold non-taxed goods, they'd be better off with 10c increments up to $2-3 prices then 25c increments after (then 50c over $10 and a dollar for over $20). but how many stores do a high percentage of untaxed, cash sales?

Re:Bad move. (0)

Anonymous Coward | about a year ago | (#42466035)

The gain by society is not small, either.

This means the death of the "marketing 9". You know, those extra 9's that might as well be 0's with the most significant figure rounded up? Yeah, no more 9.99 anything. It's either 10 or 9.95. And that 5 isn't so special that it looks like it's doing anything for you but hanging out with a bunch of those cool 9's.

Marketers are going to have to do better than just dropping a penny off of a price to make it sound like it costs less. And a whole nickel makes it 5 times the price reduction, which isn't good for their performance reviews.

I, for one, welcome our penniless overlords. (Well, not mine, but Canada's. I live in the U.S.A., where we all have just a few pennies left to our names.)

Re:Bad move. (1)

ZombieBraintrust (1685608) | about a year ago | (#42466207)

Does the law cover that? If not then marketers can still sell things for 9.99. If you buy 5 items at 9.99 then the total comes to 49.95. You buy 4 items and then buy 1 item later you bill comes to 50.00.

Re:Bad move. (1)

91degrees (207121) | about a year ago | (#42466259)

The 1 cent (and 2 cent) has been abolished in quite a few countries with a currency value comparable to the dollar. They still price items at $x.99, and will round down if you buy enough that it ends up as $x.x6 or $x.x7

Re:Bad move. (1)

kinadian (136810) | about a year ago | (#42466367)

I honestly don't think it's that big of a deal. Remember, you've got a minimum of 5% tax on most items as well. Here in Ontario, it's 13%. Depending on the pricing, that could affect the rounding, especially when you have multiple items. And it's a maximum difference of $0.02 on the entire transaction.

In addition, it's only for cash transactions. Most of the people I know (myself included) use some form of digital transactions (debit/credit) to pay for things. There are very few locations in Canada that only accept cash.

Re:Bad move. (1)

kwerle (39371) | about a year ago | (#42466073)

I don't get it. I sell things. You sell things. Everyone rounds to nickels unless the transaction isn't using hard currency. Who is losing money?

Re:Bad move. (1)

Lisias (447563) | about a year ago | (#42466405)

I don't get it. I sell things. You sell things. Everyone rounds to nickels unless the transaction isn't using hard currency. Who is losing money?

You sell something for [insert-your-favorite-currnecy-here]1.996. Customer pays 2.00, you can't give 0.004 back. Customer decides it's ok.

Now repeat it a thousand times per day.

This is 0.004 * 1000 * 30 * 12 = 1440.00 per year.

Since you declared in the invoice 1.996, you pay the tax for 1.996. That 1440.00/year incoming is not taxed, and when correctly masked by a good accountant, it's plain, untaxable profit.

Gogo Finland (0)

Anonymous Coward | about a year ago | (#42465785)

Took you long enough.

We haven't had 1 or 2 cent coins in Finland since shortly after we got the Euro.

Meanwhile, in the USA, Gasoline at 9/10s (2)

retroworks (652802) | about a year ago | (#42465855)

We still have 9 tenths of a cent per gallon on USA gasoline sales. Maybe we can look forward to rounding it to a penny.

Re:Meanwhile, in the USA, Gasoline at 9/10s (2)

CastrTroy (595695) | about a year ago | (#42465965)

Nope, up here in Canada, gas is still sold in cents/litre. But when they get rid of the penny, they'll round the total. Watch as millions of Canadians pump just the right amount of gas into their tank so that the price is always rounded down.

Re:Meanwhile, in the USA, Gasoline at 9/10s (4, Interesting)

dskoll (99328) | about a year ago | (#42466243)

I can't remember the last time I paid cash for gas in Canada. In fact, I think the only time in my life I paid cash for gasoline was in Florida when the pump wouldn't accept my Canadian credit card. I had to go in, give $50, buy my gas, and then go in again to get my change.

Re:Meanwhile, in the USA, Gasoline at 9/10s (0)

Anonymous Coward | about a year ago | (#42466305)

That's unlikely since you'll likely be paying by credit/debit which will be unaffected.

Re:Meanwhile, in the USA, Gasoline at 9/10s (1)

ls671 (1122017) | about a year ago | (#42466047)

We still have 9 tenths of a cent per gallon on USA gasoline sales. Maybe we can look forward to rounding it to a penny.

In Canada, they still have variable tenths of a cent per liter, !

http://www.ontariogasprices.com/ [ontariogasprices.com]

Re:Meanwhile, in the USA, Gasoline at 9/10s (1)

Anonymous Coward | about a year ago | (#42466061)

It's the same in Canada, it's not 129 cents per litre. The majority of the time it is 129.9 cents per litre.

LOL, keep the penny, move the decimal point. (1)

elkto (558121) | about a year ago | (#42465857)

I get it the currency has lost value, just move the decimal point.

Re:LOL, keep the penny, move the decimal point. (0)

Anonymous Coward | about a year ago | (#42465949)

Your punctuation is atrocious.

Re:LOL, keep the penny, move the decimal point. (0)

Anonymous Coward | about a year ago | (#42466329)

Wow; grammar troll, ftw.

Re:LOL, keep the penny, move the decimal point. (1)

Baldrake (776287) | about a year ago | (#42466245)

I get it the currency has lost value, just move the decimal point.

That's actually not so dumb. France did this in 1970 [wikipedia.org] , except they moved two decimal points.

Re:LOL, keep the penny, move the decimal point. (1)

swb (14022) | about a year ago | (#42466447)

The problem with that idea isn't that it doesn't make sense, but that it would have a negative psychological appeal. Everyone who isn't a 10+ millionaire would suddenly stop being a millionaire. Million dollar houses wouldn't be.

And who wants to work for $10,000 per year? Or work for 75 cents an hour on minimum wage?

I got a plan! (0)

Anonymous Coward | about a year ago | (#42465933)

Maybe the United States can have tourists smuggle out Canadian pennies and we can just accept them as legal tender here.

Re:I got a plan! (1)

eliphalet (1222732) | about a year ago | (#42466025)

At current exchange rates, an American penny costs less than 0.99 Canadian cents.

Re:I got a plan! (0)

Anonymous Coward | about a year ago | (#42466349)

Perfect, we accept them as the equivalent of 1 cent American pennies and save a ton on production costs. Of course there's the problem of adding money without anything to back it up into the system.

Read that as "penises" (0)

Anonymous Coward | about a year ago | (#42465973)

I read that as "penises" and was worried where I'd get fresh 'nuck cock.

U.S. too? (1)

DarthBling (1733038) | about a year ago | (#42466049)

According to this link [goldsilver.com] , the U.S. is going to stop producing pennies and nickels in 2013.

Though I'm not sure how much faith one can put into this article. I've tried looking for more concrete news about this, but I have yet to turn up anything. Anybody else hear about this?

Re:U.S. too? (1)

dkleinsc (563838) | about a year ago | (#42466307)

Though I'm not sure how much faith one can put into this article.

I would have approximately no faith in that article, because the way that the company who wrote it makes its money is by convincing people to buy precious metals, which means it's in their financial interest to spread stories that create a potentially false impression that US currency is worthless.

It's all about zinc (5, Interesting)

Animats (122034) | about a year ago | (#42466051)

The US has pennies only because of lobbying from the zinc industry. [pennies.org] The U.S. Mint pays $0.011 [pennies.org] for a penny blank.

Re:It's all about zinc (0)

Anonymous Coward | about a year ago | (#42466337)

Yeah, this group seems like they're some serious hard hitters. The AARP and NRA ain't got nothing on them. Even that default Joomla tab icon screams that this is a lobby group that you just don't want to cross.

They should have dropped nickels as well (0)

Anonymous Coward | about a year ago | (#42466081)

Nickels also cost more than their face value to produce iirc.
And it just makes sense to have the smallest denomination, the dime, be the smallest coin physically.

Ah inflation (1)

hsmith (818216) | about a year ago | (#42466255)

Making savings absolutely worthless for hundreds of years. The fact pennies are disappearing should cause concern - your money is worthless.

aw,3some fp (-1)

Anonymous Coward | about a year ago | (#42466261)

Rounding Messes Up Accounting (1)

PastTense (150947) | about a year ago | (#42466277)

Right now a cashier takes his/her cash box to accounting which verifies the amount of money in the cash box is identical to the cash register tape. This will mess this up (although the newer machines with programming may be able to be re-programmed to calculate this correctly--anyone know?)

Wish the US would do this (3, Insightful)

OzPeter (195038) | about a year ago | (#42466347)

I hate pennies .. they are evil and need to be banished from the earth. But Americans would scream blue murder if the gubmint tried to take their precious away.

But the funny/bizarre thing is that the US public has already been conditioned to rounding the bill through the use of the give/take-a-penny trays in innumerable stores across the country.

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