Penny Phaseout

What Consumers & Businesses Need to Know
By Lori Tucker, United Bank's Chief Experience Officer
 
You've likely heard by now that the US Department of Treasury has produced their final penny.  The good news is, here in the South, we seem to have an ample supply of pennies currently.  So there's no need to worry, but let's prepare.  
 
FUN FACTS - use these in your next trivia game!
 
I listened in on a presentation led by an American Banker's Association (ABA) leader and learned these fun facts:
 
  • Only 16% of US retail transactions are paid for with cash.
  • Forty-nine percent (49%) of cash transactions are for $10 or less.
  • Only an estimated 80% of consumers spend their loose coin.  
  • There is an estimated 250 billion pennies in circulation.  They just all seem to be in our jars, piggy banks and beneath the sofa cushions in our homes.
Recently, the Federal Reserve began closing coin terminals that fall below inventory thresholds. These closures make it harder for banks to access or deposit pennies, compounding the circulation issue.  That's why you're beginning to see large retailers post signs about the coin shortage.  I've noticed two such signs as I've shopped recently, encouraging me to use exact change or a card.
 
ROUNDING METHODOLOGY
 
When exact change cannot be given in a retail transaction, we expect our nation to adopt a rounding methodology to the nearest nickel.  That's how other countries have managed a coin shortage - some transactions are rounded up, and some are rounded down.
 
The easiest solution?  Use a digital method of payment, such as a credit card or a debit card.  Load your United Bank card to your mobile wallet for the highest level of security.  If your card is loaded into your smartphone, then no one else can load your card into theirs.  And ALWAYS use either biometrics or a passcode to lock your phone in case it's stolen or lost.
 
(Please don't write checks - that's another issue entirely.  Read more.)
 
FOR OUR BUSINESS CUSTOMERS
 
We'll provide rolled pennies to you as long as we can.  At some point, we may have to limit the number of rolls we can sell to you at a time, just to make sure everyone gets their fair share.
 
Are you accepting cards for payment at your business?  If not, our Business Services team can help you start.
 
If/when our penny supplies do diminish, you'll need to adopt a rounding methodology for cash transactions where your customer doesn't have exact change.  If our nation doesn't adopt a standard rounding methodology, you'll need to develop your company policy and train employees on how to handle.  Perhaps your payment software will provide a rounding conversion systematically.
 
WILL UNITED BANK ACCEPT YOUR PENNIES?  ABSOLUTELY!
 
Pennies are legal tender, and still hold their value.  As an industry, we bankers are hoping that you'll start bringing in those buckets of coins and depositing them in your accounts or exchange them for paper currency.  That increases penny circulation and keeps things working as they currently are, for longer.
 
Most of our United Bank offices have self serve coin machines for customer exchange.  Non customers are currently charged a 10% fee for the exchange.*
 
We'll keep you posted as things develop.  We receive regular updates through our Federal Reserve partners and our banking associations. For now, send your kids on a hunt through the house for all your loose coin!  We'll welcome your coin deposits!
 
*United Bank lobbies that DO NOT have coin machines: Thomaston Northside office, Barnesville Ingles office