Canada is Getting Rid of the Penny

Mark Gordon BrownStarred Page By Mark Gordon Brown, 5th Feb 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/201fkye2/
Posted in Wikinut>Money>Shopping

As of February 4, 2013, stores and businesses in Canada are no longer giving out pennies out as change. They can still accept the penny, but must pass them on to the banks when they do, for which the stores are credited the proper amount. This is causing some confusion for shoppers and clerks.

Why is Canada Getting Rid of the Penny?

Pennies cost more to make than they are worth. As such the Canadian government announced in 2012 that the Royal Canadian Mint would not be making any more pennies and that they would eventually be removed from circulation.

Had people kept pennies in circulation more often perhaps it would not have come to this, but many people disregard them when they see them on the sidewalk, or have many pennies in cups and bowls at home that they simply forget to use. This forced the government to make more pennies all the time, costing the government a lot of money.

Canada is not the first country to get rid of the penny, Australia has been without the penny coin for years.

Shopping Without Pennies

When a customer buys something and the total amount ends in anything other than a 0 or a 5, and they are paying by cash, you can either pay with pennies to give the exact total, or the cashier must round the total either up or down and give change back according to that total. Totals ending in a 1 or 2 are rounded down, 3 and 4 are rounded up.

If the customer pays with a credit card or debit card they pay the exact amount.
If checks are accepted they are made out in the exact amount.

If a person has a check (such as their pay check) and goes to the bank to cash it, the bank will round it off to the nearest 0 or 5, but if the person deposits the check then they are given credit for the exact amount of the check.

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Tags

Buying, Canada, Cash, Coin, Coins, Credit Card, Discontinue, Get Rid, Interac, Money, Pennies, Penny, Shopping, Spending, Stop Making

Meet the author

author avatar Mark Gordon Brown
Raised in Michigan, I have a son who recently joined the Military. I am living in Canada with my wife where we have a hobby farm.

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Comments

author avatar Steve Kinsman
5th Feb 2013 (#)

I think America will soon follow suit. In the meantime, would you mind mailing me a couple of Canadian pennies?

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author avatar cnwriter..carolina
5th Feb 2013 (#)

oh well Mark...time marches on and pennies die by the wayside!!!

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author avatar Rania, Jamie & Reni
6th Feb 2013 (#)

Mark Gordon Brown, my husband and I bought an item the other day. I gave a nickle and asked where my penny was. The teller told us that they were required not to give the penny back or two pennies back if that was the change because of the "round out."

Now, can you imagine whilst the transition is in place, all the extra money the government will be collecting from the public for the most part?

I feel like I am being taxed again. Taxes in Canada are unconstitutional but like the rest of the system, we are lorded over by pure wicked ones whose main aim is to feather their own nests and pat one another on the back every time they fleece the people, to put it mildly.

Thank you for putting this on for all to readily inform themselves.

- Uthrania Seila Sentana-Ries

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author avatar Retired
6th Feb 2013 (#)

I thought I heard somewhere that the US was going to do that too....

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author avatar GV Rama Rao
6th Feb 2013 (#)

I think it is a sensible decision. With inflation the face value of the coin is less than the cost of making it. In India too some coins are being phased out. Several departments while calculating wages or making invoices after rounding off the totals to Rupees. In some cases you lose a bit while in some you gain. It evens up at the end.

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author avatar Delicia Powers
6th Feb 2013 (#)

thank you Mark...the Us will soon follow "penny"-less...

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author avatar Peter B. Giblett
6th Feb 2013 (#)

Ever since the Canadian government announced this measure, 6 to 8 months ago, I have been saying that this measure is inflationary. Cents matter very much and removing them will mean we pay more for the things we buy unless we pay by Interac and statistically this will hurt the lowest paid most.

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author avatar Rania, Jamie & Reni
8th Feb 2013 (#)

Dear friend, Peter B. Giblett, you are right on the mark with your most knowledgeable comment.

Uthrania Seila

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author avatar Sivaramakrishnan A
8th Feb 2013 (#)

The nostalgic will feel some pain - end of another era! siva

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author avatar Mark Gordon Brown
8th Feb 2013 (#)

In some cases you pay less. Like if the thing totals $8.77, you pay $8.75.

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author avatar Peter B. Giblett
8th Feb 2013 (#)

However it is the easiest thing in the world to program the computers to nudge up the price so we always round up, not down in the company's favour.

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author avatar Rania, Jamie & Reni
8th Feb 2013 (#)

Dear friend, Mark Gordon Brown, that is a good point also to note, but somehow I think the money lords will find a way to profit from this entire transition.

They are not known to "oblige" the people in much of anything without having a trick up their sleeves.

Look at this nuttiness: the British say that: their banks are needing help. Banks are given the authority to create money out of nothing.

Uthrania Seila

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author avatar Carol
10th Feb 2013 (#)

Great topic, I think we should also get rid of our penny, it's worth nothing now.

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author avatar Kingwell
12th Feb 2013 (#)

Hi Mark, I live in Canada too and I really don't mind seeing the penny go.Thanks for sharing.

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author avatar LOVERME
17th Feb 2013 (#)

with a penny
one can't even get a penny's worth
so why cry ???
be happy
reach for the sky
do away with dirt

we have computers now
for us to work

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author avatar Retired
4th Mar 2013 (#)

Fluctuations!

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author avatar Rose*
24th Nov 2013 (#)

It's kind of sad that things have gotten so expensive the smallest unit coins have no value.

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