Citing a nationwide shortage of pennies, some stores have started rounding purchases up — or down — to the nearest nickel.
Other stores, including military shops, acknowledge that at some point they’re going to run out of pennies and have made plans to address it. For now, military customers may want to empty those piggy banks before heading out to pay cash for holiday shopping.
Beginning Jan. 1 — or sooner if penny supplies run out — cashiers at Army and Air Force Exchange Service stores will round cash purchases up or down to the nearest nickel or dime, according to AAFES spokeswoman Julie Mitchell.
Navy Exchanges will also begin rounding up or down when their registers are out of pennies, according to Navy Exchange Service Command spokeswoman Kristine Sturkie.
The moves come on the heels of penny production being stopped after 232 years. The United States Mint struck its final penny on Nov. 12.
In February, President Donald Trump ordered the U.S. Mint to stop producing pennies, citing cost savings. Over the past decade, the cost of producing each 1-cent coin has risen from 1.42 cents to 3.69 cents, according to the U.S. Mint. Fewer people are using cash for purchases, and some have advocated for the retirement of the 1-cent coin for years.
With that change, banks are no longer able to order the coin, and merchants in multiple regions of the country have run out, according to the Associated Press.
The penny is still legal tender, meanwhile, and there are an estimated 300 billion of them in circulation, far exceeding the amount needed for commerce, according to the U.S. Mint.
Here’s what to expect:
This change will not impact overseas military exchanges, where cashiers have already been rounding up or down for cash purchases for years. AAFES stores overseas have been rounding since 1980.
AAFES: If the last digit of the purchase is 3, 4, 6 or 7, the purchase will be rounded to the nearest nickel. If the last digit of the total purchase ends in 1, 2, 8 or 9, the total purchase will be rounded to the nearest dime, according to AAFES’ Mitchell.
Navy Exchanges: If the change due ends in 1, 2, 6 or 7, it will be rounded down to the nearest 5 cents. If the change ends in 3, 4, 8 or 9, it will be rounded up.
These rounding policies only apply to cash transactions and don’t affect credit, debit or gift card purchases. Those customers still pay the exact price.
Karen has covered military families, quality of life and consumer issues for Military Times for more than 30 years, and is co-author of a chapter on media coverage of military families in the book “A Battle Plan for Supporting Military Families.” She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga.
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