Wisconsin Banks Adapt to New Penny Policies
Wisconsin businesses are adapting to significant changes in penny usage due to a penny shortage. Earlier this year, the U.S. Treasury Department suspended penny production, as the cost to mint a penny exceeds its face value.
Impact of the Penny Shortage on Businesses
The U.S. Mint reported that producing each penny costs nearly four cents. This economic reality has prompted businesses to reevaluate their cash handling practices. Many are now implementing rounding policies for cash transactions.
- Several establishments are rounding transactions to the nearest nickel.
- Signs informing customers of these changes are becoming increasingly common.
Local Responses from Financial Institutions
Financial institutions such as UW Credit Union are also adjusting to the decrease in penny transactions. Chris Frey, a representative from UW Credit Union, noted that they are ordering and processing fewer pennies each year.
“The vast majority of our younger members and our students are using digital methods,” Frey explained. As a result, the reliance on physical pennies is diminishing.
Adapting to Digital Payment Methods
The trend toward digital payments has compelled credit unions to innovate. Frey mentioned that they are developing new digital payment resources and collaborating with various vendors to enhance their systems.
Corporate Changes in Penny Policies
Major retailers are also modifying their policies regarding pennies. Kwik Trip, a convenience store chain, recently announced a policy that rounds cash transactions down to the nearest five cents. Similar adjustments have been made by McDonald’s, which is now rounding cash transactions to the nearest nickel for customers who do not provide exact change.
Kroger, which operates stores like Metro Market and Pick N’ Save, continues to accept pennies but has requested that customers use exact change or opt for digital payment methods.
Conclusion
As Wisconsin banks and businesses adapt to the new penny policies, the shift towards digital transactions appears to be a lasting trend. This change highlights the increasing importance of electronic payments in a cash-driven economy.
