The government’s phasing out of the penny has been “a bit chaotic,” said Mark Weller, executive director of Americans for Common Cents. The pro-penny group is funded primarily by Artazn, the company that provides the blanks used to make pennies. “By the time we reach Christmas, the problems will be more pronounced with retailers not having pennies.”

Weller said other countries that removed low-denomination coins, like Canada, Australia and Switzerland, had guidance for afterwards. Not so in the United States.

“We had a social media post (by Trump) during Super Bowl Sunday, but no real plan for what retailers would have to do,” he said, referring to the president’s February announcement.

Different rounding plans

Kwik Trip, a family-owned convenience store chain that operates in the Midwest, decided to round down cash purchases in stores where it hasn’t been able to find pennies.

“There’s no way that we wanted to charge (customers) an extra 2 cents because we just didn’t think that was fair,” said John McHugh, spokesperson for the company. “I mean, it’s not their fault that there there’s a penny shortage.”

But with 20 million customers a year, and 17% of them paying with cash, the policy will eventually cost Kwik Trip a couple of million dollars a year, McHugh said.

It’s not just businesses that face increased costs. Rounding to the closest nickel will cost consumers about $6 million a year, according to a July study by the Federal Reserve Bank of Richmond. That is fairly modest, coming to about five cents each across 133 million American households.

And rounding is not a national solution.

Four states – Delaware, Connecticut, Michigan and Oregon – as well as numerous cities, including New York, Philadelphia, Miami and Washington, DC, require merchants to provide exact change, according to the National Association of Convenience Stores (NACS).

In addition, the law covering the federal food assistance program known as SNAP requires that recipients not be charged more than other customers. Since SNAP recipients use a debit card that’s charged the precise amount, if merchants round down prices for cash purchases, they could be opening themselves to legal problems and fines, said Jeff Lenard, spokesperson for NACS.

“Rounding down on all transactions presents several challenges beyond the loss of an average of 2 cents per transaction,” Lenard said. “We desperately need legislation that allows rounding so retailers can make change for these customers.”

For that reason, NACS and other retail groups recently wrote to Congress asking for legislation to deal with the questions raised by the end of penny production.

End of a ‘wonderful life’

The penny was one of the nation’s first coins, first minted in 1787, six years before the Mint itself was established.

Benjamin Franklin is widely credited with designing the first penny known as the Fugio cent. Its current form arrived in 1909 on the centennial of Abraham Lincoln’s birth, when it became the first American coin to feature a president.

But it has declined in both use and popularity ever since. The Treasury Department now says there are an estimated 300 billion pennies in circulation. That comes to a bit less than $9 for every American. But most of those coins are “severely underutilized.” So, outcry from the public over its demise has been muted.

Joe Ditler, a 74-year-old writer and historian from Colorado, said he still has an old cigar box filled with mostly pennies given to him by his grandfather. He remembers flattening pennies on railroad tracks or souvenir machines in amusement parks.

However, he only occasionally uses pennies to make a cash purchase. And he often tosses the one-cent coin in the tip jar.

“They bring back memories that have stayed with me all my life,” he said. “The penny has had a wonderful life. But it’s probably time for it to go away.”