With US penny production halted, how local businesses handle change varies

In a historical strike ceremony hosted by the U.S. Mint to bid farewell to the penny, the $0.01 coin’s 232-year production run has officially come to an end.

But what that means for the Lakes Region — and for those with a piggy bank full of the copper-colored discs — remains to be seen. The penny still remains legal tender, yet some local businesses are adapting their policies in an effort to deal with the change in the coin’s availability.

At Franklin Savings Bank, employees are already having a hard time receiving change orders from the Federal Reserve. But luckily, their coin machines are helping abate the shortage.

“We have pretty good access to penny and coin supplies through our coin machines,” said Julie Wright, senior vice president of retail banking and branch administration officer for FSB. “That’s really helped us keep up with the penny supply.”

According to one of the bank's Facebook posts, there are coin machines in the Lakes Region in Bristol, Gilford, Tilton and Franklin. This means consumers who operate a cash-only lifestyle will still be able to leave with change in hand.

The Facebook post also stated, “While we are already having trouble obtaining penny supply through the Federal Reserve, we are making every effort to support our business and consumer customers with limited penny distribution for as long as we are able to do so. We will continue to accept pennies in all of our locations for deposit or exchange.”

“It was pretty quick after they announced the penny [discontinuation] we started to act quickly to reserve pennies,” Wright said. “We haven’t had to make any substantial changes to our policy.

"In the banking industry, we are always pushing to cashless transactions, because it's safer.”

Cash will always be king, but cashless transactions may be the way of the future, according to leadership at FSB.

Bank of New Hampshire is also in a strong position with its own penny reserves.

“We maintained a healthy supply of pennies when federal production ceased. At this time, the only change we’ve implemented is pausing bulk penny requests from individuals, such as coin collectors who purchase boxes of pennies to sort through,” wrote Alexandra Pelletier, senior vice president and retail banking administration officer, in an email.

Businesses who order coins through BNH should have nothing to worry about.

“We are continuing to supply pennies in bulk to our business customers for their daily operational needs, and customers who are withdrawing or cashing checks are not experiencing any changes. Our branches have ample inventory to support normal activity,” Pelletier wrote.

For those with a piggy bank full of change, BNH is happy to help.

“Regarding coin deposits, we are not only accepting them, we are encouraging customers to bring in their coins. Our currency management vendor is able to recirculate the coins we collect, which helps extend the availability of pennies for both consumers and businesses.”

Meredith Village Savings Bank is simply looking to support its customer base during a time of transition.

“In response to an expedited timeline for these changes, our focus has been on helping our customers — especially our local businesses — navigate the transition with confidence. We understand that adjusting daily practices takes time, and our team is working closely with business owners and industry partners to stay informed, answer questions, and serve as a resource,” said Stacy Trites, senior vice president and retail banking officer at MVSB. “By managing demand thoughtfully, providing updates as we have them, and staying connected with our community, we’re ensuring that everyone has the support they need to adapt successfully.”

Lots of problems with the halting of penny production are on the backend, the side consumers don’t often see.

“The biggest challenge is that many of the payment vendors businesses rely on for processing transactions and accounting haven’t had sufficient time to implement automated rounding functions,” Trites said. “As a result, some businesses may need to manually track adjustments until their systems are updated.”

Still, the change is going to have an impact, and BNH has some recommendations.

“While there are billions of pennies in circulation, most banks in the country can no longer order them. It’s likely that pennies may not be spent or redeemed quickly enough to meet day-to-day demand,” Trites said. “The best thing businesses can do right now is stay informed about public developments, maintain close communication with their bank and vendors, and have a rounding plan in place in case they’re unable to access enough pennies for regular operations.”

While Hannaford locations in southern New Hampshire have stopped accepting cash at their self-checkout stations, and many Dunkin’ locations are already rounding up, all Lakes Region locations of the popular supermarkets and fast food chains are still accepting cash and coins, as of Nov. 21.

Walmart, Cumberland Farms and Shaw’s are also all still accepting cash.

In Conway, businesses have begun to round up, including Stonewall Kitchen.

It became expensive to produce the penny, according to staff of the U.S. Mint, which increased $1.42, to $3.69 per penny. There are still 300 billion pennies in circulation in the United States.

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Katlyn Proctor can be reached at katlyn@laconiadailysun.com or by calling 603-524-0150.