Shoppers at Tucson Fry’s stores are being asked to provide exact change when paying cash.
That’s because Kroger, Fry’s parent company, is citing next year’s expected halt in the production of pennies for a scarcity that it says is happening now.
 
        The upcoming end to the production of pennies has some retailers scrambling to avert a shortage by asking customers to pay in exact change.
It not a mandate, but one Fry’s store on Tucson’s east side has posted a sign that asks cash-paying customers to “consider providing exact change.†When that’s not possible, the store and others in the chain are rounding up coins given as change. That means someone owed one to four cents in change would instead get a nickel.
Unlike some states, Arizona does not have laws that prohibit the practice of rounding change. A group of food and merchant advocates is urging the U.S. Senate to allow that to happen in states where that’s currently illegal.
“Our associations represent Main Street businesses that serve and employ millions of Americans across the nation,†the group wrote in a recent letter. “These businesses — large and small — must be able to continue their commitment to our communities in ways that are fair to everyone and avoid unintended operational hurdles that are being caused by the rapid loss of the U.S. penny.â€
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The group is advocating a national law that allows businesses to round transactions to the nearest nickel.
Pricing changes won’t solve the problem, they say, because added “state and local taxes impact the prices of many products which cause final sales prices to vary in a way that makes it impossible to avoid the need for rounding.â€
The National Association of Convenience Stores and the National Grocers Association are also asking for national legislation.
“It won’t spare cashiers the embarrassment while explaining to customers that they can’t make exact change,†the groups wrote, “or prevent them from disappointing young clients who wanted an increasingly rare penny for the one-cent gum machine.â€
 
        Fry’s parent company, Kroger, is citing a penny shortage in instituting a company policy of rounding change of pennies up to a nickel.
Pennies haven’t disappeared, according to the American Bankers Association, estimating that there are 250 billion pennies in circulation.
“It’s not a shortage in the traditional sense – there are plenty of pennies out there,†the group says. “Many people stash pennies in jars or drawers and without new ones being minted, banks and retailers are relying solely on recycled coins.â€
ABA notes that countries like Australia and Canada round cash after phasing out their lowest-denomination coins.
Pennies are still legal currency and can be used for purchases or bank deposits.
“The banking industry encourages consumers to recirculate coins — check your home, car or coin jars and bring them to banks, retailers or coin kiosks to help ease the slowdown.â€


 
                                     
                 
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