Friday, September 19, 2014

Most expect retailers to accept pennies

MONTREAL—Canadians aren’t expecting to save all of their pennies and nearly three-quarters want retailers to keep accepting the coin even though it’s being phased out, says a new survey.
The Bank of Montreal poll found that 73 percent of those surveyed expect retailers to keep taking pennies—regardless of the circumstance or amount of their purchase.

And 59 percent say small businesses should adjust their prices to benefit the consumer.
“Business owners are completely aware that they don’t want to inconvenience customers; they want to maintain their relationships,” BMO’s Joe Collura said yesterday.
He added the businesses that are “going to win the day” will be the ones who pass along the cost-saving and convenience to their customers.
Retailers who decide to no longer accept pennies as part of cash payments will have to round up or down consumer purchases to the nearest five cents.
However, electronic transactions, such as those on debit cards or credit cards, still would be registered in cents.
The BMO survey also found that 66 percent of those polled currently pay for their daily purchases with a debit or credit card.
“A lot of business owners understand that folks are moving away from having to pull that penny out of their pocket, so to speak,” noted Collura, a small business area manager with BMO in Toronto.
“There is a large portion of Canadians that actually turn to cashless options as a way to purchase.”
Consumers also seem to think that paying with less loose change will make the process go faster, with 67 percent of those surveyed say they believe speed of service will increase without the penny.
The Royal Canadian Mint started collecting one-cent coins earlier this month for melting and recycling of the metal content, with some six billion pennies expected to be surrendered by Canadians over the next six years.
While the Mint officially ended its distribution of one-cent coins to Canada’s financial institutions, businesses still can accept the pieces as long as they choose.
Collura said eliminating the penny will be done in a “customer-friendly way” and the coins will go out of circulation as businesses take them to the bank.
“We’re just going to see a different way of doing business as we move forward,” he added.

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