The humble penny, a staple of cash transactions for decades, is slowly but surely fading into obsolescence. With the rising cost of minting and a general decline in its use, many countries, including our northern neighbor Canada, have already phased out the penny from their currency circulation. This presents a unique challenge for cannabis retailers who still rely on cash transactions, especially given the precise pricing often involved with regulated products.
The End of an Era: Why the Penny is Disappearing
Think about it: when was the last time you actively sought out pennies for a purchase? For most, they’ve become a nuisance – jingling in pockets, cluttering coin jars, and slowing down checkout lines. The cost of producing a penny often exceeds its face value, making it an inefficient use of resources. As consumers increasingly embrace digital payments, the need for the penny diminishes further.
By early 2026, the U.S. Mint is expected to run out of “penny blanks” (the raw metal discs used to make coins), marking the official end of penny production after the Treasury Department placed its final order in May. This announcement has already caused penny shortages at banks, grocery stores, and fast food chains, prompting many of them to start rounding to the nearest nickel. As the shortage continues to grow, cannabis retailers need to be prepared for this transition with the rest of the retail industry.
The Canadian Precedent: Learning from Our Neighbors
Canada officially stopped distributing pennies in 2013, implementing a “rounding” system for cash transactions. When a transaction involved an amount ending in .01, .02, .06, or .07, it was rounded down to the nearest .05. Amounts ending in .03, .04, .08, or .09 were rounded up to the nearest .05. This system, while initially causing some confusion, ultimately streamlined cash transactions and proved to be a successful model for managing the transition away from the penny.
Seamless Nearest-Nickel Rounding for Cannabis Retailers
This is where BLAZE comes in, offering a proactive solution for cannabis retailers preparing for a penny-less future. Our robust point-of-sale (POS) system is designed to seamlessly handle nearest-nickel rounding for cash transactions, mirroring the successful model implemented in Canada.
How BLAZE’s Nearest-Nickel Rounding Works:
- Cash Transactions: For any cash transaction, BLAZE automatically applies nearest-nickel rounding. This means that if a subtotal is $10.92, it will be rounded down to $10.90 for the cash payment. If it’s $10.93, it will be rounded up to $10.95. This ensures fairness and efficiency for both the customer and the retailer. This also extends to cashless ATM transactions since customers receive the difference of their total in cash.
- Non-Cash Transactions Remain Exact: Crucially, BLAZE understands that not all transactions are created equal. For non-cash transactions (credit card, debit card, digital payments), the exact cent amount is always maintained. This ensures accurate financial reporting and customer satisfaction, as digital payments don’t require physical coin handling.
- Compliance and Transparency: BLAZE’s rounding feature is built with compliance in mind. It provides clear reporting on all rounded transactions, allowing for easy reconciliation and auditing. This transparency is vital for regulated industries like cannabis.
Watch BLAZE Embers Episode 29 as we introduce the essential new Nearest Nickel Rounding feature designed for BLAZE Retail. This demonstration shows how to easily enable this setting and see exactly how it smoothly handles cash transactions—rounding both up and down—so your store is prepared to process payments efficiently and compliantly without relying on pennies.
Benefits for Your Dispensary:
- Streamlined Checkout: Faster transaction times mean happier customers and more efficient operations. No more fumbling for pennies!
- Reduced Cash Handling: Less time spent counting and managing small change.
- Future-Proofing Your Business: Stay ahead of the curve and be prepared for changes in currency circulation.
- Improved Customer Experience: Clear and consistent pricing for cash transactions.
- Enhanced Reporting: Accurate tracking of all transactions, rounded or exact.
Preparing Your Dispensary for a Penny-Free Future
While the official announcement for the U.S. penny’s retirement hasn’t been made, it’s a matter of “when,” not “if.” Proactive preparation is key to a smooth transition. Here’s how BLAZE empowers you to get ready:
- Educate Your Staff: Train your team on how the nearest-nickel rounding works and how to explain it to customers.
- Inform Your Customers: Clearly communicate your rounding policy through in-store signage and on your website.
- Leverage BLAZE’s Features: Ensure your BLAZE POS system is updated and configured to utilize the nearest-nickel rounding for cash transactions.
Don’t let the disappearance of the penny catch your cannabis dispensary off guard. With BLAZE’s intelligent nearest-nickel rounding feature, you can ensure your cash transactions remain seamless, compliant, and customer-friendly. Embrace the future of payments with confidence.
Ready to penny-proof your dispensary? Contact BLAZE today for a demo and discover how our cannabis POS system can optimize your operations.