Why not instead of replacing the penny reintroduce it as a 2 cent or 3 cent piece?

Question

To those who may not have heard there is discussion about totally eliminating the penny so your change would a couple cents off instead of 1 cent off in most occasions. Im hoping they don't eliminate the penny.

Answer 1

The penny isn't essential - but if the U.S. is going to keep a coin under a nickel, leave it at 1 cent (it's easier to use).

Instead of a 2- or 3-cent piece, why not go to the nickel? Either a 2-or 3-cent piece would make making change a little more difficult - for example, paying a $0.97 item (assuming most people don't carry 50-cent pieces):

With a 2-cent piece: 3 quarters, 2 dimes, and 1 2-cent piece
(or if you give a dollar to the cashier, s/he cannot give you exact change back - either 1 2-cent piece ($0.02) or 2 2-cent pieces ($0.04), but not your exact change of $0.03.)

With a 3-cent piece: 3 quarters, 1 dime, and 4 3-cent pieces. Change would be easier in this instance if you gave the cashier a dollar, but how would the cashier pay you if s/he the cost was now $0.98 and you paid a dollar?

It's not intuitive and I would believe that people don't want to be inconvenienced at the checkout line trying to calculate what to give (or receive from) the cashier.

I work in a foreign country overseas on a U.S. military installation where the penny is not used (except for the post office as far as I can tell). Everything is rounded up or down to the nearest 5-cent increment - for example:
Cost: $0.95 Pay: $0.95
Cost: $0.96 Pay: $0.95
Cost: $0.97 Pay: $0.95
Cost: $0.98 Pay: $1.00
Cost: $0.99 Pay: $1.00
Cost: $1.00 Pay: $1.00

Works fine and have not heard of any complaints - it's just the way things are. Good question.

Answer 2

The British empire uses the penny. The U.S. uses the cent. The reason the cent is eliminated is in micro transactions will be hit hard. This includes mass mailers, sub "penny" stocks and "penny" stocks. Also banks keep the split cents from interest and the government keeps the split cents from things like sales tax. Anything that uses percents in transactions would allow them to take more of your money.

Answer 3

Have we given up on 1% after all it is such a small thing until you consider that 1% of a million dollars is $10,000.00

I want every single penny I am due and trust me when the calculate the money you pay in interest that 8.759% they charge is no accident .
Charging people a portion of 1% may seem silly to you but it amounts to millions everyday and who do you think is going to get that penny you want to give up so easily .

Answer 4

Good question. I like it. We should also replace 1 dollar bills with coins. Paper money costs so much to create, and it doesn't last. It wears within a year, maybe less, and we have to spend millions of dollars to replace them. Coins last for a very long time and would be a smart way to go.

Answer 5

it cost more to produce each penny than its worth, get rid of those useless coins

Answer 6

how would you give me change from something that is .99 cents and I give you a dollar

Answer 7

nuh uh...i only hav 2 pennies i can spare

Answer 8

Cashiers have it tough already.