Beginning February 4, 2013 the Canadian Mint will stop distributing
pennies. Vendors who accept payment in cash will be forced to round
transactions to five cent increments in order to allow for exact payment to be
made without the use of the penny. While this change will make all of our
wallets a little lighter, it will have some interesting implications.
The government has released rounding guidelines that
indicate allowable rounding procedures for the Canadian government to perform
for transactions with the public. Most likely, businesses will follow this
method too.
For transactions that would result in .01 or .02 cents, the
total amount will be rounded down to .00. Amounts due ending in .06 or .07 cents
will be rounded down to the .05. For amounts ending in .03 or .04, the total
will be rounded up to .05. And for transactions resulting in .08 or .09 the
balance will be increased to .10.
An example of this would be a payment due for $23.43. The
revised total would be $23.45. And for a payment due of $23.41, the total will
be reduced to $23.40.
Payments made by cheque, wire or credit card will still
allow other cent increments to be included because there is no cash element in
the exchange.
It will be interesting to see how this change will play out
in businesses that except multiple forms of payment. For instance, if a man
makes a purchase at the convenience store that results in $58.77, the vendor
will need to find out the method of payment before accepting it because if the
customer pays on credit card, it is acceptable, but if the customer pays in
cash then the total will be rounded down to $58.75.
This may prove to become a hassle for shoppers when the individual
in front of them in line wants to pay cash, then does not have enough and so
the cashier must change the total balance owing in order for the client to make
the payment by credit card.
It is possible that store owners will alter the pricing of
their goods so that the final price including GST/HST will be an amount ending
in .00 or .05 for all goods and/or services.
Businesses will need to be proactive and very shortly
address how they will adapt their pricing to accommodate this change.
So as we say goodbye to 2012, it is also time to say goodbye
to the once-loved penny.
It will be interesting to see how this change will play out in businesses that except multiple forms of payment. For instance, if a man makes a purchase at the convenience store that results in $58.77. Especialistas Contadores Publicos
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