Why Montana Stores Are Giving Nickels Instead of Pennies

If you’ve noticed more “exact change only” signs around Montana lately, you’re not alone. Some businesses are even starting to round change given to the nearest nickel, raising a big question: Are pennies quietly disappearing, and is it costing you more? 

While the United States Mint has stopped producing pennies amid rising costs, the coin hasn’t officially gone away. Pennies are still legal tender in the United States, and will be for the foreseeable future, according to the U.S. Treasury. However, that doesn’t mean they’re always easy to find. 

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The Treasury says that there are still 114 billion pennies still in circulation. Even with that many, there are coin shortages in some areas, including parts of Montana. As a result, some local businesses are asking customers to use exact change, while others are rounding cash transactions to the nearest five cents. 

That’s where things get interesting. 

In theory, rounding should balance out. Transactions ending in 1 or 2 cents should be rounded down, while those ending in 3 or 4 cents are rounded up. Over time, customers shouldn’t lose or gain money overall. 

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We haven't seen prices on menus or in stores change to round to the nearest nickel yet, but we are starting to see change given being rounded to the nearest nickel, or dime. 

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It’s also important to note that rounding typically only applies to cash purchases. If you’re paying with a card or mobile payment, it doesn't matter. Prices haven't changed, yet, just the change that is given. Will the traditional ‘penny tray’ at your local convenience store be replaced by a ‘nickel tray’ in the near future?

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For now, pennies are still part of everyday life, but as fewer circulate, Montanans may continue seeing small changes that add up in unexpected ways.