Are you ready for the February 4th Phase out?
Important information for retailers from the association that speaks ONLY for retail business in Canada
Effective February 4th the penny will be gradually phased out of circulation in Canada. RCC understands the impact this change will have on your business and has collected resources for use in store.
At the request of Retail Council of Canada the Government of Canada has produced notices that can be posted at point of sale to educate consumers about the phase out. Click here for the resource homepage.
RCC has produced a FAQ document, based on member questions, that you can use in your store to answer your staff or consumer questions.
Get the facts.
The government has released rounding guidelines that you can implement in your business.
Address the following two factors with your staff:
Only cash transactions where exact change is not available require rounding. Cheques and transactions using electronic payments—debit, credit and payments cards—do not need to be rounded, because they can be settled electronically to the exact amount. For any cash payment, only the final amount (or equivalently, the change owed) should be subject to rounding. Individual items, as well as any duties, fees or taxes, should be tabulated in their exact amount prior to rounding, as illustrated:
Source: Department of Finance Canada
This is a decision that all business owners and operators will need to make based on their unique needs. However, The Government of Canada is adopting a rounding guideline that has been used successfully by other countries for cash transactions with the public. Under this guideline, when pennies are not available, cash transactions are rounded in a fair and transparent manner, as illustrated below:
Source: Department of Finance
You can also view a text version of the government rounding rules here.
RCC has reached out to its members to ask about their plans for the February 4th implementation.
Still have questions?
FAQs from the Government of Canada:
RCC is the voice of retail for the phase out of the penny.