Are Pennies in Canada Still Accepted as Legal Tender?

Discover the status of pennies as legal tender in Canada and how businesses are adapting to changes in cash transactions.

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Pennies are no longer minted in Canada but remain legal tender. Businesses can still accept them, though it's common to round cash transactions to the nearest five cents. For non-cash transactions, exact amounts are typically used.

FAQs & Answers

  1. What happens if a business refuses to accept pennies? A business can choose to refuse pennies, but they must still legally accept them if they do accept cash transactions.
  2. Why were pennies discontinued in Canada? Pennies were discontinued due to the cost of production exceeding their face value and the efficiency of rounding transactions.
  3. How do Canadian businesses handle cash transactions now? Businesses often round cash transactions to the nearest five cents to simplify the process since pennies are no longer minted.
  4. Are there any alternatives to cash transactions in Canada? Yes, many Canadians use debit and credit cards, as well as digital payment apps, for their transactions.

Watch More

For further insights on currency in Canada, check out our videos on the Canadian dollar and the impact of digital payments on traditional cash transactions.

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