GRAND LEDGE, Mich. — As penny production phases out, Grand Ledge businesses and residents adapt to changing payment methods with the U.S. Mint phasing out penny production, Grand Ledge businesses and residents are reflecting on their payment preferences and the growing shift toward digital transactions.
- As the U.S. Mint phases out penny production, Grand Ledge residents and businesses are weighing the impact and reflecting on shifting payment habits.
- Local shop owners say credit card processing fees—not the loss of the penny—are the bigger financial challenge, urging customers to consider cash for small purchases.
- Watch the video below to see how the change is affecting daily transactions and what some residents say about the future of physical money.
Credit card processing fees are cutting into local business profits, with some merchants encouraging customers to consider cash for small purchases, especially at community events.
Sue Spagnuolo has a collection of pennies at home but rarely puts them to use.
"Seeing how I have a bucket full, I don't really use them," she said.
For Warren Rowles, pennies still serve a special purpose in the community.
"Most of my pennies go to Sandy the horse at Meijers, so the kids can ride," he said.
WATCH VIDEO
At Pam's Pantry in Grand Ledge, owner Pam Redman keeps pennies in the register but focuses more on other coins for transactions.
"We're mostly with nickels and quarters," she said.
While the phasing out of physical pennies might not significantly impact local businesses, Redman notes that credit card processing fees are the real financial concern for small merchants.
"The going rate for credit card processing seems to be in the 3 percent range, and some of them have transaction fees, most of those run at 10 to 15 cents per transaction," she said.
As a vendor who frequently sells at shows and festivals, Redman has witnessed a dramatic shift in how customers pay.
"When we were on the road maybe 10 percent of our transactions were on cards. These days we're seeing 60 to 70 percent at some shows where everybody is just flashing a card," she said.
These processing fees can impact a small business's bottom line.
"It's a lot of money per year for a business going out if you start figuring that on the sales that are runnin through a store," she said.
Despite the cost, Redman will continue accepting credit cards but encourages shoppers to carry cash as a backup, especially at community events.
"If you're going to these events or going shopping, just as a backup. I would keep some cash with you," she said.
Grand Ledge resident Angie Dargatz shares this preference for physical currency despite the convenience of credit cards.
"Well they're convenient and they're fine, some people prefer them, me on the other hand if I've got cash, I'll use my cash," she said.
This story was reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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