Retailers warned to get ready for the new one pound coin

Retailers and businesses that use cash-receiving machines, such as car parking meters, have been urged to prepare for the arrival of the new 12-sided one pound coin in March.

The government has launched a campaign ‘Is your business ready?’ and a website, thenewpoundcoin.com, to help provide retailers with materials aimed at supporting them in their preparation for the new coin, which comes into circulation next year.

The changeover from the 30-year-old one pound coin to the “most secure” coin of its kind, a 12-sided coin that is thinner than the old one, weighs less and is slightly larger, will be complicated by the fact that there will be a six-month overlap, so all cash-handling machines and equipment will need to handle both coins.

The reason for the move is to reduce the costs of counterfeits to businesses and the taxpayer said the government with approximately one in thirty, one pound coins in circulation being counterfeit. The new coin includes new security features include a hologram-like image that changes from a ‘£’ symbol to the number ‘1’ when the coin is seen from different angles. It also has micro-lettering and milled edges.

David Gauke, the chief secretary to the Treasury, said: “The pound as we know it will not be round for much longer. The introduction of this new one pound coin will be a highly significant event and we are working with the Royal Mint to ensure key industries are ready and to ensure a smooth transition.

“The new one pound coin will be the most secure of its kind in the world and its cutting-edge features will present a significant barrier to counterfeiters, reducing the cost to businesses and the taxpayer.”

UK to introduce new one pound coins in March 2017

There is a timetable to help retailers get ready, until March 2017, retailers are being urged to prepare for the new coin, by checking whether they operate equipment that handles the one pound coin, as they will need to find out if adaptations or replacements are needed. They also need to make changes to their coin handling equipment, train their staff on the new features, and consider any changes to your cash handling processes e.g. counting, storing and banking during the co-circulation period.

Then there is a co-circulation period between March and September 2017, where both coins will be in circulation and accepted, so retailers need to ensure that equipment can accept or dispense both coins or just one. In addition, retailers need to make arrangements with their bank or cash in transit provider to return the current one pound coin and new one pound coin in separate packaging.

From autumn 2017, retailers need to ensure that they are not accepting the round one pound coin from their customers or distribute it.

“We would encourage business owners to visit the website as soon as possible, to find out how the new one pound coin could affect their business and what steps they need to take to prepare for the launch of the coin in March 2017,” explains The Royal Mint chief executive Adam Lawrence.

To help with the process The Royal Mint has provided a number of manufacturers with trial pieces of the new coin for equipment testing and development processes to come up with adaptions or new equipment that handle the new coin.

The Automatic Vending Association said it expects the changes to cost 100 million pounds for the industry.

Image: courtesy of The Royal Mint