Coin shortage during pandemic forces big-name retailers to rethink how customers pay

You may want to make sure you have your debit card next time you head to the store — major retailers are changing the way customers pay in response to the coin shortage sparked by the coronavirus pandemic.

Last month, the Federal Reserve addressed concerns that coronavirus shutdowns had stunted coin circulation.

“With the partial closure of the economy, the flow of funds through the economy has stopped,” Chairman Jerome Powell said. “We are working with the Mint and the Reserve Banks and as the economy re-opens we are starting to see money move around again.”

Coin production at the U.S. Mint also dropped due to COVID-19 safety measures, the reserve said in a June 11 news release.

To address the shortage, the reserve warned banks that it would begin rationing coins, allocating pennies, nickles, dimes and quarters on historical order volume among other factors.

The “coin allocation program” was still active as of July 8, according to a statement obtained by KARE.

Now, Walmart, Kroger and H-E-B are taking steps to mitigate coin use. Here’s how.

Walmart

The retailer is asking customers to avoid paying with cash, encouraging them to use debit and credit cards instead, KXTV reported.

“Like most retailers, we’re experiencing the effects of the nationwide coin shortage,” a spokesperson for Walmart said, according to the outlet. “We’re asking customers to pay with card or use correct change when possible if they need to pay with cash.”

Walmart said it still accepts cash at its stores, but that some registers and self-check kiosks have been converted to accept card payments only, KXTV reported.

The retailer doesn’t know how long the changes will be in place, according to the outlet.

Kroger

In response to the coin shortage, Kroger said it would no longer give coin change to customers who pay with cash, the Dayton Daily News reported.

Instead, customers have two options:

• They can round up their bill up to the nearest dollar to donate the difference to Kroger’s Zero Hunger Zero Waste foundation, according to the outlet.
• For those who don’t donate, cashiers will load the coin value onto the customer’s loyalty card, the Daily news reported. It will be automatically applied to the customer’s next transaction.

H-E-B

The Texas grocery store chain isn’t nixing coins altogether, but is asking customers to avoid using cash for payment or to pay using exacting change, KTRK reported.

H-E-B is also encouraging customers to take their coins to local banks or Coinstar kiosks in exchange for paper money, according to the outlet.

The grocer also launched Change for Charity which allows customers to donate their coins at checkout to support Texas Food Banks and other organizations providing aid amid the coronavirus pandemic, KTRK reported.

This story was originally published July 14, 2020 at 1:51 PM with the headline "Coin shortage during pandemic forces big-name retailers to rethink how customers pay."