The U.S. Mint is asking for help in solving the nationwide coin shortage caused by the coronavirus pandemic.
The COVID-19 shortage of pennies, nickels, dimes and quarters led the Federal Reserve to start rationing coins in June, and banks have been begging customers to break out their piggy banks to pump more coins into circulation.
Because of the currency deficit, more retailers and restaurants are urging consumers to pay with exact change or cards and some temporarily are either not giving change or, instead, offering it on loyalty cards.
Now, the Mint, which manufactures the nation’s coin supply, is encouraging consumers to “start spending their coins, depositing them, or exchanging them for currency at financial institutions or taking them to a coin redemption kiosk.”
“Until coin circulation patterns return to normal, it may be more difficult for retailers and small businesses to accept cash payments,” the Mint said in a statement Thursday. “For millions of Americans, cash is the only form of payment and cash transactions rely on coins to make change.”
The Mint says it has been operating at “full production capacity since mid-June, minting almost 1.6 billion coins during the month of June” and expects to produce 1.65 billion coins per month for the rest of the year. In 2019, it produced an average of 1 billion coins per month.
Since March, many businesses and experts have encouraged consumers to use contactless payment systems because of concerns about the potential spread of the viral infection with cash and credit cards changing hands.
Several retailers including Walmart have converted some self-checkout registers to card-only.
“We’re asking customers to pay with card or use correct change when possible if they need to pay with cash,” Walmart spokeswoman Molly Blakeman said in a statement to USA TODAY, noting cash is still welcome.
At select Target stores shoppers are being asked to use “exact change or alternative payment, if they’re able,” spokeswoman Danielle Schumann said.
Other stores like Kroger and Stop & Shop are suggesting that customers paying with cash should round up their total, with the difference donated to a charitable cause.
Kroger also is loading coin change onto a customer’s loyalty card so the shopper can use that extra change on the card during the next trip for groceries.
Cash is still king
The finance culture has been discounting the importance of coins for years, even as they have continued to play a role in many aspects of day-to-day life.
Yet while some coin slots have been swapped out for card readers –like on soda and snack machines, parking meters and even slot machines – coins are still king at many locally-owned smaller businesses like laundromats.
Over the years, many big banks and even some credit unions have phased out services that would count coins and others have charged fees to customers and non-customers alike.
These days, instead of being charged fees, you might find a bonus at your local bank. To help boost coin supply, several banks have been waiving fees and going as far as offering extra cash back.
Some want the coins wrapped or rolled like Pittsburgh-based PNC Bank, where customers with wrapped coins can make appointments to bring them into a branch.
Others want the change loose as it will be fed it into coin counting machines.
James Thurston, a spokesman for the Ohio Bankers League, says consumers can take advantage of the shortage and make some money. “Many (league) members are taking steps like offering coin counting machines at no charge to help customers convert coin holdings to cash or deposits,” he said.
Through Sept. 1, Texas-based Amarillo National Bank is paying an extra 10% up to $500 to exchange coins for cash with no fees.
Wisconsin-based Community State Bank’s coin buyback program, which ended July 21, offered an extra $5 for every $100 in coins brought in. One person brought in $4,000 in coins – netting a $200 bonus.
“People brought stuff in cans, bags and jars,” said Greg Wall, the bank’s chief innovation officer. “People have been sitting on this stuff for a long time and they finally had an opportunity to do something.”
How to cash in coins for freebies
Some businesses are offering bonuses for cashing in.
Certain Wawa locations are offering customers who turn in rolled coins a free soda or sub in addition to the equivalent sum in bills.
Select 7-Eleven stores are incentivizing customers to bring in change, offering a free Slurpee to those who trade $5 in change for $5 in cash.
During the pandemic, Coinstar kiosks remained available but foot traffic at supermarkets and other locations was down and fewer people were exchanging coins, according to Coinstar CEO Jim Gaherity.
“As lockdowns end, coin transactions and volumes through Coinstar kiosks are growing and, accordingly, we’ve been making more frequent coin pick-ups to help get coins back in circulation,” Gaherity said in a statement.
Coinstar kiosks offer eGift Cards in exchange for coins without a fee. To get paper for your coins, there’s an 11.9% service fee, which can vary by location.
