Buffalo, NY (WBEN) In the months after the coronavirus pandemic, stores are finding it harder and harder to make exact change. A coin shortage around the country is happening, and experts say there is more than one reason for it.
"It mostly has to do with people spending fewer coins, and fewer coins going through the system. Restaurants and other businesses don't have them to give them out as change, and then they're not getting redeposited at the bank, so this who normal cycle of money movement has come to a halt," says Ted Rossman of CreditCards.com. He notes 83 percent of coins take that path, but the other 17 percent come from the US Mint, which was closed for a while becuse of the pandemic, which is also contributing.
Rossman says that has been a mainstream issue in the last couple of weeks. "A lot of companies, Walmart, CVS, Dollar Tree are coming out and asking either pay with a card or pay with exact change. Kroger has taken it a step further and is not giving coins as change anymore. Kroger is either putting the change on its loyalty card or rounding up and donating the change to a charity with your permission," notes Rossman.
Rossman says cash is not dead. "The Federal Reserve found out last year 28 percent of transactions were debit cards, 26 percent cash, and 23 percent were credit card, so it's an even mix. Half of transactions under $10 were cash. While the pandemic and other trends are pointing toward cards and mobile payments, cash is still a big part of the economy," reminds Rossman.
