The Coin Shortage Isnt Over Yet | Bankrate

In the summer of 2020, coins were hard to find
at American businessesI had so many issues when paying with cash; I
never got the right change. It was even worse for me when I needed
coins for things like laundromats, parking meters, and other places
that usually only accepted coins. It was a real hassle!

I’m requesting that customers pay with cards or
exact change whenever possible. Kroger is going the extra mile and
rounding up all cash purchases to the nearest dollar. You can opt
to have the extra money loaded onto your store loyalty card or
donated to charity. This is Walmart, The Home Depot and Kroger’s
way of giving back.

The shortage has improved, but it’s still an
issue

RED : Rare U.S. Coins | 5 Of The Most Rare US Coins

[add_toplist_link post=1]

I was in the checkout line at a Safeway in
Pacific Grove, California, when I saw a disagreement between a
customer and the cashier. The customer was owed 90 cents in change,
but the cashier didn’t have any coins. She asked the customer if
they had an extra 10 cents so she could give them a dollar bill
instead. This was only a year and a half ago, and it seems like the
coin shortage has been mostly forgotten, but it’s still an
issue.

I was getting pretty mad that the shopper
wouldn’t give me another 10 cents – I already had their 90 cents! I
just couldn’t believe it. I mean, why wouldn’t they cough up that
extra dime? It’s not like it was breaking the bank or anything. I
was getting pretty frustrated and just couldn’t understand why they
wouldn’t help me out.

I really wanted that dollar, but the cashier
said I’d get her in trouble if she gave it to me and left her
register with a 10 cents deficit. We had a bit of an argument, but
eventually I had to leave without my 90 cents.

The situation probably could have been handled
better on both sides, but more than anything, it opened my eyes to
the fact that the coin shortage isn’t over yet. My father-in-law
lives in the area, and he confirmed that many local businesses are
running short on coins. There are similar stories coming out of
North Carolina, Texas and elsewhere in California.

What caused the coin shortage?

[add_toplist_link post=2]

Due to the COVID-19 pandemic, the U.S. Mint
slowed coin production from March 2020 to June 2020 to reduce
employee exposure to the virus. The mint directly contributes 17
percent of the coins that circulate through the economy. Worse, the
movement of existing coins slowed to a crawl.

People also view: 9 Methods to Make a Nosebleed on Purpose – TSMP Medical Blog

Many businesses were closed in the spring and
summer of 2020 because of virus fears and government restrictions.
Even among stores that remained open, in-person retail activity
dropped dramatically, and many shoppers opted for credit and debit
cards because they were generally viewed as less germy than
handling cash. “With the partial closure of the economy, the flow
of funds through the economy has stopped,” Federal Reserve Chairman
Jerome Powell told the House Financial Services Committee
in June 2020.

Okay, but why is there still a coin
shortage?

[add_toplist_link post=3]

I was wondering about that too! By June 2020,
the U.S. Mint was back in the game and the Federal Reserve put
together a team to help tackle the coin shortage. We thought it
would be fixed pretty quickly, but the pandemic has really slowed
things down. It’s just another example of how the pandemic has
thrown a wrench in the supply chain and caused a ripple effect
throughout the economy.

I’m hearing a lot about the coin shortage
lately, but I’m not sure it’s accurate to call it a “shortage”.
It’s more of an imbalance. The US has plenty of coins, they’re just
not circulating as fast as they should be. To help, the task force
is suggesting that people use their coins or deposit them in a
bank. It’s all about raising awareness of the issue so that we can
get the coins moving again.

Some businesses have offered related promotions.
For instance, some 7-Eleven stores have given a free Slurpee to
anyone who exchanges $5 in coins for a $5 bill. Other retailers
have requested exact change or recommended credit and debit card
payments. Many stadiums have gone cashlessI’m all about convenience
and speed, so I’m really into the idea of contactless payment. It
helps to reduce the need for cash exchange, making transactions
smoother and quicker than ever before. Additionally, it’s
beneficial for hygiene purposes. No more handling money or
exchanging cards. It’s a great way to make the buying process
easier and more efficient.

“Reverse ATMs” that load cash onto a prepaid
debit card are often provided as a workaround for those who may not
have a credit or debit card. The unbanked population has been
shrinking, according to the FDICI’m part of the 5.4 percent of U.S.
households that were present in 2019. Since then, that number has
probably gone down and I’m sure I can count myself as one of the
few. It’s interesting to see how those numbers have changed over
time. I’m sure it’s due to a number of different factors.
Regardless, it’s a good reminder that we’re all part of a bigger
picture.

Cash usage has been trending down for
years

[add_toplist_link post=4]

Bills and coins were used in just 19 percent of
all payments in October 2020, the Federal Reserve reportedI’ve seen
a huge drop in the amount of cash I’m using since October 2019 –
just one year ago! That’s a big difference. It looks like debit
cards are the most popular way to pay now, closely followed by
credit cards. Together, they make up 55% of the payment methods
used by Americans. It’s pretty clear that our payment habits are
changing, but not as quickly as they have this year.

I never thought this would happen, but both New
York City, Philadelphia, San Francisco and New Jersey passed laws
just before the pandemic that gave consumers the right to pay with
cash. This essentially made cashless stores illegal. Massachusetts
had a law like this already, but it was much older. The point of
these laws was to help people without bank accounts, but then the
pandemic changed the game.

During the COVID crisis, many people have been
afraid that they can contract the virus by touching contaminated
objects, potentially including cash. Experts have largely
downplayed those fears and a 2018 study conducted by our sister
site CreditCards.comI recently heard that the University of Texas
found out that credit cards have more germs on them than the money
we use every day. Even though the possibility of getting sick from
these germs is very low, there’s still a thought that cash is
gross. It’s pretty crazy to think that credit cards can be dirtier
than money. It just goes to show that you really never know what
you are dealing with!

The bottom line 

RED : 35 Recipes to Make with Hard-Boiled Eggs

[add_toplist_link post=5]

I’m a big fan of using my credit cards as widely
as possible, since I earn cash back on every transaction and I
avoid interest by paying in full each month. Credit cards also
offer superior fraud protections and additional perks ranging from
extended warranty coverage to purchase protection, airport lounge
access and more.

I get why some folks prefer to pay with cash for
a variety of reasons. Whether it’s personal preference, trying to
stay away from accumulating debt, or an inability to be approved
for credit, cash is still an option for many. It’s too bad that the
current coin shortage is still an issue. Unfortunately, we can’t
control it on our own, but if we come together, we can make a
change.

I love using cash, so I make sure to save up all
my coins. To make sure I’m not the only one, I encourage others to
do the same too! Whether it’s depositing your coins at a bank or
buying something small from a store, putting coins to use is a
great way to help out.

Have a question about credit cards? E-mail
me at ted.rossman@bankrate.com and I’d be happy
to help.