NextGen

Some Stores Eschew Giving Exact Change as Coin Shortage Continues

One of the pandemic's more unexpected effects has been a shortage of coins, which has led to certain retailers deciding to no longer give exact change to customers.

CNN Business is reporting that some businesses, such as CVS and South Jersey's favorite convenience store chain, WaWa, are encouraging their customers to pay with exact change or, if not, giving customers not coins but gift cards or loyalty cards redeemable for future purchases, all due to the widespread shortage of coins. The problem is so bad that, last month, the Federal Reserve began literally rationing coins, imposing order limits in order to ensure a fair distribution of loose change.

Coins are in short supply partially because people aren't shopping as much as they used to and so aren't circulating them through the economy, and partially because the U.S. Mint produced fewer coins in the spring to protect workers from infection. The United States experienced a similar coin shortage in 1999, which was met with a similar rationing scheme. The reason for that shortage was actually a strong economy, according to Mark Weller, executive director of the nonprofit group Americans for Common Cents, quoted at the time in the Denver Business Journal. "As the economy grows strong, the Mint must produce more pennies because people are putting them in a jar, a dresser drawer, a desk or closet," he said.