Federal reserve coin shortage affects local businesses

Local News

LUBBOCK, TX–Businesses across Lubbock are asking customers to not pay with cash and instead use their cards all because of a Federal Reserve coin shortage leading to a lack of change. 

Yesterday, Rhonda Rogers pulled up to a Burger King drive through window where the restaurant told her that due to the federal reserve coin shortage they were unable to give her any change. 

“Not knowing that until you get all the way up there and then hand them your money and you’re not going to get anything back. It was frustrating!” said Rogers. 

The last few months as businesses have had to close, the mint was forced to partially shut down leading to less production of coins. 

“Customers couldn’t get into bank lobbies to deposit the coins so there wasn’t as much flowing through the channels,” said Assistant vice President at Amarillo National Bank Erik Schrader. 

But bills are not in short supply, which Schrader says is because of one thing.

“People are more apt to keep coins at home and save it in big jars or buckets or whatever and I don’t think people normally do that with cash,” Schrader said. 

But according to the Federal Reserve businesses are allowed to refuse cash as a form of payment or only accept exact change. However, businesses could be prone to fraud or theft if they don’t notify customers ahead of time.

As for Rodgers she plans on using her card form here on out. 

“Well I’ll definitely use a card! I’m not going to give them all my cash and change again,” said Rogers.  

Lubbock National Bank says that if consumers were to deposit any coins they have it could help the coin shortage. In fact, until September 1st, Lubbock National Bank is paying those who deposit their coins 10 percent of when they bring in.

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