What might seem a small worry in modern business, coin shortages are a reality in 2020 thanks to COVID-19.
Just as the COVID-19 pandemic has created shortages in supplies of things we tend to take for granted, the virus has also triggered a shortage of something else we often give little thought to — pocket change.
In the past few months, coin deposits from depository institutions to the Federal Reserve have declined significantly and the U.S. Mint’s production of coin also decreased due to measures put in place to protect its employees.
Because banks around the country are running low on all coins, the Federal Reserve has been forced to ration scarce supplies. Effective June 15, 2020, the Federal Reserve ordered a temporary coin order allocation in all Reserve Bank offices and Federal Reserve coin distribution locations.
While banks are working on several fronts to mitigate the effects of low coin inventories managing the allocation of existing Fed inventories, working with the Mint, as issuing authority, to minimize coin supply constraints and maximize coin production capacity, and encouraging depository institutions to order only the coin they need to meet near‐term customer demand.
It translates into banks that typically dispense 400 to 500 rolls of pennies each week being cut back to just 100 rolls, with similar cutback in nickels, dimes, and quarters. The impact is being felt by businesses such as quick-service restaurants, grocery stores and convenience stores that need coins to stock cash registers and make changes often.
The good news for AMSEC customers who have the convenience of Q&A Payment Solutions change exchange technology is that although banks are limiting the amount of coin each retailer can order, they are not limiting the amount ordered, but rather reducing the amount packed out to the customer.
Retailers can adjust the amount of coin that can be ordered on the AMSEC website or in the Q&A Payment Solutions website to limit the amount of coin order to each bank’s minimum, ensuring they stay in balance.
Retailers using AMSEC technology have less to worry about with the coin shortages created by the pandemic thanks to the partnership with Q&A Payment Solutions. By offering uniformity between your business, your bank, and your armored provider, operations are simplified saving time and energy.
The AMSEC Change Exchange program uses technology that works with various armored providers both national and regional and fully manages the comprehensive change order process. The partnership between AMSEC and Q&A Payment Solutions provides streamlined efficiencies in the otherwise tedious, time-consuming change order process.
AMSEC can help you with all your cash management solutions. Contact one of our experts today. Bring your questions and we will give you answers. Secure, manageable solutions to processing your daily cash transactions is what we do best.