Kroger Adjusts Checkout Policy Amid Coin Shortage: What Cash Shoppers Need to Know

Kroger’s New Policy Targets Coin Circulation Issues, Affecting Cash Transactions

Kroger, one of the largest grocery retailers in the United States, has implemented a new checkout policy designed to mitigate the effects of the persistent national coin circulation issues—often colloquially termed the “penny shortage.” This operational adjustment, while intended to streamline store operations, poses potential difficulties for customers who rely heavily on cash for their grocery purchases.

The core of the policy is to reduce the store’s reliance on small denomination change, particularly pennies, which have been difficult for retailers nationwide to acquire and distribute since the onset of the circulation crunch in 2020.

For shoppers, this means that paying with exact change, especially involving pennies, may become more complicated, and the method by which change is returned has shifted significantly.

Understanding the Policy Shift and Its Mechanics

Kroger’s policy change is a direct response to the Federal Reserve’s warnings about reduced coin flow, which stemmed largely from pandemic-related closures and shifts in consumer behavior towards digital payments. To cope, Kroger is encouraging customers to utilize methods that bypass the need for physical change.

How the Policy Impacts Your Transaction

While the specific implementation can vary slightly by location and state regulations, the policy generally focuses on three key areas:

• Encouraging Digital Payments: Customers are strongly encouraged to use credit cards, debit cards, or mobile payment apps (like Kroger Pay) to eliminate the need for change entirely.
• Exact Change Preference: Cashiers are instructed to prioritize transactions where customers can provide the exact amount due, minimizing the need for the store to dispense coins.
• Alternative Change Solutions: When exact change cannot be given, instead of handing back a handful of pennies, Kroger is promoting alternatives. These often include loading the remaining change onto a store loyalty card, applying it as a credit toward the next purchase, or offering the option to donate the small amount to a charity partner. In some instances, transactions may be rounded to the nearest nickel or dime, though this practice is heavily regulated and varies.

This shift is particularly challenging for individuals who budget strictly in cash, where providing exact change is often essential for tracking expenditures accurately.

The Broader Context: Why Retailers Are Running Out of Pennies

The necessity for Kroger and other major retailers to implement such policies stems from a fundamental disruption in the U.S. coin supply chain, which began several years ago but remains an issue in 2025.

In 2020, the Federal Reserve acknowledged a significant slowdown in the circulation of coins. Coins were not being returned to banks and retailers at the usual rate because:

1. Bank and Business Closures: Lockdowns and reduced hours meant fewer opportunities for businesses to deposit coins back into the system.
2. Shift to Digital: Consumers increasingly opted for contactless and digital payments, leaving coins sitting idle in jars and homes rather than circulating through the economy.
3. Coin Production Lag: While the U.S. Mint continued production, the volume could not immediately compensate for the massive slowdown in circulation.

“Although the Federal Reserve is working with the U.S. Mint and others to increase the supply of coins, it remains imperative that the public start spending their coins, rolling them, or depositing them at their bank or credit union.”

— Federal Reserve Statement (Regarding the initial circulation crisis)

Kroger’s policy is a practical response to this persistent challenge, ensuring that the limited supply of coins they do receive can be used efficiently.

Implications for Consumers and Financial Inclusion

While digital payment methods offer convenience, the new policy raises concerns about financial inclusion and the practical realities of cash budgeting.

Impact on Cash-Reliant Shoppers

For millions of Americans, cash remains the primary or only viable payment method. This includes unbanked populations, those managing tight budgets, and individuals who prefer cash for privacy or to avoid debt.

• Budgeting Difficulty: When transactions are rounded or change is applied to a loyalty card, it can disrupt strict cash envelope budgeting systems, making it harder for shoppers to track every penny spent.
• Inconvenience: Having to search for exact change or accept store credit instead of physical currency adds friction to the checkout process, particularly during busy shopping periods.
• Financial Exclusion: Policies that implicitly or explicitly discourage cash use can disproportionately affect lower-income individuals who may not have access to or prefer not to use banking services.

Retail Industry Trend

Kroger is not alone. Other major retailers, including convenience stores and fast-food chains, have adopted similar measures, such as temporary coin refusal or the use of automated self-checkout machines that only accept cards or large bills, forcing customers to use exact change or digital options.

This trend signals a broader, long-term shift in the retail landscape, where the handling of physical currency, especially low-value coins, is becoming increasingly automated or discouraged.

Key Takeaways for Kroger Customers

To navigate Kroger’s updated checkout policy effectively, cash customers should be aware of these points:

• Prioritize Exact Change: Whenever possible, try to have the precise amount of cash ready, including pennies, to ensure a smooth transaction.
• Consider Digital Alternatives: If you frequently shop at Kroger, utilizing their mobile payment app or a debit card will eliminate the coin issue entirely.
• Know Your Options for Change: If you are due change, be prepared to accept it loaded onto your Kroger Plus Card or as a donation, rather than receiving physical coins.
• Be Patient: Understand that cashiers are operating under specific instructions designed to manage a national economic issue, not to inconvenience individual shoppers.

Conclusion

Kroger’s decision to modify its checkout policy is a necessary operational adjustment in the face of persistent national coin circulation challenges. While the policy helps the retailer manage its limited coin supply, it places a greater burden on cash-paying customers, requiring them to adapt their payment habits or accept non-cash forms of change. As the retail sector continues its rapid push toward digitalization, consumers relying on traditional payment methods must remain informed about these evolving store policies to ensure efficient and accurate grocery shopping.