Fact check: Walmart is not banning cash from its stores, despite national coin shortage

The claim: America’s top retailer is demanding card payments only

It won’t take too deep or detailed a Google or social media search to find aggrieved, fearful, even angry claims that specific retailers have stopped accepting cash, along with passionate debate about the dire consequences of a “cashless society” and the playing out of biblical prophecy.

When one of those retailers is Walmart, the conversation gets quite active and serious.

One such post was made on July 12 by Facebook user Jamie McCune states: “Just so you guys know. Starting tomorrow Walmart is card only. No cash at all.”

The Facebook user has not responded to a request for comment on the assertion.

But Walmart still accepts cash, a company spokesperson said.

More:Fact check: Yes, there's a national coin shortage. Here's why

It’s coins, not cash

The problem is an ongoing coin shortage, triggered by the COVID-19 pandemic. 

The U.S. Mint, according to production numbers at its website, produced 11.94 billion circulating coins in 2019 and has produced 6.52 billion so far this year.

Given the fact that coins don’t wear out easily, there’s generally more than enough to go around. Decades-old pennies, nickels, dimes and quarters, and the less common half-dollar and dollar coins, remain in use.

More:'Holiday shopping will be different': Walmart says it will keep stores closed this Thanksgiving

But much of the country’s retail activity was halted this spring by COVID-19 and, by extension, reducing the number of coins in circulation. The Federal Reserve in a news release on June 30 said, “With establishments like retail shops, bank branches, transit authorities and laundromats closed, the typical places where coin enters our society have slowed or even stopped the normal circulation of coin.”

That has left coffers short of coins as restrictions and lockdowns have been lifted, and shoppers have returned to stores and restaurants. It’s had an impact, because even with modern technology allowing people to pay for goods and services not only with a card but a phone app, there continue to be a lot of cash transactions.

More:Fact check: What's true and what's false about coronavirus?

According to a letter from business associations representing the convenience store, grocery, vending and assorted other industries to Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin, people earning less than $25,000 a year make 43% of their payments in cash, and those earning between $25,000 and $50,000 a year make 35% of their payments in cash.

The letter called on the Fed to distribute more coins from its inventory, the U.S. Mint to increase production and for coin distribution to be prioritized for the businesses most affected.

Efforts are underway to alleviate the situation. The Fed announced in the June 30 release the formation of a task force to address the disruption. The U.S. Mint announced on Thursday that it has stepped up coin production while maintaining proper safety and sanitation protocols to protect its employees against COVID-19. It also asked people not to hoard coins, but to spend them and put them back into circulation.

Still, some stores and restaurants have posted signs on their doors and drive-thru windows asking people to pay with cards or exact change if possible.

Walmart: ‘Cash is welcome’

But Walmart isn't banning cash. 

“Like most retailers, we’re experiencing the effects of the nationwide coin shortage,” An said Avani Dudhia of Walmart corporate communications. “We’re asking customers to pay with (a) card or use correct change when possible if they need to pay with cash. Cash is welcome at all of our stores.”

But Dudha said Walmart has converted some of its self-checkout registers to card-only registers. She also said customers are given the option to donate the coinage in their change to charity.

Our ruling: False

Based on our research, the claim is FALSE. Walmart has not stopped people from using cash at its stores. Walmart is converting some of its self-checkout registers to card only, but the stores still accept cash payment. 

Our fact-check sources

• Email from Walmart Media Relations, Bentonville, Arkansas
• U.S. Mint, Washington, D.C., 
• Letter from retail associations to the Federal Reserve
• The Gadsden Times, "Gadsden sees some effects from national coin shortage."
• Federal Reserve, Washington, D.C., June 30 news release

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