Rounding of cash transactions
Introduction
Rounding was rolled out nationwide from Wednesday 28 October 2015. Rounding means that the total amount of a bill will be rounded up or down to the nearest 5 cent. It applies only to cash payments and does not apply to bills paid electronically - by debit card, credit card or by store card.
Rounding aims to reduce the use of 1 and 2 cent coins. These coins are not actively used by consumers and the cost of issuing them is more than the value of the coins. A 1 cent coin costs 1.65c to produce while 2 cent coin costs 1.94c. However 1 and 2 cent coins will continue to be legal tender.
The key features of rounding are:
- Rounding is voluntary for retailers and customers
- 1c and 2c coins remain legal tender
- Rounding applies only to cash payments
- The total amount of any bill will be rounded down or up to the nearest 5 cent
The retailer can apply rounding automatically without asking the customer – it is up to you to say if you don’t want rounding applied to your bill. However customers must always be given exact change if they request it.
Rules
Where a total bill is being paid in cash and the number of cent to be paid does not end in zero or five - requiring the customer to use 1 and 2 cent coins in payment or the retailer to use such coins in giving change - the amount of change paid will be rounded to the nearest 5 or 10 cent:
- 1 and 2 would be rounded down to zero
- 3 and 4 would be rounded up to 5
- 6 and 7 would be rounded down to 5
- 8 and 9 would be rounded up to 10
Examples
Under rounding a bill can be rounded up or down, as follows:
- A transaction costing €10.21 or €10.22 would be rounded to €10.20
- A transaction costing €10.23 or €10.24 would be rounded to €10.25
- A transaction costing €10.26 or €10.27 would be rounded to €10.25
- A transaction costing €10.28 or €10.29 would be rounded to €10.30
Two individual items priced at €10.99 and €3.49 respectively will remain at these prices, though the total bill (€14.48) would be rounded up to €14.50.
Three individual items priced at €2.99, €4.49 and €8.18 respectively will remain at these prices, though the total bill (€15.66) would be rounded down to €15.65.
Informing customers about rounding
Shops and other retailers should tell you that they are using rounding through appropriate in-store signage. This could include, for example, a notice on entrance doors or at the till. The Central Bank will supply suitable signage to retailers, free of charge, before the rollout on 28 October.
If you have a complaint or comment about how rounding is being implemented you can email or write to the Central Bank at the address below.
Where to apply
Central Bank of Ireland
P.O. Box No. 559
Dublin 1
Ireland
Tel:(01) 224 6000
Locall:1890 777 777
Homepage: http://www.centralbank.ie/
Email: rounding@centralbank.ie