Rounding Scheme Launched

The Central Bank's Rounding scheme has begun today in an effort to reduce the number of one and two cent coins in circulation.

From today, Wednesday 28 October, retailers can round customers change to the nearest five cents, under the new scheme being run by the Central Bank, at the request of the Department of Finance.

The key features of Rounding are:

• Rounding will be conducted on a voluntary basis

• 1c and 2c coins will remain legal tender

• Rounding will apply only to cash payments

• The total amount of any bill will be rounded down or up to the nearest 5c.

The Central Bank has issued guidance to retailers as to how to change can be rounded up or down:

• 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

The rounding initiative arose because 1c and 2c coins are not used actively by consumers and are expensive to mint.

For Rounding to happen, both the retailer and the customer must accept it; both will have the right to use exact change. Rounding only takes place on the total bill, not on individual prices, so existing price points (for example items priced at 0.99c) will remain unchanged. Rounding will not apply when bills are paid electronically, such as by debit card, credit card or by store card. Where a retailer is applying Rounding they can apply it automatically without asking the consumer – it will be up to the consumer to say if they don't want Rounding applied.

(MH/LM)