Rounding of 1c and 2c coins to start on Oct 28th
The rounding of 1c and 2c coins is set to begin on Wednesday, 28 October 2015.
The Central Bank is to oversee the project, following the government’s decision to roll-out the rounding of the coins nationally. The move follows a successful trial that was conducted by the National Payments Plan in Wexford in 2013. The reason, it is deemed necessary is that a 1 cent coin costs 1.65c to produce while 2 cent coin costs 1.94c.
The key features of this process, include that it will be conducted on a voluntary basis, with 1c and 2c coins remaining legal tender. The practice of rounding will apply only to cash payments, and the total amount of any bill and not the individual goods will be rounded down or up to the nearest 5c.
For example, 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 €8.17 respectively will remain at these prices, though the total bill (€15.61) would be rounded down to €15.60.
For businesses, the move will result in less coin handling, less hassle, and lower bank charges. It adds that while your customers will welcome rounding, it is voluntary for you both.
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 roll-out on 28 October.
The Central Bank will engage with industry bodies and other stakeholders in advance of the rollout to ensure that they are fully prepared for it, as well as ensuring that the public and consumers are well informed.
Six EU Member States have already introduced a rounding policy, The Netherlands, Sweden, Finland, Denmark, Hungary and Belgium.