Rounding to multiples of 5 cents

When receiving a cash payment, retailers may round the payable amount to the nearest multiple of 5 eurocents. This optional practice must be clearly announced, however, by a sticker on the shop front and another one at the checkout point. Rounding has made paying easier and reduced the overall cost of the cash payment system. The rounding rule does not apply to debit card and other noncash payments.

Have the 1 and 2 eurocent coins been abolished?

No, the 1 and 2 eurocent coins have not been abolished, and you can continue to pay with them. But as demand for the 1 and 2 eurocent pieces declines, they are bound to become increasingly rare. Apart fromFinland, theNetherlandshas been the only euro country that has endorsed rounding. But whereas inFinlandthe practice has been made mandatory, retailers in theNetherlandsare free to decide if they wish to round cash payments.

Will rounding lead to higher prices?

Rounding only concerns the final checkout balance. If the balance ends in 1 or 2 cents, it will be rounded downwards; if it ends in 3 or 4 cents, it will be rounded upwards. The same goes for amounts ending in 6 or 7 cents (downwards) or in 8 or 9 cents (upwards). Research has shown that chances of upward or downward rounding are exactly equal. So rounding does not push up prices.

National Forum on the Payment System

The rounding measure was pioneered by the National Forum on the Payment System (Maatschappelijk Overleg Betalingsverkeer). This consultative Forum brings together representatives from banks and retailers, but also from interest groups such as consumers, senior citizens and the functionally challenged. The Forum is chaired by De Nederlandsche Bank.