December 2, 2021

Beyond Going Long

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In stores, the purchase amount will be rounded.  Do we expect an increase?

In stores, the purchase amount will be rounded. Do we expect an increase?

image clarification. Source: Pixabay.com

President Zuzana Shaputova on Thursday (November 18th) signed an amendment to a law relating to price rounding in stores. The goal is to restrict one-cent and two-cent coins in circulation.

Parliament agreed to round final purchase prices to 5 cents when paid in cash in early November. Rounding will begin in stores on July 1, 2022. We will have one and two cents in our wallets, but we will still be able to pay with them.

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The individual prices of the merchandise will not be rounded, but only the final purchase amount will be rounded. For example, if the purchase cost is 12.28 euros, the customer pays 12.30 euros when paying in cash. If he pays by card, the price will not be rounded – he will pay 12.28. For example, if they charge him 10.02 euros, they will be rounded – they will pay 10 euros in cash.

How will it be rounded when paying with cash?

  • If the amount ends with one or two cents, the price is rounded down
  • If the amount ends in 3, 4, 5, 6, and 7 cents, the price is rounded up to 5 cents
  • If the amount ends with 8 or 9 cents, the price is rounded up

The National Bank of Slovakia (NBS) has recalculated that the impact on households should be zero to two cents per month – sometimes we pay more, sometimes less. Because of rounding, the prices of individual goods should not be increased either. For traders, this amendment to the law is intended to help – they will save the costs of handling small coins.

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This measure should save money for merchants, banks and NBS, which issues coins. If these coins gradually disappear from circulation, then traders will pay less to the banks for processing them and will save NBS when these coins are issued.