Rounding up when sales are electronic is still happening. When you pay by EFTPOS or credit card, sale amounts do not need to be rounded up or down.
SEO AustraliaSEO

Rounding up - the ACCC guidelines are clear

Follow JustWeb on Twitter
Visit JustWeb's Facebook page

Follow Me on Pinterest


140 visitors are currently online at justweb®




Bookmark and Share

W3C Validated: XHTML | CSS

News, Blog and Article index page
The next time you are buying groceries in Australia, paying for petrol, or in fact making any purchase by electronic means such as EFTPOS or credit card, check to see if the retailer has rounded up (or rounded down) your total.

Rounding (up and down) was introduced in the early 90s because of the removal of 1c and 2c pieces from Australian currency.

Rounding Up
Under ACCC (Australian Competition & Consumer Commission) guidelines, the following rules apply to CASH transactions only:

  • 1 & 2 cents rounded DOWN to the nearest 10
  • 3 & 4 cents rounded UP to the nearest 5
  • 6 & 7 cents rounded DOWN to the nearest 5
  • 8 & 9 cents rounded UP to the nearest 10

These rules, however, do NOT apply to payments by credit card, EFTPOS, or cheque.

In December, 2000, the then ACCC Chairman, Professor Allan Fels, said:
"When it comes to rounding of small change in transactions, businesses are still confused."
And here, in 2012, it seems they are STILL confused. I see it all the time at servos, grocery stores, and other retailers.

What does rounding up matter?

But what does 1c or 2c here and there matter you may ask? To the individual, not very much, I guess. However, to a business which conducts thousands of transactions each month, its not a bad little windfall.

It is, however, a serious matter which can be investigated by the ACCC. The legislation that applies, according to the ACCC, is that items may not be available for the price at which they are advertised, thus contravening the consumer protection provisions of the Trade Practices Act 1974.

Rounding Transactions
Consumers have a right to lodge complaints against retailers if they feel they have not been dealt with fairly.

If the ACCC find the practice of unnecessary rounding up in a particular business is endemic, the business may well find themselves in some hot water, and having to answer to the ACCC.

The excuse, which has been used with me on a number occasions when I have politely pointed out to a retailer that they are not supposed to round up, is that their accounting systems are geared to cash and it would be too hard to run one system for cash, and another for electronic transactions (and cheques).

But don't take my word for it - check out the most recent press release by the ACCC dealing with rounding and EFTPOS transactions. And by "latest", I mean the year 2000. I suspect consumers simply don't know that rounding only applies to cash transactions.

Relevant contact details

Australian Competition & Consumer Commission (ACCC)
www.accc.gov.au/contact-us/contact-the-accc

NSW Office of Fair Trading
www.fairtrading.nsw.gov.au

Consumer Affairs VIC
www.consumer.vic.gov.au

Fair Trading: Department of Justice and Attorney-General QLD
www.fairtrading.qld.gov.au

Department of Commerce WA
www.docep.wa.gov.au

OCBA - Consumer and Business Services SA
www.ocba.sa.gov.au

Consumer Affairs and Fair Trading TAS
www.consumer.tas.gov.au

Consumer Affairs and Fair Trading - NT
www.nt.gov.au

Office of Regulatory Services ACT
www.ors.act.gov.au

Has this article been helpful or interesting?
Why not share it with others? Simply place your mouse over the buttons below to select from a range of social media websites, and thanks for sharing.



Click here to make an enquiry   Follow JustWeb on Twitter


Rob - JustWeb

21.06.2012


back to Newsletter Index

justweb® Newsletter Information
The articles throughout our website are ©2007-2019 justweb® and may not be reproduced without first seeking permission. If you want to be updated on a regular basis, please subscribe to our RSS feed.

Subscribe to the justweb® feed by email:



DISCLAIMER:
The content provided in this article is provided as is, and as such does not carry a warranty or guarantee by justweb® that it will provide results discussed. The article content provided is intended for informational purposes in order to introduce readers to new ideas, concepts, and/or reviews of new products and/or services. It is incumbent upon the reader to do further research before acting upon any advice or suggestions in this article. It is a condition of reading our articles that justweb® will not be held liable for any negative consequences that may result from the implementation of any information or purchases made as a result of reading this article.



Website Hosting

For fast & reliable web hosting Australia, we use & recommend the services of Quadra Hosting.

Web Hosting Australia Online Spell Checker Press Release Distribution Pay Per Click Advertising Business Alliance Partners

Read what some of our clients have to say about justweb®

^ Top of Page ^