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Amorymeltzer 13 hours ago

Some interesting complications with rounding I had not heard about before were mentioned here, worth noting I think, especially given the prominence of SNAP in the news lately:

>Four states - Delaware, Connecticut, Michigan and Oregon - as well as numerous cities, including New York, Philadelphia, Miami and Washington, DC, require merchants to provide exact change, according to the National Association of Convenience Stores (NACS).

>In addition, the law covering the federal food assistance program known as SNAP requires that recipients not be charged more than other customers. Since SNAP recipients use a debit card that’s charged the precise amount, if merchants round down prices for cash purchases, they could be opening themselves to legal problems and fines, said Jeff Lenard, spokesperson for NACS.

>“Rounding down on all transactions presents several challenges beyond the loss of an average of 2 cents per transaction,” Lenard said. “We desperately need legislation that allows rounding so retailers can make change for these customers.”

AnotherGoodName 13 hours ago | parent | next [-]

They can round down the card transactions too if it’s really a problem to charge differing amounts.

For those that seriously think this would be a major problem there was a comedy skit circulating in Australia when this happened. A guy would push his car to the petrol pump, fill with 2c of petrol, rounded down to 0. The guy at the counter just laughed at it. You could in theory do this 1000 more times (would take hours) for $20 of free petrol. At least until the worker got sick of it and enforced the whole right to refuse service.

SkyPuncher 10 hours ago | parent | next [-]

> enforced the whole right to refuse service.

This is what everyone forgets. If you can't provide exact change, then you can refuse service.

whycome 9 hours ago | parent [-]

It’s a self-service gas station. Refuse…yourself? You pumped the gas before paying.

dmix 8 hours ago | parent | next [-]

If you pay with cash you’re going to be going to the cashier first anyway.

thescriptkiddie 8 hours ago | parent | prev [-]

in the us, gas stations require you to pay before filling

12 hours ago | parent | prev | next [-]
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mortar 11 hours ago | parent | prev | next [-]

I had this same idea and seem to recall even trying it, but it was mostly thwarted when they added minimum liquid delivery amounts.

11 hours ago | parent | prev [-]
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oktoberpaard 12 hours ago | parent | prev | next [-]

In the Netherlands cash payments get rounded to the nearest 5 cents, in both directions. Card payments are not rounded. If I’m not mistaken, you can still demand exact change according to the law and you’re allowed to pay the exact amount (cents are still legal tender). Most merchants wouldn’t be able to give you exact change, so it depends on the situation what would happen. I’ve never heard of such a situation happening, though.

coded_monkey 9 hours ago | parent | next [-]

You are mistaken. Merchants are allowed to round to the nearest 5 cents and you can’t do anything about it (except pay by card). Of course, budget stores like Lidl and Aldi still use them but any other corporation is not going to care.

http://www.nederlandsemunten.nl/Artikelen_over_munten/De_cen...

pests 11 hours ago | parent | prev [-]

If someone demands exact change is it allowed to give them more? What if you don't have the exact change?

10 hours ago | parent | next [-]
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BenjiWiebe 10 hours ago | parent | prev [-]

You could always refuse service, I guess.

phantom784 13 hours ago | parent | prev | next [-]

For the SNAP law, could they just round down SNAP purchases in the same way to be compliant?

anticorporate 12 hours ago | parent | next [-]

The SNAP equal treatment rule requirement works in both directions: Prices cannot be higher or lower for SNAP recipients. As a retailer, there is an option to request a waiver, though.

SkyPuncher 10 hours ago | parent | next [-]

IMO, this is a strawman that is either going to be ignored or fixed easily.

The law did not account for every possible situation. Removal of the penny from national currency is clear a situation where minor variations on otherwise normal transactions would not be in violation of the intent of the law.

It'd be like TSA griping that your 100ml bottle of mouthwash was overfilled by .1ml because of slight variations in the filling process. Nobody cares.

anticorporate 9 hours ago | parent [-]

I work in admin for a retailer. We got a nastigram from USDA last week reminding us that we were in no circumstances to help SNAP recipients in any way. The current administration very much does not care what the intent of the law is, and is actively looking for trivial violations as an excuse to punish SNAP recipients and SNAP retailers. It would not surprise me at all to see a retailer banned from the program for how they round pennies.

SkyPuncher 5 hours ago | parent [-]

Again. Context matters.

Last week, the government was in a shutdown and it was unclear if SNAP benefits were going to go out. That's not the same as rounding pennies.

phantom784 12 hours ago | parent | prev | next [-]

How does this work with coupons, discount for loyalty card holders, etc.?

Presumably that's fine because a SNAP recipient has access to those same discounts. So wouldn't this be the same - the "cash rounding" discount is available to SNAP and people paying cash?

rtkwe 10 hours ago | parent [-]

Anyone can have a coupon the law is about not special fees or discounts to SNAP recipients, and since EBT/SNAP cards are essentially debit cards them always being charged exact change could be litigated as differential pricing in theory, which in a country as big and sue happy as the US means someone will try it eventually.

jkaplowitz 12 hours ago | parent | prev [-]

So, that sounds like a yes, they could round up or down SNAP purchases just like cash purchases.

Uvix 12 hours ago | parent [-]

No, because they'd still be paying less/more than people paying with credit cards, debit cards, or checks.

9 hours ago | parent | next [-]
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wat10000 11 hours ago | parent | prev | next [-]

Round them all. Why is this so difficult?

Uvix 9 hours ago | parent [-]

Retailers will reject ever rounding down because they lose money, and customers will reject ever rounding up because they lose money.

zamadatix 9 hours ago | parent [-]

Completely different discussion. Regardless, you skipped explaining why these options worked for Canadian Penny (just 12 years ago) at a time when their penny had more buying power than the current US penny, yet the exact same thing cannot ever possibly work for the US penny.

Things don't just happen to cost *.99 today either, the market just has wiggle room for bullshit about values. With inflation, the coinage that corresponds to also inflates over time. The penny is long past its time.

Furthermore:

> Rounding to the closest nickel will cost consumers about $6 million a year, according to a July study by the Federal Reserve Bank of Richmond. That is fairly modest, coming to about five cents each across 133 million American households.

The US lost ~$85 million minting pennies in 2024 because they cost more to make than they are worth. That's over a 10x savings, not a loss. 5 cents is also less than 0.00006% of median household income in 2024.

If people were actually that worried we'd have had laws about credit card transaction fees decades ago.

11 hours ago | parent | prev [-]
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mattnewton 13 hours ago | parent | prev [-]

They probably will, but that means a POS software update on a tight deadline.

wongarsu 12 hours ago | parent | next [-]

It's not like pennies just cease existing. You just can't buy them from the mint anymore.

I bet if you give customers an easy and free way to deposit change or to turn it into larger denominations you easily get enough pennies to delay ther update a couple years

mattnewton 11 hours ago | parent [-]

There are a lot of solutions, as everyone has mentioned. The problem is not hard, it’s “what color to paint the bikeshed” territory. But we’re still having to solve a problem on a tight deadline based on a tweeted proclamation with no federal legislature specifying exactly what solutions are allowed and what solutions conflict with existing law.

mrguyorama 6 hours ago | parent | prev [-]

Or, in reality, most commodity POS systems are actually able to support various countries and tax regimes, and is plenty ready to be configured a variety of ways and work perfectly fine in changing systems.

For example, the exact same physical hardware in American supermarkets for self checkout is also used in countries like Australia that have more coins than the US, and the machines literally do not have enough coin slots for every coin, so they just don't dispense certain coins in that place.

The POS market is rather robust and has been around the block for quite a while and has no problem managing quite literally arbitrary fees. Businesses in our city added a "cost of living" fee to all bills (just raise prices FFS, so dumb) and they didn't have to go out and buy new POS systems, because POS systems are very configurable.

Like, other industries that have been selling software products for decades are actually kind of good at their jobs and it's really just software as a service that reliably makes garbage. POS software can handle all sorts of things you probably don't even realize.

Go lookup all the functionality that Square advertises their POS systems have, and understand that they are new entrants to the market and do not have all the features that legacy vendors have built up over decades. The functionality has been so thoroughly figured out for so long and so straightforward, that a POS you bought in the 90s is likely still fit for service today.

Meanwhile, retailers are actually open to improving and modernizing their POS infrastructure regularly. They added those coupon printers to existing stacks and didn't have to do anything special because POS systems are absolute legends of interoperability. They use extremely standardized ports, including a special supplementary power version of USB, and are very tolerant to mix and match hardware. POS vendors even sell their hardware without forcing you to buy their software. The system is very open.

dec0dedab0de 9 hours ago | parent | prev | next [-]

I think they should just change the prices to make it work out after tax. It’s not that hard.

janalsncm 7 hours ago | parent | prev | next [-]

It’s the same issue for sub-penny rounding which happens without issue. It’s the same principle.

nofriend 13 hours ago | parent | prev | next [-]

just make the price a multiple of five cents

mattnewton 13 hours ago | parent [-]

State and local taxes make this infeasible

hollasch 13 hours ago | parent | next [-]

It's just American custom to exclude some taxes from the posted price. Many countries include all taxes in the price, something I've always wished we would do in America. After that, I'd love to see the elimination of the custom of always ending fuel cost per gallon in 9/10 of a cent.

smallerize 12 hours ago | parent | next [-]

Rounding sales tax on each item will often result in a different price than rounding once for the total. The store will collect the wrong amount of tax that way.

rtkwe 10 hours ago | parent | next [-]

They're saying include the sales tax in the price and set the item's price such that the sum of price + all taxes is an even increment of 5 cents. Gets a little tricky with fractional sales taxes but that's only a problem where POS systems strictly enforce 2 digit cents (not sure if that's the case).

estimator7292 12 hours ago | parent | prev [-]

Come on, this is not complicated. It's elementary algebra. You sum the rounded prices, then add a credit or surcharge of 2 cents to make the tax come out to a round number.

The tax is on the actual, real amount in your transaction subtotal. You are charged sales tax on the actual, real money you pay for the entire transaction. Then you multiply by 1.06 or whatever the tax rate is. That's how sales tax works.

If one rearranges the equations as we all learned in 5th grade, one can compute the amount that the subtotal must be to get a round number after tax. Then you charge or credit the customer the difference.

Alternatively, the retailer can simply pay the 4 cent difference in sales tax.

That's it. You either do algebra or just pay the difference. It is not complicated.

mattnewton 11 hours ago | parent [-]

You have to do this algebra per state and locale, and your reward is higher advertised prices than the shop next door. I think you both underestimate the problem and overestimate everyone involved in retail, especially the consumer.

I’m not saying it’s hard, I’m saying there is enough friction where it’s just not going to happen without legislation mandating it.

metabagel 11 hours ago | parent [-]

> it’s just not going to happen without legislation mandating it.

Obviously, and I don't think anyone said otherwise.

mattnewton 9 hours ago | parent [-]

Well, this is happening without legislation mandating it (that’s kinda the problem, our federal legislature doesn’t legislate much and is being largely ignored)

extraduder_ire 8 hours ago | parent | prev [-]

I'm in Ireland where EU law mandates posted prices include all taxes and charges, and fuel prices are still advertised with a .9 or .8 at the end.

They're selling a liquid, so even if it were all priced in whole cents you'd have to deal with fractional cents.

bogeholm 13 hours ago | parent | prev | next [-]

> State and local taxes make this infeasible

I don’t see why that would be the case? In my country, most prices with VAT (which is what you’re charged) are nice, round numbers, but not the price without VAT.

I suppose the stores set a target price, and then adjust it a bit to make the price + VAT a “nice” number.

Is there a reason that couldn’t be done to make all prices + VAT multiples of 5c?

jandrewrogers 12 hours ago | parent | next [-]

Several reasons, it really is a mess.

The local tax is set by multiple independent tax authorities that change their taxes independently, the tax you see is the aggregate of those independent authorities computed separately, which do not coordinate with each other.

Some of these taxes are conditional at point-of-sale, late-binding the taxes, such that different customers are subject to different rates across these tax authorities such that it is unlikely to round to exactly 5c.

It is widely illegal to not display the true price and taxes paid separately. Trying to retcon a price and taxes for rounding purposes that is also strictly consistent across customers so as to not violate the law is not trivial.

And on top of all of this, the Federal government does not have the authority to regulate the way States and various locales structure their sales taxes. It is a herding cats problem.

metabagel 11 hours ago | parent | next [-]

> It is widely illegal to not display the true price and taxes paid separately. Trying to retcon a price and taxes for rounding purposes that is also strictly consistent across customers so as to not violate the law is not trivial.

Having lived in Europe, this should be changed. It makes it infeasible to keep track of your total bill as you shop. The amount without tax should be printed on the receipt, if you care to reference it.

jandrewrogers 11 hours ago | parent [-]

The issue is that the legal change would have to be made independently across thousands of decentralized tax authorities. Herding that many cats is infeasible so it can't be part of a plausible solution. In some jurisdictions, the legal process required to make the changes have effectively insurmountable voting thresholds.

It may not be convenient but any realistic solution has to recognize the hard facts that shape the nature of problem.

pests 11 hours ago | parent | prev [-]

I've seen stores advertise "we pay your sales tax" like furniture outlets. Wouldn't this allow for legal priced items?

EasyMark 7 hours ago | parent | prev | next [-]

I think that's what has to happen here. Things will be priced in such a way that the final price is a multiple of 5. That's a pretty easy thing for an inventory pricing system can figure out. We already do it for fractions of a penny, not sure why it would be a big deal for a fraction of a nickel

rtkwe 10 hours ago | parent | prev [-]

Lots of localities total taxes aren't whole percentages so it potentially gets tricky making prices work in those systems such that you can make whole 5 cent tax included prices with whole cent base prices. Do most POS systems support arbitrary precision item prices?

saalweachter 13 hours ago | parent | prev | next [-]

Retailers don't, like, have to add sales tax on top of listed prices.

They just have to pay it.

syntheticnature 13 hours ago | parent | next [-]

No, it's illegal in many, looks like most states:

https://www.avalara.com/blog/en/north-america/2019/07/retail...

cestith 12 hours ago | parent [-]

IIRC, in New York it’s illegal to absorb sales tax on individual items because by law it’s a consumer tax collected by the business and explicitly not a tax on the business itself, but - and it’s a pretty big exception - anything sold as a bulk good can include the tax in the price. That includes things like liquid fuels, grains or candy by the scoop in the supermarket, loose sand/gravel/salt/whatever for outdoor use, and things like that. It’s been a long while since I had to set up an ecommerce site for New York though.

1718627440 9 hours ago | parent [-]

Who actually pays the tax depends on the Elasticity of the consumer and the business. Who the law says it should be collected from, is really irrelevant.

strbean 13 hours ago | parent | prev [-]

Now is our chance to switch to European style "you pay the price it says on the shelf"!

Galacta7 12 hours ago | parent | next [-]

That makes too much sense, which is why it won't happen. Though I'd be all for it.

Octoth0rpe 10 hours ago | parent [-]

More specifically, if Americans stopped have a daily reminder of how much is paid in taxes (which IMO isn't egregious by any stretch), one party would have a tougher time whipping anti-tax sentiment.

EasyMark 6 hours ago | parent | prev [-]

I don't think this will happen in our lifetimes. It's like not moving the day hour ahead/behind twice a year. A wholly stupid idea that will likely never be fixed on the federal level because of inertia.

tgsovlerkhgsel 11 hours ago | parent | prev | next [-]

Just show the price including tax. (half-sarcastic, because obviously that would be an unpopular change for sellers because it makes the visible number go up, but it would solve two problmes...)

They could still set the post-tax price to something that results in round numbers, at downside of the pre-tax price having more decimals.

axiolite 11 hours ago | parent | next [-]

> Just show the price including tax.

With a tax rate as precise as 1000ths of a percent in many jurisdictions*, you'd need extreme precision on the price tag (e.g. $11.798625), OR you need to substantially overcharge for tax (rounding up the tax to the penny or nickel on each individual item, instead of on the total of ALL items).

And sales tax rates can even be different from ONE CITY BLOCK TO THE NEXT.

* Arizona: 10.725% Hawaii: 4.712% Minnesota: 7.875% etc. https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat...

1718627440 9 hours ago | parent [-]

No, you still round the number, that goes on the price tag and adjust the other.

EasyMark 6 hours ago | parent | prev [-]

Since that is a state thing, it can never happen and is likely outside the power of Congress to enforce, especially with our current activist federal supreme court.

EasyMark 7 hours ago | parent | prev | next [-]

Well I'm guessing that's about to change isn't it? unless you always pay by card, and I don't think that is the intent of this law. I assume they will always just round up and make citizens suck it up, because laws general favor the business and corporate classes, at least the recent ones.

dragonwriter 11 hours ago | parent | prev | next [-]

So, lobby for changes to the structure of those taxes so that's not a problem. Tthe simple solution is changing them from surcharges adding a percent onto posted prices to making them a percentage taken out of the posted price; so that coin availability is only an issue in the improbable event that you are paying your sales tax bill in cash.

Of course, retailers don't want tax-inclusive posted prices, but... ::shrug::

13 hours ago | parent | prev | next [-]
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drdec 11 hours ago | parent | prev | next [-]

It's the same way with the penny.

Tax on a 0.99 item isn't coming out to an exact penny multiple.

So stores are already dealing with this situation

mattnewton 3 hours ago | parent [-]

Yes, stores are dealing with this alongside a whole legal framework today. They would not have the benefit of that for any changes without pennies, and in a few cases may open themselves to legal liability by underpaying state sales tax, overcharging snap recipients, etc etc. We don’t know because this was just a tweet decree by the executive while the legislature has been paralyzed.

nilamo 12 hours ago | parent | prev | next [-]

Oh no, a made up problem that's easily solved by changing the price slightly in any direction, whatever will we do.

janalsncm 7 hours ago | parent | prev | next [-]

You can price as a multiple of nickels and round the tax separately. It’s the same thing as with sub-penny rounding.

estimator7292 12 hours ago | parent | prev [-]

With some 5th grade algebra, one can adjust the total of a transaction to result in a round number after taxes.

Besides that, the law (at least where I live) is that the tax must be paid, but it does not specify by whom. It's completely feasible for a retailer to pay the 2 cent difference in the tax and charge the customer a round number.

Is this really the state of American education where a percentage calculation makes a very simple situation literally impossible? You can think of no other way to overcome the complicated calculations of checks notes x times 1.06?

axiolite 10 hours ago | parent [-]

Even with just a 6% tax, you end up with prices that need 4 digits of precision after the decimal (e.g.: $11.6494). That issue extends over a wide range of pre-tax/input prices, so one would have to DRASTICALLY change the prices so that the price including 6% tax rounds to even a penny, let alone a nickel.

While you could calculate a price that (after tax) would round a single item to the nearest nickel, it's completely IMPOSSIBLE to do so with unknown numbers of multiple items.

In addition, tax rates in the real world aren't just single-digit percentages. They have precision of 1/1000th of a percent, making such a calculation much more challenging.

Arizona: 10.725% Hawaii: 4.712% Minnesota: 7.875% etc.

https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat...

And sales tax rates can be different from ONE CITY BLOCK TO THE NEXT, so a company with more than one location would find it IMPOSSIBLE to advertise their prices at all.

a_c_s 11 hours ago | parent | prev [-]

Right, but getting fined in this situation means the government is incompetent. They should just tell retailers the "right" thing to do and not fine any retailers that follow the guidelines.

The idea that this is complicated legally is an example of why so many Americans are so frustrated with their government. Common sense should rule the day, not mindless legalism.

rtkwe 10 hours ago | parent [-]

The issue with "common sense" is there's no way to run anything based on it because you'll get 100 different ideas of what that means in any situation. 90% of customers would be fine with the rounding to the nearest 5 cent plan but there's a streak of stubborn people who'd refuse to accept it and waste some legal time trying to get proven 'right' so the stores want legal clarity so they don't have to deal with that.