Why is my bill rounded up? Diner questions practice after paying extra 4 cents at Little India restaurant
A diner has questioned why some restaurants round up customers’ bills even when they are paying electronically.
Stomper Geetha contacted Stomp after noticing that her takeaway order at Ananda Bhavan Restaurant in Little India on July 20 was rounded up by four cents.
According to the receipt she shared, the food came to $19.10. After a four per cent takeaway charge of 76 cents, the total was $19.86.
However, the final amount charged was $19.90 after a four-cent rounding adjustment.
Geetha said she has encountered similar experiences at several restaurants over the years.
“Many Singapore restaurants round up customers’ bills to the next higher amount, even when the difference is only a few cents,” she said.
“While the amount may seem small, it adds up over time and affects many customers.”
She added that there was little point raising the issue with cashiers.
“Whenever I asked about it, they commented that their cash register is programmed that way and they could not do anything about it,” she said.
“From my experience, I learned that there is no point in bringing up the issue to the cashier, who is an employee of the restaurant.”
Instead, Geetha hopes the relevant authorities will look into the practice.
“If a business wishes to round off prices, it should be made clear to customers before payment, and the rounding should be fair and transparent,” she said.
“In this digital age, where most payments are made electronically, charging the exact amount should not be difficult.
“I hope the relevant authorities can ensure businesses charge customers only the actual price shown on the bill, unless customers have been clearly informed and have agreed to any rounding policy.”
Restaurant apologises for lack of clarity
In response to a Stomp query, Ananda Bhavan Restaurant said on July 23 that its current billing system applies a rounding adjustment to the final amount after the takeaway charge is added.
According to the restaurant, totals ending in one to five cents are rounded down to the nearest 10 cents, while those ending in six to nine cents are rounded up to the nearest 10 cents.
It said the practice dates back to a time when cash transactions were the predominant mode of payment.
“We acknowledge, however, that we did not clearly communicate this to our customers, and we sincerely apologise for the oversight,” the restaurant said.
“We appreciate the customer’s feedback and are taking this opportunity to improve.”
It added that it will put up notices at its counters explaining how takeaway charges and rounding are applied, and is reviewing its current rounding process to improve transparency.
What does IRAS say?
The Inland Revenue Authority of Singapore (IRAS) states that businesses may round the total amount payable, including goods and services tax (GST), to the nearest five cents to facilitate cash payments.
IRAS says whether a bill is rounded up or down is a business decision, but the method chosen should be applied consistently.
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