Division of Trade and Consumer Protection / Cash Rounding Guidance
Cash rounding is applicable only to cash transactions where change is required after the total amount due (price plus tax) has been calculated and cannot be provided.
While businesses can choose their rounding methodology, DATCP suggests rounding down to minimize consumer harm and ensure fairness and consistency:
- $0.01, $0.02 , $0.03 or $0.04 round down to $0.00.
- $0.06, $0.07, $0.08 or $0.09 round down to $0.05.
DATCP will use discretion enforcing state regulations related to the Unfair Sales Act; Price Accuracy; and Untrue, False, or Misleading Representations complaints and/or inspections to ensure that all consumers are treated fairly. Businesses should be conscious of the fact that there is a greater likelihood for consumer harm with a business applying a rounding up practice and should take care to avoid undue consumer burden. DATCP will evaluate all complaints and inspections related to any rounding practices based on the facts on a case-by-case basis.
Regardless of the methodology a business chooses to adopt for cash rounding, DATCP encourages businesses to post a clear and informative flyer conspicuously at entrances and any point of sale communicating any rounding policy.
Also see the additional guidance issued by the Wisconsin Department of Revenue on sales and use tax.