Rounding Prices In Louisiana Could Confuse Cash Customers

(KMDL-FM) I think the world of retail would be a lot simpler if stores posted the actual prices of items on the shelf. I mean the total cost, taxes, and everything. It would make budgeting simpler, and it would alleviate any fears that those of us who travel with limited cash reserves on hand often have in this "new era" of rounding prices upward at checkout.

READ MORE: Is It Against the Law to Throw Pennies Away? 

If you weren't aware, it is now legal for retailers in Louisiana to adjust the prices of goods and services accordingly when a customer chooses to complete a transaction using cash. You might recall that the penny is no longer a thing, and many retailers have had issues with issuing exact change because of the penny shortage and eventual demise of the coin.

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How Do You Pay For Things in Cash When You Don't Have Exact Change?

Earlier this year, the state of Louisiana adjusted its guidelines concerning cash transactions because of the penny conundrum. The new guidelines suggested that all cash transactions conducted in the state be rounded to the nearest "nickel".

That means the final price for the goods, service, or item purchased would either have a total amount ending in a "0" or a total amount ending in a "5". This only applies to transactions that will be settled in cash. If you pay with a credit card or a debit card, you're going to be charged down to the exact cent.

When Does the Price Round Up and When Does the Price Round Down?

In Louisiana, prices that end in 1,2,6, or 7 cents will round down. Prices that end in 3,4,8, or 9 cents will round up. While that might seem simple enough, it could be problematic for cashiers who "don't math so good" or customers who "math even worse".

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The simple suggestion would be to ask retailers to adjust their pricing models to always calculate sales tax and total prices to settle on an amount that ends in "5" or "0". But we all know that some unscrupulous retailers would always opt to "round up" to a higher price and then blame it on the penny conundrum.

Eventually, we will simply move away from cash altogether. We'll just be a nation of card-swiping and app-tapping consumers...until a hurricane hits and the power goes out. It's going to be hard to "round up anything," especially during a scenario like that, and guess what? That's eventually going to happen; get your popcorn ready when it does.