Feeling short-changed: German town turns back on 1 and 2 euro cents

A network of shops and businesses in western Germany are hoping to clear their tills of small change as part of an initiative starting Monday to phase out 1

Participating retailers in the town of Kleve, situated near the Dutch border, will begin rounding up or down the price of purchases to the nearest 5 cent, in the first case of its kind in Germany, according to the German Trade Association.

Transactions requiring the euro currency's two smallest denominations have simply become too expensive, said Ute Marks, head of Kleve City Network. Bank fees for coin rolls can be a significant cost factor for small businesses.

Over 800 businesses have joined the initiative in the town of 50,000 people, following in the footsteps of eurozone neighbour the Netherlands, where rounding up and down prices has been common practice for years.

Prices will only be changed with the consent of the customer and the new measures do not apply to card payments.

Last update: Sun, 21/08/2016 - 12:57
Author: 

More from Business

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...

General Motors announces 1-billion-dollar investment in US workforce

General Motors will join other carmakers in opting to invest and hire inside the United States, the company...

Tobacco giant BAT agrees to 49-billion-dollar takeover of US rival

British American Tobacco Plc on Tuesday said it has finalized a deal to acquire 57.8 per cent of shares of US rival...

IMF raises China growth forecast, but warns of sharper slowdown

China's economy will expand by 6.5 per cent this year, the International Monetary Fund said on Monday, as it warned...

Trump's warning to German carmakers hits shares

Shares in German carmakers tumbled on Monday after incoming US president Donald Trump threatened the industry with...