I remember visiting Canada shortly after that had started there. Do they round up and down? It seems like it was always rounded in the customer’s favor, but I don’t remember. With this approach here, it could penalize customers for using cash, even if it’s only a few cents at a time.

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Just standard rounding. From my experience in retail it's a wash money wise. The tills reported the variance due to this and it was minor pocket change daily, positive some days, negative on others. 70% pay with tap anyways.
It's the same rounding as written there. Digital transactions are still to the penny. The customer theoretically could watch the till and choose cash when it would work in their favour. Haha!