Nation

Diner Outraged After Restaurant Rounds Up Credit Card Bill – Is This Standard Practice?

2024-10-02

Author: Sarah

SINGAPORE

In a recent incident that has sparked outrage online, a diner named Gillian Chia expressed her disbelief after discovering an unexpected charge on her restaurant bill. On a visit to Chopstix & Rice in Suntec City Mall, she was puzzled by the restaurant's decision to round off her total bill even though she was paying with a credit card.

Chia shared her experience on the COMPLAINT SINGAPORE Facebook page, stating, “It’s ridiculous for a restaurant to ROUND UP the bill. So I paid additional for no actual food or service but for rounding.”

Her itemized bill revealed she ordered a set meal for two at S$39.90, an ayam lemak for S$10.90, and beef rendang for S$15.90. Following the mandatory 10% service charge and a 9% Goods and Services Tax (GST), her total should have been S$79.97. Instead, she was charged S$80 due to an added “Round Amount” fee of S$0.03.

Chia pointed out that since she used a credit card—which allows for precise payment down to the cent—this rounding policy seemed unjustified to many who read her post.

Commenters quickly rallied around Chia, asserting that if payments are made with cards, the total should be the exact amount without any arbitrary rounding. “If a customer pays by card, it should be the exact amount,” one user argued, while another remarked, “7 cents is nearer to 5 cents, so it should be rounding down instead of up. Not logical.”

The Inland Revenue Authority of Singapore (IRAS) explained that some businesses have adopted rounding practices for cash transactions to accommodate the discontinuation of one-cent coins. However, they added that whether to round up or down is ultimately a business decision. Critics of this practice questioned how much extra revenue establishments might be pocketing through such rounding tactics.

Interestingly, commenters also noted that in various countries, rounded-up amounts are often donated to charity or added as tips for servers, allowing diners to have some say in the process. Chia’s case has reignited discussions about transparency and fairness in billing practices, with many calling for a review of how restaurants handle transactions, especially when it comes to credit card payments.

As discussions continue and more diners share their experiences, the Independent Singapore has reached out to both Gillian Chia and Chopstix & Rice for their responses, hoping for clarity on this controversial billing method.

Stay tuned for updates as this story unfolds!