Nele Peil, head of the Estonian Traders Association, said: "The change will make paying in cash quicker and simpler and will in the long-run cut cash-handling costs for businesses, but it will need them to make a one-off effort first, as their register systems will have to be updated and their staff trained, and they will need to be ready to explain the change to their customers when it is introduced."

The rounding off rule will start to apply in all points of sale in Estonia from January 1 next year, and it will see the total price of purchases paid for in cash rounded, either up or down, to the nearest five cents.

Retailers will also need to be ready to explain the change to their customers, Peil said.

Peil noted that the association has already informed its members and the largest cash register system operators in Estonia about the need to make the preparations, stressing they will have to update their software in plenty of time this year.

Ultimately each merchant is responsible for their own preparedness for the switchover, Peil added.

As well as updating their register systems and accounting software, retailers will also be required to ensure that they display information about the rounding rules clearly, for example on the wall of the store, for example or on a screen at the checkout.

The rounding rule for one and two cents from January 2025 refers to cash-only purchases, card purchases will not be affected.

It applies to purchases of multiple goods, and the selection's cost will be rounded up or down to the nearest five cents, meaning one- and two-cent coins will no longer be given out as change – customers may use them for making a purchase however.

Final register prices ending in one or two cents will be rounded down to zero, while those ending in six or seven cents will be rounded down to five.

Similarly, prices ending in three or four cents, or eight or nine cents, will be rounded upwards (to five and zero respectively).

The change will not affect the price of a good, which will remain as advertised, while it is up to a purchaser how they wish to pay; retailers will not have the right to refuse a valid means of payment, while retailers will also retain the right to charge any asking price they wish for an item.

Imre Reinson, CEO of software company Nixor, said the changes needed would be small, and most users would be able to set the parameters for the rounding rule in the software they are currently already using.

Even if this is not the case, the need for software development would still be small, Reinson added.

"Each merchant must check for themselves how prepared their business software provider is for the change, and how they can take the necessary steps together. They should also consider how their financial accounting will handle the sums generated by the rounding, whether they need to change how they separate and keep cash in the register, and how their sales staff and cashiers will engaged with customers taken by surprise by the change", Reinson explained.

The Bank of Estonia states that it is important for the rounded final price due for the goods or services purchased to be clearly visible for customers paying in cash, so that they can easily distinguish it from the sales price and the unit prices of the goods, or the final price of services.

Six other eurozone countries have already introduced rounding off rules as outlined above, including neighboring Finland.

Finnish supermarket chain Prisma, for instance, also operates in Estonia, and has had to adapt to the change already in its home country.

Country manager for Estonia at Prisma Teemu Kilpiä said that customers and cashiers in Finland have by now gotten accustomed to using the rounding rule, while paying at cash registers has been streamlined.

Making preparations now in order to be ready in good time for the new rules from the start of next year is wise, so that the transition can happen smoothly, Kilpiä added.

The aim of the Bank of Estonia and the government is ultimately aiming to phase out the use of one- and two-cent Euro coins.

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