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June 2007

Dual pricing, cash registers, petrol pumps and vending machines. Geert Temmerman National Bank of Belgium. June 2007. Content. "Dual pricing" ??? Changes of prices at change-over Invoices and cash register receipts Cash registers Petrol pumps and metrological devices

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June 2007

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  1. Dual pricing, cash registers, petrol pumps and vending machines Geert Temmerman National Bank of Belgium June 2007

  2. Content • "Dual pricing" ??? • Changes of prices at change-over • Invoices and cash register receipts • Cash registers • Petrol pumps and metrological devices • Vending machines, slot machines, ...

  3. "Dual Pricing" ??? • Until 31/12/2001: price in BEF compulsory and prevailing • From 01/01/2002: price in EUR compulsory and prevailing • Dual pricing recommended from 01/01/1999 until 28/11/2002(Minister of Economic Affairs got by law competence to impose dual pricing but didn't have to resort to this) • In case of dual pricing: both prices mathematically identical and rounded at 2nd decimal place(inspections by Ministry of Economic Affairs and fines in case of violation)

  4. Changes of prices at change-over • No prohibition of rounding off (up or down) prices when converting • Communication towards retail businesses: • rounding up systematically = pricing out of the market • in case of risk of general price-rises: Minister of Economic Affairs could have resort to old law allowing price control decree when necessary • From hindsight: • some retail sectors (pubs, ...) tended to abuse, but in general retail remained disciplined without the Minister having to intervene • additional real inflation remained low although preceived inflation was higher

  5. Invoices and cash register receipts • From 01/01/1999: free choice between EUR and BEF • Recommendation to mention at least total to be paid in second currency • Currency of document didn't influence choice currency of payment

  6. Cash registers • 2 types: • PC-POS-registers (= computers) and recent mechanical (not computerized) cash registers: no problem • 2 decimal places possible • often possibility to mention mathematically converted value in several currencies, at least of total to be paid • older systems: to be replaced • No subsidies • Tax-law: assets (software, cash registers, ...) becoming obsolete because of change-over but not yet fully depreciated in accounting, could be written-off at once

  7. Petrol pumps and metrological devices • Preliminary remark: unit prices could have more than 2 decimal places to preserve precision: • e.g. 1 screw: 0.35 BEF  0.0087 EUR • 1 megajoule gas: 0.22911 BEF  0.0056795 EUR • Petrol pumps: • litre prices of petroleum product in BEF had 2 decimal places, but for products sold at pumps the 2nd was always 0 • litre prices in EUR have 4 decimal places, but 3 at pumps • e.g. 1 litre Super +95: 38.1 BEF  0.944 EUR

  8. Petrol pumps and metrological devices • Law of 03/07/2000: • petrol pump's counters could be converted to € from 01/07/2001 on (3 decimals instead of 1) • prices in BEF had to be displayed in petrol station (placards, posters, ...) • Similar regime for taximeters, balances with price calculation, ...

  9. Vending machines, slot machines, ... • Vending machine is assembly of: • dispenser • cash-detector • possibly money-changer (to return the change) • software (not in older purely mechanical machines) • Cash-detectors and money-changers often constructed by other manufacturers then vending machine • To be replaced: cash-detectors, money-changers, software

  10. Vending machines, slot machines, ... • Also to be replaced: tubes to store coins • additional problem: 8 EUR-coins while only 4 BEF-coins, so not enough space for 8 tubes • solution adopted: • input: selection out of existing €-coins • output of change: selection • normally not 0.50 since 0.20 and 0.10 can compose 0.50 • normally not 0.01 and 0.02 • no need for output of highest denomination for input (€2) • Older machines to be entirely replaced

  11. Vending machines, slot machines, ... • More recent machines: adaptable but often adaptation in steps: • 1st step: accepting couple of BEF-coins and couple of EUR-coins, no change • 2nd step: accepting only EUR-coins, change in EUR • Some vending machines use tokens to be taken from another vending machine

  12. Vending machines, slot machines, ... • Specific problem: launderettes • often old vending machines to deliver tokens for the washers • industry with extremely low profit margin • Many local authorities replaced parking meters by parking ticket machines accepting payment by coins and electronic purse payments (chip card)

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