Dual pricing, cash registers,
petrol pumps and
vending
machines
Geert Temmerman
National Bank of Belgium
June 2007
Content
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"Dual pricing" ???
Changes of prices at change-over
Invoices and cash register receipts
Cash registers
Petrol pumps and metrological devices
Vending machines, slot machines, ...
"Dual Pricing" ???
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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)
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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)
Changes of prices at change-over
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No prohibition of rounding off (up or down)
prices when converting
Communication towards retail businesses:
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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:
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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
Invoices and cash register receipts
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From 01/01/1999: free choice between EUR
and BEF
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Recommendation to mention at least total to be
paid in second currency
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Currency of document didn't influence choice
currency of payment
Cash registers
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2 types:
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PC-POS-registers (= computers) and recent mechanical (not
computerized) cash registers: no problem
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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
Petrol pumps and metrological devices
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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
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Petrol pumps:
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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
Petrol pumps and metrological devices
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Law of 03/07/2000:
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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, ...
Vending machines, slot machines, ...
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Vending machine is assembly of:
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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, moneychangers, software
Vending machines, slot machines, ...
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Also to be replaced: tubes to store coins
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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
Vending machines, slot machines, ...
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More recent machines: adaptable but often
adaptation in steps:
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1st step: accepting couple of BEF-coins and couple of EURcoins, no change
2nd step: accepting only EUR-coins, change in EUR
Some vending machines use tokens to be taken
from another vending machine
Vending machines, slot machines, ...
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Specific problem: launderettes
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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)