The E-Sylum:  Volume 9, Number 23, June 4, 2006, Article 28

MARTIN PURDY ON TRANSACTION PRICE

Last week, responding to Martin Purdy in their discussion of
New Zealand coinage reform, Dick Johnson wrote: "He states
"Final bills will be made out to the last cent, as above[before],
but if you pay in cash, the final total will be rounded up or
down to the nearest ten cents, as appropriate, just as they
are to the nearest 5 cents at the moment." THAT is the
definition of "transaction price" - after rounding up or
down."

Martin Purdy writes: "I stand by what I said.  Here is Dick's
original paragraph for reference, with a further comment from
me to follow:

"The dime is now the lowest coin in circulation. All prices
are now quoted in multiples of 10 cents while the cent remains
a "money of account." Contracts and quantity sales and purchases
can be quoted in the old cents ­ or even fractions parts of a
cent! ­ but the "transaction price," when the final check is
written, it is in a multiple of a dime."

Once again, no.  The only time you will pay in multiples of
10c is if you pay in cash.  If you use a credit or debit card,
or write a cheque, you pay to the last cent, not the last ten
cents.  In exactly the same way as we have been paying down to
the last cent by all means other than cash since 1990, even
though there have been no circulating coins smaller than 5c
during this time.  And the reference to "fractions of a cent"
is about 35 years out of date, as I noted."

  Wayne Homren, Editor

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