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What is a Military Payment Certificate?

Is this like a check that Military people get, do they still use them? Why do they have separate money?

Military Payment Certificate

Military Payment Certificates, or MPC, were used from the end of World War II until the end of the Vietnam War, between the years 1946 and 1973. MPC's utilized layers of line lithography to create colorful banknotes that could be produced cheaply. Fifteen series of MPC's were created but only 13 series were issued.


History of MPC
Military Payment Certificates (MPC) evolved from Allied Military Currency as a response to the large amounts of US Dollars circulating in post-World War II Europe due to American servicemen. The local citizens did not trust local currencies as the fate of their governments was unclear. Therefore preferring a stable currency, dollars, they often accepted payment in dollars for less than the accepted conversion rates. Obviously dollars became more favorable, inflating the local currencies and thwarting plans to stabilize the economies. Contributing to this problem was the fact that though troops were being paid in the local currency they could convert an unlimited amount to dollars at the government set conversion rate, which was much more favorable to the GIs than the market rate. From this a black market developed where the servicemen could utilize the favorable exchange rate.

To combat this the US military devised the MPC program. MPC's were paper money denominated in US Dollars in amounts of 5 cents, 10 cents, 25 cents, 50 cents, 1 dollar, 5 dollars, 10 dollars, and starting in 1968 20 dollars. MPC's were fully convertible to US dollars upon leaving the combat zone ( a designated MPC zone) and convertible to local currencies when going on leave (but not vice-versa), and were illegal for unauthorized personnel to possess, thus, in theory, eliminating US dollars from local economies. Although actual greenbacks were not circulating, many local merchants accepted MPC on par with US dollars, as they knew they could use them on the black market. This was especially evident during the Vietnam War when the MPC program was at its zenith. To prevent MPC from being used as a primary currency in the host country, thereby destroying the local currency value and economy, MPC banknote style would change. Many veterans can recount a conversion day or C-Day.

C-day in Vietnam was always classified, never pre-announced. On C-day, soldiers would be restriced to base, preventing GIs from loading up on old MPC from local bars, brothels, bargirls and other black market people and unable to help these Vietnamese convert to the newer style MPC. Vietnamese were not allowed to convert and frequently lost so much old, worthless MPC, they would "arrange" to have the nearest U.S. base rocketed the next night.

To illustrate the Vietnam war MPC cycle, in mid 1970, a GI would have his family mail him a U.S. hundred dollar bill, take it "downtown" and convert it to 180 dollars MPC, then change MPC to S.Vietnamese piasters at double the legal rate. He then could have a fun day shopping, bar hopping, or a full service massage, paying in very low cost piasters.

To continue the MPC cycle, that 100 dollar note would find its way to high level Vietnamese government officials, especially the corrupt ones, who had access to out of country travel, where the U.S currency could be deposited safely (Bangkok,Taipei, or Hong Kong). Rumors also suggested that this hard currency (u.s. dollars), would find its way to Hanoi, then to Europe.

There were 13 series of MPC issued between 1946 and 1973, with varied designs often compared to Monopoly (game) money due to their colors. After the Vietnam War MPC was never again issued, and lay dormant until the late 90's when it was replaced by a Stored Value Card system.

2007-07-05 17:12:32 by The Deal | Posted in Hobbies & Crafts

When we get out of the military, is there a payment plan for Military Star Card or must it payed in a lumpsum?

My husband is wanting to get out of the military and we have a balance on our Star Card. Is there a repayment plan or does it have to be paid off in a lump sum payment?

You can pay it off over time. However, that being said... I find it incredibly sad how people can get out of the Army and be in debt. This should be nearly impossible.

Try to fix your situation and leave the military with a clean slate.

2008-04-14 02:03:14 by Amber M | Posted in Military

Military Payment after 2 years of service?

My grandfather heard that he could collect some kind of pension because he served in the military for 2 years back in the 60's. He is 69 years old now. Is this true? His friend swears he receives a check for about $170. a month because of this account his daughter found. Any ideas? Thanks!

most likely he is getting money for a disability.

2008-07-04 19:55:35 by Chelsea S | Posted in Military

How do I set up my mortgage payment on a military allotment?

I am active duty and would like to have my mortgage payment taken directly from my paycheck...one less bill to have to pay. Can I do that online or do I need finance to do it? Also, what information would I need about my loan or from my lender to set it up...acct number obviously, but anything else?

I'm an ex FINANCE and ACCOUNTING OFFICER and don't recommend ALLOTMENT for MORTGAGE purely bec your monthly MORTGAGE PAYMENT AMOUNT can vary in later years as result of changes from PROPERTY TAX INCREASES and HOMEOWNER INSURANCE PREMIUMs going up. I have owned 3 homes and Your Mortgage company often sends letter updating you on changes in escrow and when your MORTGAGE PAYMENT will say increase. Well, let's say you didn't notify Finance & Accounting and now they send incorrect lower than required mortgage payment and HOPEFULLY you see the problem when you find out problem 60 days down the road and it reflects on your now bad credit report.

There is other solutions: My wife and I simply have set up separate joint Credit Union Account (recommend Money Market Savings Acct that has highest interest rate) and make replenishment deposits and this MMSA account strictly pays our monthly mortgage. Sorry I'm lost how we set it up but believe you must contact your MORTGAGE COMPANY for automatic payments bec we also have the ELECTRIC BILL and WATER BILL be autimatically deducted from a different joint checking account...

Hope the Above Info Helps & Best of Luck!

2008-03-13 10:13:22 by bcyouletme | Posted in Personal Finance

Payment instead of Turkish military service?

My boyfriend has gotten a job offer in Malaysia but he has yet to complete his Turkish military service. As he supports his family financially it's too good an opportunity to pass up. Is there any way we can make a one off payment rather than him going into the service?

Thanks for all your advice. If you know of any further sources, please do share.

If he has been working abroad for at least three years, he can do a basic training of three weeks instead of completing a full-term military service, which is only symbolic.

People who are under the age of 38 have to pay €5.112, but not immediately. They can make the payment until 31 December of the year they turns 38. However, if they are older than 38, they have to pay a total of €7.668 when applying for the registration.

2008-06-29 14:21:52 by Angel | Posted in Military

what is the lengh and width of a us military payment certificate ?

Are you seeking to indulge in forgery?

2006-02-12 09:35:45 by ozzy_five | Posted in Other - Business & Finance

I have a 5 cent series 681 military payment certificate good condition. How do I find out more about it.?

Put it on Ebay

2006-05-29 11:03:13 by justweet | Posted in Military