Germany and credit cards

[Dale Shires 0]

What do the Germans have against credit cards? I’ve travelled all over the world with work (including Columbia and Vietnam) and used my MasterCard almost everywhere. No Problems.

 

Come to Germany and what a palaver. OBI, Expert Klein, Saturn, Hagebaumarkt, Lidl but to name a few, all refuse to take my cards, cash only, it seams.

 

No wonder the German economy is a mess, you can’t buy anything.

 

Anybody know why this is?

[Satman 5]

Our OBI, Hagenbaumarkt and saturn all take CCs..

 

Just take cash with you.. It solves the problem.

 

Dont forget that outlets that accept CCs also make less profit.

 

G

[Guest]

 

No wonder the German economy is a mess, you can’t buy anything.

 

Anybody know why this is?

The German economy is not in a mess solely because the acceptance of credit cards is less popular here.

Its been discussed a million times before - German traders are generally not prepared to pay about 5% in transaction costs to the CC company for each individual sale.

 

Besides, the Maestro/EC card managed to get its grip on the market here - its use is very popular because its cashless cash that gets deducted from your bank account almost right away. If you dont have enough funds on your account, the card does not get cleared at the point of sale. Credit cards can run up huge bills if you are not very careful...

 

MaestroCard from MasterCard

[Hannah 8]

 

Our OBI, Hagenbaumarkt and saturn all take CCs..

ours too as long as it's a "common" one like Master/Euro or Visa

[Harry 16]

I think there's two reasons why. First of all CC's are popular in countries where banking systems run off paper - e.g. USA & UK. It's inconvenient & expensive both for the shop & the customer to keep writing out cheques so they used CC's to get around the problem. As Maisflocke said in Germany you could always use a debit card.

 

The other reason is that Germans (at least those over 35-ish) just don't like borrowing money. They prefer to use debit card than CC. This is one of the reasons why the German economy is in trouble - they are sticking around 12% of their salary under the mattress instead of spending it & boosting the consumer economy.

[Ami in Berlin 39]

 

Our OBI, Hagenbaumarkt and saturn all take CCs..

 

Just take cash with you.. It solves the problem.

 

Dont forget that outlets that accept CCs also make less profit.

 

G

I was at Baur this weekend. At least the one near me does not take credit cards, which seems astonishing for a DIY store. I don't want to take a sackful of cash to the shop.

 

 

The other reason is that Germans (at least those over 35-ish) just don't like borrowing money. They prefer to use debit card than CC. This is one of the reasons why the German economy is in trouble - they are sticking around 12% of their salary under the mattress instead of spending it & boosting the consumer economy.

But German credit cards function in much the same way as a debit card. My German Visa is linked to an account, and at the end of the month the balance is deducted from my account. It works the same as a EC card, except instead of being immediate, all the money is taken at the end of the month. This is not borrowing money the way that American credit cards are, where I can choose how much I want to pay back each month.

[Dale Shires 0]

Mmmmm, maybe they just don’t like the way I look. I’ve tried in different stores but still no luck. It’s not like there’s anything wrong with the cards, I work all over Europe and never been turned down in ANY country other than Germany.

 

I was jesting about the economy but it is frustrating when I want to buy a 1000 Euro TV here and then decide against it and buy it back in the UK (or France, or Switzerland) where I can use a credit card.

[andrea 19]

 

The other reason is that Germans (at least those over 35-ish) just don't like borrowing money.

When I was working with my ex-husband in Germany in the I was quite shocked at the amount of Germans in debt. He used to do what is called 'Beamtendarlehens', which was loans but only for Beamtes or people that had been in their job for more than 15 years, and he made an extremely healthly living from this. And it wasn't small piddly amounts, most loans were for over 30,000 euros and when sifting through the applications I was astonished at the amount of debt some of them had, various store cards, loads of small loans, most of them didn't even have much to show for their debts, didn't own a house or a decent car as such. And these people took these loans and spread over 20-25 years paying only the interest together with an insurance policy which then paid of the loan at the end, same lines as an endowment mortgage in the UK.

[kennya 0]

To be honest, I'm glad that it is harder to get credit or use credit cards here in Germany, I prefer Debit cards. I am self employed and believe me there are times when I am desperate to get my hands on some money but when I have those times I just work longer and harder to get the money. I'm happy to say I have live in Germany for 6 years debt free. Not like in the UK where Credit cards are thrown at you and they keep raising your credit limit encouraging you to get deeper and deeper into debt. And now once you are in debt they have made it so easy to get out by just declaring bankruptcy, how long will the UK economy last if everybody chooses this path.

 

just my tuppence worth. :)

[mick 1]

Maestro/EC cards do have the advantage that your account is almost always up-to-date. With a credit / overdraft limit of say 1000 € you still have space to buy, the interest is still very high though.

 

All in all I think it works well in Germany and in Britain I can still get cash from ATMs. If the Maesto link is anything to go by it could catch on elsewhere in Europe.

[Hannah 8]

 

This is one of the reasons why the German economy is in trouble - they are sticking around 12% of their salary under the mattress instead of spending it & boosting the consumer economy.

I am one of those then probably

I don't have it under the mattress, but some money on a saving account. I know ppl, who have to take a credit for everything, when the car breaks down or the telly...

Oh well, in case I'll die before I spent the money, then somebody else will be happy with it, enjoy it tuff shit for me then.

You are right, it could be a german thing and bad for the economy, but I live better with the feeling to have something in "the back", than to live on credit my whole life. I am glad that my bf doesnt neither. I can go over my giro limit 3xwage and guess this is way enough and I try not to do it.

If we are short on money, we can't buy special things or have to wait.

[Hannah 8]

 

This is not borrowing money the way that American credit cards are, where I can choose how much I want to pay back each month.

I guess we had this topic already somewhere else. If ppl get along and are careful it seems ok to me. But I know alot of especially Americans who get in real trouble this way. And the less you pay back, the more expensive it gets, doesnt it? So in the end you pay 1100 Dollars for something which is only 1000 for example?

[Purple Muffin 265]

I am completely with Hannah on this one I would hate to have to pay anything back so anything I need desperately comes out of my savings or I cannot have it.

 

I am neither German nor over 35 but I also do not like taking credit for anything.

 

I do have credit cards but only ever use them for buying this on the internet such as flights or when I am abroad and my EC card does not seem to be working. I do not see the point in credit cards otherwise if I want to make a big purchase I save up and store the money in my emergency handbag fund :P

[Hannah 8]

Harry, sorry but then I guess your theory is just good for the bin ;)

[jumpsuit27 8]

Yup, I'm with Hannah on this one too.

 

I've got 2 credit cards - one is a free one from Karstadt/Happy Digits, the other one was on offer at Lidl recently (you can still get it directly from CC-Bank actually). The latter one cost 10 euros to buy, gave me 20 euros Startguthaben and gives you 5% off your petrol bills if you use it. Sounds good to me!

 

So I get the benefit of the credit card but not the hassle with debt etc.

[Dale Shires 0]

I think the original topic is somewhat drifting, it’s not about living on credit, running up debt and so on but simply being able to buy something with ease.

 

When the CC bill arrives it gets paid straight away. I have the money. It’s just the German shops wont let me spend it (unless it’s in Cash) and I don’t have a German Account or EC card.

 

Only Numptys run up a credit card bill knowing they have no way to pay it back.

[Hannah 8]

yep sorry Dale, but they always get me (a german) away from the topic by blaming "the Germans" for this and that.

What about going to a bank and get the money and then "run" to the next shop and buy something for 1000 Euros? Not a good solution for you probably.

[Hannah 8]

 

No wonder the German economy is a mess, you can’t buy anything.

 

Anybody know why this is?

hmm but actually with your question you kinda "forced" it that it drifted away ;)

[Purple Muffin 265]

 

I think the original topic is somewhat drifting, it’s not about living on credit, running up debt and so on but simply being able to buy something with ease.

 

When the CC bill arrives it gets paid straight away. I have the money. It’s just the German shops wont let me spend it (unless it’s in Cash) and I don’t have a German Account or EC card.

 

Only Numptys run up a credit card bill knowing they have no way to pay it back.

Or what about just paying with EC card in that case?

[Ami in Berlin 39]

 

I think the original topic is somewhat drifting, it’s not about living on credit, running up debt and so on but simply being able to buy something with ease.

 

When the CC bill arrives it gets paid straight away. I have the money. It’s just the German shops wont let me spend it (unless it’s in Cash) and I don’t have a German Account or EC card.

 

Only Numptys run up a credit card bill knowing they have no way to pay it back.

Yep. The whole reason I have a credit card is for 'universal acceptance'. Sort of pointless if it isn't 'universally accepted.' Sure, I can use my EC card in most shops, but I'd rather get the air miles I collect from using my credit card.