Why Germans pay cash for almost everything • Hacker News Board

Re: Why Germans pay cash for almost everything

#21

Post by kerkeslager » Tue, Aug 08, 2017, 2:13 PM UTC

arvidkahl wrote: post #14

Most brick & mortar stores in Germany will not offer debit card payments under 10 Euros, since the fees they have to pay are extremely high. Most clerks will frown upon small card payments for that reason, and sometimes outright decline the payment, even if that means no purchase happening. Credit cards are rarely accepted in any store but larger ones in malls. Most Germans, and that was pretty spot-on in the article…

I can see why this is problematic for the e-commerce industry, but you seem to be saying this is problematic for the economy as a whole. If that's what you're saying, could you provide some justification for this claim?

Re: Why Germans pay cash for almost everything

#22

Post by discombobulate » Tue, Aug 08, 2017, 2:14 PM UTC

mtmail wrote: post #2

According to https://www.cashforless.de/ec_cash_info/Fakten_zur_Kartenzah... methods for payments in stores 2011 was 57% cash, 5.3% credit card, 33% debit card ( https://en.wikipedia.org/wiki/Electronic_cash ). > "of course, [the Germans] attitudes toward currency must owe something to Germany’s tumultuous monetary history. During the Weimar-era hyperinflation that peaked in 1923 [...]" > "the German tendency to sett…

Did you learn about the inflation @ school? In the UK we weren't taught about the Weimar Republic's hyperinflation (in education up to 16 y/o). My friend who did history @ a more advanced level was, however.

Re: Why Germans pay cash for almost everything

#23

Post by distances » Tue, Aug 08, 2017, 2:14 PM UTC

overcast wrote: post #15

Considering everyone is carrying around wads to pay in cash. Are thieves/muggings a big problem in Germany?

Normal person doesn't carry around wads of cash during their normal day. From the article:

> On average, wallets in Germany hold nearly twice as much cash—about $123 worth

Not worth a mugging in a Western country that doesn't leave its citizens starving.

Re: Why Germans pay cash for almost everything

#24

Post by Cenk » Tue, Aug 08, 2017, 2:15 PM UTC

In my experience Germans use cash due to privacy concerns — they don’t want anyone knowing what they buy.

Re: Why Germans pay cash for almost everything

#25

Post by SyneRyder » Tue, Aug 08, 2017, 2:15 PM UTC

jruz wrote: post #10

YSFEJ4SWJUVU6 wrote: post #4

It might be worth mentioning, but the payment preference goes both ways. Germans' preference for cash payments sometimes means or meant that payment options common elsewhere might not be available. This caught me out at a McDonald's in Berlin that accepted neither Visa nor MasterCard earlier this decade. Even bigger brands adapt to local culture, it seems.

Agreed, most places in Berlin won't take cards or only take EC cards. That has made me use cash, and not fear of any kind.

This is somewhat frustrating as a tourist to Germany (withdrawing cash usually involves a 3% exchange fee, and bank fees if you use the wrong ATM), but wouldn't be so bad if there was a way to get a reloadable EC card (or bank account with EC card). But as far as I can tell, reloadable EC cards don't exist, and I don't think there's a way to get a German bank account without a permanent residence in Germany.

Re: Why Germans pay cash for almost everything

#26

Post by fabian2k » Tue, Aug 08, 2017, 2:15 PM UTC

YSFEJ4SWJUVU6 wrote: post #4

It might be worth mentioning, but the payment preference goes both ways. Germans' preference for cash payments sometimes means or meant that payment options common elsewhere might not be available. This caught me out at a McDonald's in Berlin that accepted neither Visa nor MasterCard earlier this decade. Even bigger brands adapt to local culture, it seems.

debit cards are more commonly used than credit cards in Germany. I'd expect almost all adults to have a debit card, but there are plenty that don't have a credit card. This might not so much reflect cash usage, but simply that the type of cards used in Germany is also different.

Re: Why Germans pay cash for almost everything

#27

Post by [deleted] » Tue, Aug 08, 2017, 2:15 PM UTC

YSFEJ4SWJUVU6 wrote: post #4

It might be worth mentioning, but the payment preference goes both ways. Germans' preference for cash payments sometimes means or meant that payment options common elsewhere might not be available. This caught me out at a McDonald's in Berlin that accepted neither Visa nor MasterCard earlier this decade. Even bigger brands adapt to local culture, it seems.

[deleted]

Re: Why Germans pay cash for almost everything

#28

Post by overcast » Tue, Aug 08, 2017, 2:16 PM UTC

distances wrote: post #23

overcast wrote: post #15

Considering everyone is carrying around wads to pay in cash. Are thieves/muggings a big problem in Germany?

Normal person doesn't carry around wads of cash during their normal day. From the article: > On average, wallets in Germany hold nearly twice as much cash—about $123 worth Not worth a mugging in a Western country that doesn't leave its citizens starving.

$123 is still a lot of money. Pickpockets aren't roaming gangs of starving thieves.

Re: Why Germans pay cash for almost everything

#29

Post by Hersentooped » Tue, Aug 08, 2017, 2:17 PM UTC

> One explanation is that, as researchers have found, memories of hyperinflation have quite a bit of staying power. People in countries that suffered banking crises quite sensibly often prefer to save in cash [...] For the same historical reasons—they loathe debt.

This explanation seems absurd (or at least counter-intuitive). If your fear is hyperinflation the two things to do would be to avoid hoarding cash that can be worthless tomorrow and to buy as much tangible stuff as possible with a debt you will have to pay back with this devaluated currency.

Re: Why Germans pay cash for almost everything

#30

Post by stupidcar » Tue, Aug 08, 2017, 2:17 PM UTC

I spent a few weeks working in Munich and was surprised when I first went into a supermarket to buy lunch. The payment process was like stepping back in time 20 years in the UK. No self-checkout kiosks, just a single cashier, and a line of people all paying in cash.

It worked, but it was a much slower process than was I was used to. I guess the stereotype of German super-efficiency made me assume they would be quick to adopt such technologies. But I think perhaps that is countered by a degree of conservatism about switching away from systems that are understood, and proven to work.