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Why Germans pay cash for almost everything

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Re: Why Germans pay cash for almost everything

#81

Post by _Codemonkeyism »

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…

As a German

a.) I mostly pay cash because it's faster

b.) some shops that can afford it only have cash payments to save on CC costs

Not because of inflation or because something happend 100y ago.

Re: Why Germans pay cash for almost everything

#82

Post by louisswiss »

m_mueller wrote: post #33

As a Swiss German I think the currency stability argument is moot. Swiss Frank is one of the most stable currencies available and we still have a similar attitude to cash as Germans. IMO it's mainly due to the following reasons: 1) CC is slow, at least in Switzerland. Like in Germany, efficiency is baked into the culture - people hate to wait on someone paying his chocolate bar with credit card. It's also not rare fo…

Have been living on and off in Switzerland for the last 7 years(Zurich mainly). Your post describes my experience in Switzerland when I first moved here, however for the past year or two (since contactless payments and NFC took off) I would say that your first point has completely reversed - it is now much faster to pay with card unless you have the exact change ready.

Also regarding your third point, anecdotally I have heard that many smaller shops/restaurants are now pushing for non-cash payments as it is more difficult for employees to steal that way.

In Sweden and Denmark there are many places where cash isn't accepted. Come to think of it, I was on a business trip to Frankfurt last week and the restaurant we ate at only accepted cards.

Re: Why Germans pay cash for almost everything

#83

Post by distances »

romanovcode wrote: post #68
intsunny wrote: post #65

Earlier quoted context omitted.

> 1) CC is slow While the CC may or may not be slow. In the 5+ months I've now been living in Germany, I've noticed that people are very keen to pay with exact change if they can dig it up. This is an even slower process, but also seems to be the norm.

Also, almost every store accept touch-pay method where you just touch your CC with the terminal and it is payed without entering pin or providing signature. Only works if the amount is less then 25 EUR but still it is much faster then cash.

> Also, almost every store accept touch-pay method

Definitely not the case in Berlin where cash is king, German bank cards work often, and credit cards are rarely accepted.

Re: Why Germans pay cash for almost everything

#84

Post by dsfyu404ed »

dcosson wrote: post #55
revelation wrote: post #19

Earlier quoted context omitted.

Because you are paying much more in transaction fees. In the EU, transaction fees are capped at <<1% so there are no silly cash-back programs.

But you pay those transaction fees whether or not you use a credit card. I believe there are even laws against charging more for paying with a credit card (beyond just having credit card minimum like you see at delis and mom and pop shops). Yet another example of wealth transfer in the US from the poor (who often don't have credit cards, or don't have the high rewards ones because they cost $150+ dollars a year) to t…

In the US it's common to see cash prices at gas stations.

Re: Why Germans pay cash for almost everything

#85

Post by overcast »

simonhfrost wrote: post #51
overcast wrote: post #15

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

I can't comment about the rate of muggings, but ATMs are everywhere which would promote holding less cash for shorter periods of time. It's not uncommon to visit a bank in the centre city where most of the 5-6 ATMs are full of people withdrawing cash (which is a stark difference between more cash-digitised nations).

Sounds incredibly inefficient!

Re: Why Germans pay cash for almost everything

#86

Post by arethuza »

m_mueller wrote: post #33

As a Swiss German I think the currency stability argument is moot. Swiss Frank is one of the most stable currencies available and we still have a similar attitude to cash as Germans. IMO it's mainly due to the following reasons: 1) CC is slow, at least in Switzerland. Like in Germany, efficiency is baked into the culture - people hate to wait on someone paying his chocolate bar with credit card. It's also not rare fo…

I pay for most purchases here in the UK with a debit card - mostly using contactless payments. There is no doubt to me that this is much faster than mucking about with bits of paper and chunks of metal.

e.g. when buying train or tram tickets the printing of the ticket takes much longer than the payment step.

Re: Why Germans pay cash for almost everything

#87

Post by sparkling »

_Codemonkeyism wrote: post #81
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…

As a German a.) I mostly pay cash because it's faster b.) some shops that can afford it only have cash payments to save on CC costs Not because of inflation or because something happend 100y ago.

As a German

a) I don't want to feed the Visa/Mastercard/Amex/Whatever leach earning a few cents of every transaction.

Re: Why Germans pay cash for almost everything

#88

Post by sparkling »

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…

> Euro

> stable

Re: Why Germans pay cash for almost everything

#89

Post by laumars »

oneeyedpigeon wrote: post #79
laumars wrote: post #18

Earlier quoted context omitted.

Your economy is much more stable than mine in the UK yet anecdotally I've observed we use cards to pay for everything. Even silly little things that only cost a couple of £. In fact it is rare that I ever carry cash. The same is true for a fair number of my friends and family as well.

I'm pretty sure I used my UK (debit) card, the other day, to pay for something absurdly cheap - maybe 49p? I was about as surprised that they accepted it as I am when a shop requires me to pay a huge minimum - e.g. £10 - and it's not quite as straightforward as "big shops do this, small shops, that".

The "I only have my debit card on me. What's your minimum spend" conversation used to be annoying. Thankfully that's been less of an issue since contactless as shops now often expect you to pay for small items on card.

Re: Why Germans pay cash for almost everything

#90

Post by danielbln »

ant6n wrote: post #72
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…

> As a German I call that theory into question. Our currency has been stable for 60+ years. Also as a German, OUR currency has been stable for 26 years. I'd still question the theory.

Yeah, what a silly theory. Not once have I thought "oh, gee, I better not pay with CC because remember what happened back in the 20s/30s". And yes, you could argue for some sort of cultural trait that stems from that time, but I don't know anyone who pays with cash because they inherently distrust the financial organisations.
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