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Why Germans pay cash for almost everything

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Re: Why Germans pay cash for almost everything

#291

Post by romwell »

_Codemonkeyism wrote: post #261
codegeek wrote: post #94

Earlier quoted context omitted.

As an american, I find it strange that cash is faster. Most people who pay cash need to wait to get the change back unless they know the total beforehand and happen to have exact change. In the US, credit card machines are very fast even the chip enabled ones. Cash workflow: - Cashier tells you the total amount - You look in your wallet/purse - You spend time counting exact change if you do have it - If not, you take…

Cash workflow: - Cashier tells you the total amount - I get a 10 EUR note from my trouser pocket - Cashier gives back money - I put money in trouser pocket - Done - Home: I put all spare money in a large glass jar Credit card workflow: - Cashier tells you the total amount - You look in your wallet/purse - You swipe card/insert in chip reader - You insert PIN number - You shield your PIN entrie from the people next to…

Note for the American readers:

in the glorious lands across the ocean, chip cards of all kinds use a PIN instead of a signature, which makes way more sense anyway. Chip & sign is an American abomination.

Re: Why Germans pay cash for almost everything

#292

Post by sp332 »

rubicon33 wrote: post #279
_Codemonkeyism wrote: post #261

Earlier quoted context omitted.

Cash workflow: - Cashier tells you the total amount - I get a 10 EUR note from my trouser pocket - Cashier gives back money - I put money in trouser pocket - Done - Home: I put all spare money in a large glass jar Credit card workflow: - Cashier tells you the total amount - You look in your wallet/purse - You swipe card/insert in chip reader - You insert PIN number - You shield your PIN entrie from the people next to…

Credit cards don't require a PIN. Just get a credit card and pay it off every month. Free points!

America has much higher "rewards" than anywhere else. The reward money comes straight out of merchant fees.

Re: Why Germans pay cash for almost everything

#293

Post by galvin »

rubicon33 wrote: post #279
_Codemonkeyism wrote: post #261

Earlier quoted context omitted.

Cash workflow: - Cashier tells you the total amount - I get a 10 EUR note from my trouser pocket - Cashier gives back money - I put money in trouser pocket - Done - Home: I put all spare money in a large glass jar Credit card workflow: - Cashier tells you the total amount - You look in your wallet/purse - You swipe card/insert in chip reader - You insert PIN number - You shield your PIN entrie from the people next to…

Credit cards don't require a PIN. Just get a credit card and pay it off every month. Free points!

I think that only applies to the US. My credit card has a PIN. You don't need it for contactless payments but they are limited to €30.

Re: Why Germans pay cash for almost everything

#294

Post by dgudkov »

_Codemonkeyism wrote: post #261
codegeek wrote: post #94

Earlier quoted context omitted.

As an american, I find it strange that cash is faster. Most people who pay cash need to wait to get the change back unless they know the total beforehand and happen to have exact change. In the US, credit card machines are very fast even the chip enabled ones. Cash workflow: - Cashier tells you the total amount - You look in your wallet/purse - You spend time counting exact change if you do have it - If not, you take…

Cash workflow: - Cashier tells you the total amount - I get a 10 EUR note from my trouser pocket - Cashier gives back money - I put money in trouser pocket - Done - Home: I put all spare money in a large glass jar Credit card workflow: - Cashier tells you the total amount - You look in your wallet/purse - You swipe card/insert in chip reader - You insert PIN number - You shield your PIN entrie from the people next to…

In Canada:

- Cashier asks if I'm paying with a credit or debit card.

- Cashier enters the total amount into POS terminal. Meanwhile I pull my card from wallet.

- I tap the terminal with my CC.

- I put my card back into wallet. Meanwhile the cashier asks if I need the receipt.

- Optionally: take the receipt.

- Done.

Re: Why Germans pay cash for almost everything

#295

Post by mcrad »

codegeek wrote: post #94
_Codemonkeyism wrote: post #81

Earlier quoted context omitted.

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 an american, I find it strange that cash is faster. Most people who pay cash need to wait to get the change back unless they know the total beforehand and happen to have exact change. In the US, credit card machines are very fast even the chip enabled ones. Cash workflow: - Cashier tells you the total amount - You look in your wallet/purse - You spend time counting exact change if you do have it - If not, you take…

I think it only takes standing in a few long lines to compare cash vs. card, to understand your analysis does not reflect reality(?)

Re: Why Germans pay cash for almost everything

#296

Post by tapanjk »

rubicon33 wrote: post #279
_Codemonkeyism wrote: post #261

Earlier quoted context omitted.

Cash workflow: - Cashier tells you the total amount - I get a 10 EUR note from my trouser pocket - Cashier gives back money - I put money in trouser pocket - Done - Home: I put all spare money in a large glass jar Credit card workflow: - Cashier tells you the total amount - You look in your wallet/purse - You swipe card/insert in chip reader - You insert PIN number - You shield your PIN entrie from the people next to…

Credit cards don't require a PIN. Just get a credit card and pay it off every month. Free points!

In India all credit card transactions need a PIN after the card is swiped.

Re: Why Germans pay cash for almost everything

#297

Post by arvidkahl »

kerkeslager wrote: post #21
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?

If you want to see e-commerce as a relevant branch of the economy, it's stifling growth.

Funny enough, banks are now charging withdrawing fees for cash. So if you only ever buy things with cash, you will loose money on just acquiring it. Net loss for the non-banking economy.

Re: Why Germans pay cash for almost everything

#298

Post by galvin »

pmoriarty wrote: post #277
_Codemonkeyism wrote: post #265

Earlier quoted context omitted.

Every evening I put all spare change from my trouser pockets into a large glass jar next to the door. Once a year I reedem the money and have a really nice dinner.

Do you count the change before you redeem it? That is a huge time-suck for me, and I hate doing it. Also, I feel really bad for the cashiers that are unlucky enough to have all that change dumped on them and are forced to count it all. Some banks have change counting machines, but surprisingly, many don't and the change is still counted by hand while you wait.

If you get bags for change (like shops use) and split everything by denomination and amount it makes it a little easier.

Re: Why Germans pay cash for almost everything

#299

Post by richardknop »

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…

Also remember that whole Eastern Europe (including East Germany) had no electronic payments before fall of Soviet Union.

So credit cards took off in US in 80s but half of Europe just got out from under communism in early 90s and they were not very trustworthy of western banks so would prefer cash.

Also the banking and payment infrastructure was non existent so needed to be built from scratch. This probably slowed down uptake of credit/debit cards considerably.

Cash is still king in Eastern Europe today.

Re: Why Germans pay cash for almost everything

#300

Post by ijafri »

wott wrote: post #263
ijafri wrote: post #16

I have experimented with it too, and you may as well, leave your credit cards at home, and only use 'Cash' ... you will think twice before paying for $100 consumer item ... whereas using Credit Card, you barely had noticed the price tag .... so bottom line is, Yes, paying through Cash can 'significantly' cut your expenses on 'extravagant spendings'.

That's even more true with small spendings: with cash, you easily see the amount stocked in your wallet decrease item after item, shop after shop, drink after drink; you also need to "refill" at the cash dispenser when it gets empty so that reminds you that you have already spent the XX or XXX € you had taken 2 days ago; you also may not be bothered to refill and opt for a lower priced item, or a lesser quantity of i…

Yes that was the actual point, with CC you don't get the feel or pain of losing money ... When paying through cash you physically feel losing an amount of money. Humans.
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