Germany: Cash is still king

[chrisild]

Cash is the most commonly used means of payment in Germany. And according to a new study presented by the Bundesbank today, that will not change dramatically any time soon. Here is an English media release:

http://www.bundesbank.de/download/presse/pressenotizen/2009/20090707.studie_zahlungsverhalten.en.php

The study is based on the questionnaires and "payments diaries" of more than 2,000 persons. Measured by the value of the transactions,

* cash accounts for a share of 57.9%,
* giro cards (the former EC cards) 25.5%,
* and credit cards for 3.6% of all purchases.

Also interesting: the average amount of cash carried is €118 (with €6.70 being coins). And while people may prefer cash in many situations, most do have some "plastic" means of payment: 91 percent have a giro card, and 27 percent have a credit card. More information (study, abstract, background info) in German is available at the Bundesbank's website.

Christian

[tonyclayton]

I have often found it difficult to use a credit card in Germany - cash is certainly the most popular medium for purchases, even in hotels.

[chrisild]

Well, hotels in DE will of course accept credit cards (unless one stays at B&B type places maybe). And with hotels the most popular type of payment is not cash but a plain money transfer. (According to this study, cash has a 17% turnover share when it comes to hotels. Girocard payments 17% too, credit cards 19% ... and transfer 44%.)

With gas stations you have a relatively high percentage of non-cash payments too: 46% girocard, 11% credit card, 41% cash. It's the "everyday payments" in supermarkets, cafés, pharmacies, etc. where cash "rules".

What I found interesting too, by the way: When it comes to Internet purchases, most use transfer again (57%), girocard and credit card 7% each, other non-cash payments 27% ... and ... cash 3 percent! Seems that some still use the "cash in plain brown wrapper" method.

Christian

[Figleaf]

OK, so I'm weird. I seldom carry more than 5 euros, often less than 1 euro (2.20 today). Then again, I seldom buy anything. Most of my money goes to dragon-ladies with a little saucer, reading a gossip magazine in front of the entrance to the loo. Pfft. So most of my transactions are still cash and I'm not weird. No, wait. I pay all my coins by electronic transfer. I am weird after all.

Peter

[Bimat]

What is a Giro Card?

[BC Numismatics]

Christian,
  Are cheques still in use in Germany? I am sure that you can spend a Euro-denominated traveller's cheque in any Eurozone country.

Aidan.

[chrisild]

A girocard is some kind of debit card that is (usually? always?) linked to a "giro" account - which is pretty much what in the US is called a checking account. Domestically the card can be used almost everywhere. You use either a PIN code or your signature to authorize the payment; the next day or so the amount is taken off your bank account. Most girocards have additional features, such as the Maestro function (makes them usable outside DE) or the Geldkarte function (a little chip for small payments, hardly ever used though). I have two of those cards and a credit card ...

Aidan, checks are no longer used here. Well, they may still exist, but (and I am referring to Germany here) checks have been pretty much phased out. I wrote my last one in, uh, 2000 or so. Would have to look it up. And travelers checks, I believe that Amex offers them here, but I don't think they make much sense unless you plan to travel to places where credit cards and ATMs are uncommon. Whether you can "spend" them, well, I don't know - if you want to use one as a means of payment, most stores would simply ask you to go to a bank and cash it. That may be different with hotels that have a lot of international customers.

Christian

[tonyclayton]

In the UK almost all shops, etc., will no longer accept cheques.  However, they still play a useful part in settling accounts by post, such as payment for stamps taken from an Exchange Packet.

[BC Numismatics]

Tony,
  It sounds like the issue of cheques is dying out in the U.K..There was all talk of postal orders being discontinued in the U.K.,but it is the online auctions that have made them very popular again.

Here in New Zealand,most transactions are done with cash.We also have an EFTPOS system in which you pay by card through a terminal.Yes,you can put your A.T.M. card through them.Cheques aren't as popular as they once were.

I wish that postal orders & postal notes were reintroduced over here.They disappeared from use in the 1980's.Extant ones are very popularly collected,especially in England.

Aidan.