Had dinner last night near Wiesbaden in a place popular with the “American crowd”. Surprise….they only accept German issued credit cards. When I lived in Germany I banked on the economy and didn’t have that problem.
I don’t know if last night’s a trend or not, but at least for me it’s a reminder to always carry cash. Especially handy this morning when we bought 100Euro of wine on a cash only basis at the annual Rheingau Wein Fest in Wiesbaden.
Curious to hear what others think.
We’ve found cash only restaurants and vendors in Germany for years including recently. I would add Austria to that small list of European countries where it is prudent to carry some euros. We are currently in Austria and I have needed euros on a train when the computer on the bistro car didn’t work, at an ice cream shop in Vienna, at a WC with turnstile and to buy fruit at an outdoor market. When I’ve asked what they prefer at restaurants they often say cash but accept either.
Having gone to the same place annually for the last 15 years (Passau, in Bavaria and bordering Austria), there is definitely a move to cards, post-Covid. Places which were cash only before Covid, or sometimes only took German debit cards, now take both debit end credit cards, even for small expenses. I have European cards, but I assume it would be the same for US cards. Passau is a port on Danube river cruises and they have quite a lot of American visitors.
I also noted across the border in Austria, cards are now used more frequently.
Last year, the only cash I spent was in a charity event. This year, I started using cash deliberately for small expenses, with the intention of increasing my euro coin collection. It worked: I got to add 6 missing coins to my collection!!
When we were in Berlin last summer we found a small number of places that accepted only cash, but it was easy to find acceptable alternatives that took cards. Munich was card-only. Never once had my Citi Costco Visa refused.
Obviously this is a very limited sample size. If I were going to the countryside I'd want some cash.
When we take walking or day tours we've tipped in cash, which is especially important for the "free" walking tours. I've heard of some of the tour conductors having a card swipe but we have not yet encountered one. Plus, some vendors as mentioned above and small towns where cash is necessary.
If you are going to a fest or market, you will need cash. If you want to use a public WC, you will need coins.
A lot of small cafes, restaurants, etc. are cash only or they have a minimum of say, 30€ before you can use your card.
Germany does not make it easy for businesses to use cards.
I stood in the middle of the Römerberg, which is the central tourist spot the other day in Frankfurt and counted 2 cafes, 1 gelato place and 2 restaurants that are cash only. The Kleinmarkthalle which is super popular for tourists and locals alike, is at least 75% cash only. The farmers markets which are in the city, and really popular for locals and tourists for wine, snacks, etc. are all cash only.
Surprise….they only accept German issued credit cards.
...and Euros (your "...it’s a reminder to always carry cash" comment)???
What is a German-issued CC vs a French, UK, or US issued CC?
Is it a different network the restaurant is using to validate and process the transaction? Is there a cost savings for the restaurant to opt for only some small subset of credit cards? Would a US issued DEBIT card be valid for them?
Wiesbaden is probably just far enough away from Belgium and France to not really get a lot of non-local/regional visitors, but it does seem like it would be a bit odd to exclude those folks. Maybe it's clear on the website that they are making an effort to just accept local CCs or cash?
But, yes, while I am in the "use a CC whenever possible/reasonable" crowd, I generally always have cash on hand - in the US and abroad. Cash remains a good back-up plan for many situations. Cash can also be a VERY good budgeting tool for folks who need that sort of extra support.
"they only accept German issued credit cards. When I lived in Germany I banked on the economy and didn’t have that problem."
German issued credit cards only? That has not been my experience. Decline AMEX sure-- often happens. But recently issued Visa or Mastercard, no problems for me. Now it's been awhile since I was in Germany (was just in Switzerland with no issue though.)
Per RS:
https://www.ricksteves.com/travel-tips/money/chip-pin-cards
Will My Credit Card Work in Europe?
By Rick Steves Despite some differences between European and US cards, there's
little to worry about. US-issued Visa and Mastercard credit cards,
along with familiar payment apps, typically work fine in Europe.
They may have been accepting girocards with Mastercard / Visa related logos on them as disguises rather than German credit cards.
There should be no assumptions made about cash usage or not - countries have different norms. Best to do current research.
Germany is one of those countries that transacts readily and frequently with cash. Although, last visit to Hamburg in 2023, I went to pay a museum entrance in cash and was asked to use a credit card. They were short on change. You never know!
In Frankfurt and Berlin I know of cashless hotels , only the cc is accepted. I've stayed in both, not for that reason obviously but cashless was the policy.
In Germany paying with cash for just about everything is absolutely no problem, absolutely no problem carrying large amounts on me with the proper security measures in place.
This "story" goes back to the summer of 2009, ie, rather dated. In the Dresden DJH hostel I tried to pay with my MC (didn't know any better then) only to be told at check-in that only the German MC was accepted...fair enough. So, I paid for the 4 night stay in cash. There is a similar card in France as there is in Germany.
Both countries have their own names for their cards. Germans and French too have shown me their respective cards when we all pull them out to compare in this sort of discussion.
Last month in Germany/Austria I used cash often, including in place where it was the only option. I think a lot of business owners in Germany are not philosophical about losing 2-3% per transaction to Visa, skeptical that cards will increase bottom line enough to create more profits.
In Germanic countries it seems to me that businesses commonly offer small discounts and that consumers see these discounts as significant, not rounding errors. 5% discount at local merchants with a leaflet in your hotel room, 3% of a cycle tour for early booking etc. To me this indicates a big middle-class aware of household budget.
I stood in the middle of the Römerberg, which is the central tourist
spot the other day in Frankfurt and counted 2 cafes, 1 gelato place
and 2 restaurants that are cash only. The Kleinmarkthalle which is
super popular for tourists and locals alike, is at least 75% cash
only. The farmers markets which are in the city, and really popular
for locals and tourists for win
There was a phrase among the Mexican Americans I grew up with in SoCal - "cash and carry Mexican." Mexicans on average like cash, and not just the "unbanked." Germans I guess like the feel of bills in their pockets too? Not sure, but maybe cash's relative prominence in Germany isn't just the result of retrograde payment systems, but also personal preferences ....
Not sure, but I do like cash! My dad used to stick "walking around money" in my pocket sometimes when I was a teenager. The money felt great, but I also liked the folksy ritual of it. Cash money is an enduring human cultural practice, and must say I like traveling to places where cash transactions are still common. I'm a bit deflated when I visit a foreign country and don't use their physical currency.
Also OP, 100 euro of wine at a wine fest is a very good choice. I salute you, prost!
“ Maybe I can find someone here who can explain to me how they do it?”
I guess I’m part of the non-cash crowd, so let me give it a try. First of all there are 2 types of debits; direct debits that I use to pay for things like my monthly insurance premiums, newspaper subscription etc. Then there are the debits when I pay for something with my debit card.
The direct debits are already visible as an “upcoming debit” in my banking app a couple of days before they’re actually debited. So if I see one I don’t recognize, I investigate and can cancel them if necessary. So far, this has never been the case.
When I make a payment with my debit card in a shop, I always check the amount before I tap my phone or card at the reader. Immediately after the payment is processed, my banking app sends me an alert informing me of the debit including the amount and other details. Since I usually pay with Apple Pay on my IPhone, I still have my phone in my hand when I receive the alert. Should something be wrong I’m then still at the register and can make a correction.
So this is how I do it and for me this works better than fumbling around with cash.
BTW; Even though I’m part of the no cash crowd, I know paying by card is not as common in Germany and Austria. I visited Aachen last month on a day trip and before I went there, I withdrew €50 from my bank account. In the end I didn’t need it and I could pay by card everywhere. As a result, that €50 is still in my wallet :-)
Some facts about payment behavior in Germany by federal bank:
https://www.bundesbank.de/en/press/press-releases/payment-behaviour-in-germany-in-2023-934894
New launched Wero is expected as game changer because it is a pure European Payment Initiative excluding all US American providers. With this trust the ratio of cash-based payments will likely shrink further.
Surprise….they only accept German issued credit cards.
Likely that "credit card" was the equivalent of a bank issued Debit card in the US, linked to their account. Not only in Germany, but to a lesser extent the Netherlands, many businesses only accept debit cards and cash. In general, in many European countries, transactions are done much more with debit cards (and bank transfers) than credit cards.
But, to the original point, yes, I always have cash in Germany (well, most countries) and use it almost daily, at least once. If you are really adamant, you could tread the tourist path and never need cash, but that may take some diligence, or willing to skip eating at the little Imbiss, and head to a restaurant...but you might want to always ask ahead.
Germans are extremely protective of their privacy and do not like the idea that card payments can be tracked and linked to an individual. They’re also reluctant to provide personal data for the same reasons. Given the history of the country, you can understand why this feeling might be so prevalent.
What Helen said. There was an article in the Economist a few years ago which mentioned privacy as a major reason for preferring cash.
It would appear that EU based credit card merchant fees are capped at 0.3%, whereas US credit card typically are in the 3.0% range. So it is understandable that a German restaurant would only accept German credit cards.
https://eur-lex.europa.eu/EN/legal-content/summary/fees-for-card-based-payments.html
BTW, I find that about half of restaurants in my area now tack on 3% to the bill if paying with a credit card.
In cafes, restaurants in Munich , Vienna , Berlin where the patrons are both German and foreign tourists, including Americans, it's very interesting to see who always takes out the cc and those most likely to pay cash, assuming the establishment accepts credit cards in the first place. What does this difference say
I know restaurants in Munich , Berlin and Vienna where cash only is the policy just the hotels above where it's cashless.
Germans have this saying which I saw in Vienna, "Bar schützt vor dem Staat." true.
You can expect and bet that German society will stay cash oriented, maybe in contrast to the rest of Europe.....good. I spent all of June in Germany and Austria, using cash in all transactions, from cafes to hotel bill, since I had anticipated this and carried that large amount on my person.
Germans stay out of debt by only using cash or their debit cards instead of credit cards. They don't get points for flying, etc. so there is no reason to use a CC.
Watching the cash in my wallet dwindle, and the resulting feeling of
"I know exactly why," is something I'm familiar with.
I've read some American economics pundits who propose that one cause of our recent consumer debt explosion is that people no longer use cash, and so money is less tangible/real, and so many just keep tapping their cards and/or phone when they don't have the funds to pay it off.
I think about this with my kid. When I was a teenager if I had 5 bucks in my pocket I could get a burger or a drink and fries, but not all three. But she is completely acclimated to the idea that the plastic just makes the thing appear. She has a budget, but I see her decision making work differently than mine around any given purchase. I have a scarcity mindset and she doesn't; I see personal economic choices in terms of opportunity costs and she sees them in terms of just the current desire. Cash is ultimately as abstract as tapping a phone, but there is an immediacy to the exchange of physical symbols of purchasing power that creates, maybe, more of a sense of depletion when you spend. Probably why many personal finance gurus say that if you are in debt only use cash.
Anyway, I like the way Germans regularly use cash, hope it lasts.
Ms. Joe and Mignon, thank you for your insights. Many Americans have college loan debts of tens of thousands of dollars, along with credit card, car, and perhaps mortgage debt. I agree that it is best to buy a car with cash/debit, but that is a rare thing here. But similar to Germany getting a loan for property is common, as few people have $400,000 plus in savings to buy a house. The average house cost in the U.S. is around $500,000. The average new car price is $49,000 and average used car is $30,000.
Thank you Germany! You make me smile! Thank you Frankfurt, for enabling collectors! Even here, in the most cash forlorn and cash proscribed country on the planet, not all downtown stores accept cards. Charming Mynt & Musik (record exchange) on Stigbergstorget is cash only. Every time i'm in there and hear him tell another customer I smile. There are governments who consider access to cash a matter of national security. As several members of this forum have noted; technology always works... until it doesn't anymore! And I would thank any government, or worse still, big tech company, not to spy on any of my transactions.
Thank you Germany, for the smile! Hope to see you soon! When the Frankfurt vendors notice that, just for once, one of the assembled decidedly Scandinavian travellers unexpectedly pulls out bills and coins, perhaps they will smile too. Always take care to return home with a 50 euro note as they are lucky charms. Having one means you will return to Europe.
"...travelers pull out bills and coins...." Bravo ! With the proper security measures taken, then carry a large amount of cash so that resorting to the credit card can be avoided. What are you afraid of?
In SF one can find numerous Latino and Asian businesses , ie, restaurants , especially those run by Chinese, to be cash only.
Fred, for most of us fear has nothing to do with it. It's all about convenience, and for me, fooling around with cash is inconvenient and a time-waster. But I understand others have a very different perspective. Both approaches have their pluses and minuses.
