Is it possible to make all purchases at the Christmas markets with a credit card or would it be better to have Euros on hand?

Use Cash!

Everyone has advised me to use credit cards whenever possible in Europe. Why do you say cash so emphatically?? Are the market stalls so small & local that they do not take CCs?

>so small ... do not take CCs?
Yes.

I've been reading some of your replies on currency in other posts. In a nutshell, would you recommend getting Euros before traveling to Europe or after arriving? We are going on a prepaid tour & really won't need a lot of cash. Thanks.

These small business men and women make their money by selling a lot of tiny items as fast as they can. They really don't have the leisure to mess with non-chip credit transactions.

Another thing is that I suspect a lot of the income from cash sales never get reported to the tax guys. Credit cards leave a taxible trail.

As the others say - cash. Just get € from an ATM when you need some . . . . .

You will need cash in street markets, smaller businesses, and possibly even some restaurants.

Wait until you arrive and get a small amount from an ATM using your normal debit card, or have home currency on hand to exchange somewhere into euro.

Or if you are more comfortable simply order it from your home bank or AAA or Thomas Cook before you go on your trip.

This costs more than using an ATM after arrival, but for a small amount, it would not concern me personally.

Most sellers on markets and even in stores will refuse credit cards for small sums (the limit is often 15 Euros) and take only cash (or cheques on a local bank)

Think about this for a moment.

Where do markets take place? In the middle of towns.

What do towns have lots and lots and lots of? Banks. All with ATMs. So in any European market aimed at consumers (with the exception of British car boot sales), you're never going to be more than two minutes' walk from a row of ATMs. Take a small amount of cash, and if anything pricey takes your eye, pop round the corner to an ATM to get some more.

Is this Germany you're asking about?

If yes: definitely cash!!!! Get Euros from an ATM.

I cannot imagine any stall on a christmas market to accept EuroCheque debit cards, let alone credit cards.
You cannot even expect all large stores in this country to accept credit cards. Some do, others don't, which is a nuisance, but nothing to be done about that. You'll need cash anyway.

Of all the stalls at Christmas markets I visited in Austria and Germany last December only one took credit cards--and that one was for expensive "trachten" clothing.

pmcp,
I live in Germany and absolutely rely on cash for all small purchases. Christmas market stalls will NOT take credit cards. I use my German bank debit card for most other transactions - credit cards are often not even accepted at small restaurants and hotels, especially in small towns in Germany. IKEA doesn't even take credit cards!

It's always a good idea to come with some cash on hand. I would bring about 200 Euro in cash and then use bank ATMs if/when you need more.

Searching for hotels, I find they charge additional if I'll pay with a credit card. Maybe markets, if they even accept CCs, have a surcharge too, so getting ATM cash makes it more economical?

It's difficult to find any shop that accepts a CC for purchases under 15€ or 20€. Karstadt and Kaufhof will accept them. EC/Maestro otoh will be accepted even at small supermarkets for 1 or 2€ buys, even though it would feel silly to use the card and you would have to apologize to others standing in line. You do this when you forgot to get enough cash from the ATM...

Small traders pay CC companies for the privilege of accepting CCs

It can be 4-5% of the cost price of the item with a minimum charge per transaction.

If a small trader allowed CCs for purchases of a few Euro it's likely they'd make a net LOSS on the transaction

Larger traders do deals with CC companies so they pay a fraction of that with no minimum fixed charge

Chance of being able to pay for your groceries using CC (except Karstadt,Kaufhof,Metro) = 0%

Chance of being able to pay for your groceries with EC/Maestro = +95%

Thanks, all, for your responses. They were all most helpful. I think I will follow hausfrau's suggestion & will feel most prepared the minute we arrive having a few Euros in my pocket. Then supplement via ATM as everyone else recommended.