What Is the best way to pay for things in Germany?
 

I haven't been to Germany in a number of years and I'm wondering if travelers checks are still used or if a different type of payment method is more appropriate such as credit card, ATM debit card or any other suggestions. Is there a good way to avoid transaction fees when using credit or ATM cards?

Generally, travellers cheques are not as common as they used to be. Sometimes, only banks will cash them and they may charge as service fee. Most travellers use ATM debit cards and withdraw sufficient cash for several days (there will likely be a small, fixed amount service fee) and use credit cards for larger purchases made in stores or hotels. Some bank cards advertise no foreign exchange fees, but unless you already have that card, it is probably not worth getting a new card for that purpose. Those fees become a cost of travelling.

Enjoy your trip.
tC

Traveler's checks are obsolete now. Use your credit card for large purchaes, and get cash for small purchases from an ATM machine. Use a CC that doesn't charge exoribtant (like 3% ), and an ATM card that doesn't charge you fees on the US side (there won't be any on the European side).

>>Generally, travellers cheques are not as common as they used to be. Sometimes, only banks will cash them and they may charge as service fee.<<

Not as common as they used to be?? That is an understatement for sure! Sorry -- but most banks will not cash them - they want nothing to do w/ them.

>>here will likely be a small, fixed amount service fee<< . . . assessed by your own bank, not the German bank.

In Germany IME more transactions are cash than are by credit card. Though ccs are accepted pretty much everywhere. So, yes use your ATM/debit card to get cash every few days and charge what you can.

You should use your credit card and ATM for purchases. In Germany mostly credit cards are used for transactions.

Banks in Germany will NOT cash travelers checks.

The only place that will cash them are the money exchanges located in the airports and large train stations. You will get the worst exchange rate possible, plus pay the highest fees around. No business will accept them either.

Use an ATM, credit or debit cards.

Traveller cheques have never been "common" in Germany to anyone except banks, businesses have never taken them as payment. Nowadays they are considered a thing of the past and obsolete.

Credit cards are not accepted everywhere because of the fees they charge from shop/business owners. Some places take them, others don't. No one will accept cards for small sums under 10 €. Everyone, however, will take cash. This is still very much a cash culture. You need to carry some cash all the time. A combination of ATMs to obtain cash (check the option of a debit card because of lower fees) plus a credit card for larger purchases and as backup will work best.

Generally Germans like cash (euro), but they will put up with Visa for reasonable sums.

AarenAce: "<i>In Germany mostly credit cards are used for transactions.</i>"

Not IME . . . .

Cash rules. Credit cards turn you into a credit slave. Obtaining a credit for anything other than real estate dishonors you! Unfortunately, nowadays quite a few younger people have no honor left.
Anything up to about 20000€ can easily paid in cash.

In Germany my own EXPERIENCE has been that

credit cards very much ARE accepted in places like department stores

whether or not there will be an ATM fee "on the European side" can vary depending on which machine you use

You may want to listen to those who live in Germany...

As to travelers' checks, I agree with the oave posters. They are useless, and when/if you do cash them, you'll get a bad exchange rate.

The best ways to get money are the credit card and the ATM.

I use my credit cards for major expenses like hotels because I earn miles with my card. I have taken numerous trips to Europe with my frequent flyer miles.

However, my card charges a 3% fee on each foreign purchase. That means that a $500 transaction would cost $15.

I use my ATM/debit card to obtain cash. My bank (Wells Fargo) charges $5.00 for each foreign transaction, so I withdraw $500 or its equivalent in euros.

Obviously, using cash is cheaper for me. However, I do love those frequent flyer miles.

I agree with those who live in Germany.

We have found credit card/debit card acceptance in Germany to be lower than in a lot of other countried - definitely lower than in the US where you can use a card for practically anything.

We get cash from the ATM every few days and then pay for meals, entrance fees, drinks, incidentals, local transport, etc. with cash. This removes the question about whether or not a business accepts cards. It also removes the issue of trying to pay for things like public transportation at an unmanned kiosk with a magnetic strip card (rather than chip and pin).

logos99
I am so sorry. I actually thought I could travel so I had better cancel my trip. 20000 euros works out at $AUD 25,000. I just don't have that amount. Just pay it in cash. I have travelled quite a bit and used both credit and debit cards My trip has already been paid for and I don't owe a cent to anyone but you have just made me feel like a pauper. Thanks so much.

I didn't think anyone made traveler's checks anymore? Seriously do they?

logos, credit cards are a convenience, to avoid carrying larger amounts of cash. It's possible to use credit cards and pay them off monthly, never paying a penny of interest.

logos99..I am not dishonored at all, not have I ever been in such a condition. I charge everything, pay it off on time, gather my airmiles and then I go and go and go!!! What ever causes you to be so negative. BTW my kids, all 6 adults now, and their spouses do the same!!! You certainly are missing out on rewards with your attitude!! LSky, AmX still does travellers checks but why bother..No one like them as far as I know overseas or here in No.Amer. 2468mary..A pauper?? No way. Not owing a cent makes you well off beyond description. I owe this month's charges until rhe 12th!! Then I will join you!!

I'm curious about why taking out credit to buy real estate does not dishonour your family name. Given the damage that any credit does to the economy (eating tomorrow's lunch today) how is any line of credit acceptable? :-)

logos99 just enjoys insulting people when ever he gets the chance. The rest of us pay him no mind.

Using a credit card does NOT bring dishonor on people. Next thing you know, he will tell us that we will have to sit in stocks and have rotten veggies thrown at us for not paying with cash and being credit card slaves.

Most people using credit cards here are not even thinking about "credit", for most it is just a card that gets money from your account to the merchant without having to bother with withdrawing cash. Normally the money is withdrawn straight from your account if it is a debit card, or once monthly if it is a credit card, but that is the whole difference. Few people (except some undisciplined ttenagers :-) use the card without having the needed cash in the account beforehand.
That said, I do see occasionally old people coming to the bank when their pension payments are due, and withdrawing the entire sum in cash. Mostly 80+ generation though...

Thank you both for the information.

Not sure what meds logos is on, but living in Germany I would not know one single individual not owning a credit and debit card.
You can pay with credit in any supermarket, any other than mom and pop stores, any hotel but many"quaint" small pensions or B&Bs, restaurants, train ticket machines etc
Cash still rules in pubs, smaller restaurants, newsstands.. So more establishments which usually have smaller transactions of up to appr €20.
These places may take the local debit cards, though which is probably of no interest for the visitor from overseas.

There are the debt slaves like a few of you and there are the others, which are still a majority in Germany. They earn the money before they spend it. The majority of savers is the reason, people prefer cash and only spend what they have. Those are the facts.

I very much doubt Mamhattaingirl has ANY knowledge about Germans and Germany by the way, she claims K(F)rankfurt is a nice place, so.. , somewhat delusional.

Logos999, you must have had a cc refused/cancelled/disputed charge denied..No credit rating or abused in financial situations otherwise why the vitriol like comments.. Generalizations (ie:majority of Germans) do nothing to add to your position if you are even aware of your nonsensical stance!

LOL

As a visitor to Germany for the first time last May, we found that the places we chose to stay, small B&B's and family owned guesthouses all requested cash rather than credit cards. We also chose family owned restaurants where payment by cash was expected rather than credit cards. In our experience, we used credit cards much less in Germany than we have in our travels to other places in Europe.

We had a very interesting discussion with the owner of the current #1 TripAdvisor restaurant in Rothenburg on the topic of cash vs credit in Germany. Deborah

Cash is often desirable as it allows the recepients to put it in the cookie jar if they so desire..Taxes are brutal for some and although this is undoubtedly illegal it certainly can be a temptation. I have received published discounts for cash in some countries (Hotel in Turkey for 1) and cash eliminates the fees that credit cards charge the businesses. In the present economy every little bit helps. We always use cc in travelling except in small stores, villages and where it is requested initially.

"Cash is often desirable as it allows the recepients to put it in the cookie jar if they so desire."

Germany is more cash based than many other countries but additionally if you want to pay with a card, Germans more often use a debit card (Maestro system) than a credit card.

It's the most common payment system and the card is issued with a bank account anyway. So many Germans just don't see a reason why they need a credit card since it offers no advantage to them. You just need them if you deal with non-German companies which don't offer this option.

Personally I've never used a credit card before my early thirties when my job required booking of hotels and flights.

I agree with Hans that a debit card (EC Karte) is more common in Germany - even at IKEA near Frankfurt there is a lane at the checkout for EC Karte only, or there used to be when we were regular visitors. Here in Australia the IKEA checkout lanes are marked 'credit card or EFTPOS', so credit card gets more of a look-in. And many household bills are not paid by credit card but by automatic direct debit from the bank account. I also find nowadays when I want to buy something over the internet from Germany that frequently businesses expect direct debit like a bank draft and don't take credit card. I swallow it but it's annoying because to arrange a bank draft it costs me A$35 at my bank, and they then issue a cheque which has to be sent by mail, and even then it sometimes costs the recipient money to cash it, which I have to pay for as well. I have only just discovered businesses like Xoom which will pay anyone anytime but have not yet had a chance to try them out.

Lavandula

Most comments have been so helpful and someone commented about taking out enough cash to pay for incidentals which made a lot of sense. I always check my transactions via a secure internet connection and pay back the credit card straight away if I have had to use it from a savings account.
Now while I am on the subject of money will France, Nice, Bosnia,Hungary, Bulgaria and Romania accept Euros and it is better just to depend on those rather than a lot of different currencies? Also being a frequent toilet user what is the normal cost in most European countries for a trip to the loo and are there any loos I should avoid (reasons of personal safety, absolute lack of hygiene while I like and expect clean I am not clinically pedantic).

For countries not on the euro, it is best to use the currency of that country. While you may find places in those countries that are willing to accept the euro, they will usually be only the really touristy places and you will end up paying more for things.

Thanks November_moon. I know I will always get a good and helpful response from you.