European Interchange fee question

[Endy0816]

Was just wondering why so many seem more aware of these in Europe. In some cases here one can receive a discount if using debit or cash, but largely limited to vending and fuel.

[swansont]

11 hours ago, Endy0816 said:

Was just wondering why so many seem more aware of these in Europe. In some cases here one can receive a discount if using debit or cash, but largely limited to vending and fuel.

In the US I've seen lower prices on fuel if you pay cash vs using a credit card.  

[Endy0816]

1 hour ago, swansont said:

In the US I've seen lower prices on fuel if you pay cash vs using a credit card.  

 

That. Businesses can save themselves the fee(~2% here), if a person uses cash instead. Are, naturally, other costs and risks involved with that strategy.

They all just seem much more aware of it overseas than we are. Curious about why that is the case.

Edited November 19, 2021 by Endy0816

[CharonY]

1 hour ago, Endy0816 said:

They all just seem much more aware of it overseas than we are. Curious about why that is the case.

In the US I found that case is rarely used in many stores. In contrast in many European areas cash is still very common.

[studiot]

14 hours ago, Endy0816 said:

Was just wondering why so many seem more aware of these in Europe. In some cases here one can receive a discount if using debit or cash, but largely limited to vending and fuel.

 

Not at all sure what this question is about, but usage varies quite considrably over Europe.

The reaction of the sales person to the question cheque, cash, credit or debit or charge card, phone  has several complex factor and so varies considerably.

Perhaps the most important is whether you are dealing with a large organisation or a small trader.
Many employees of large concerns can't be bothered to implement anything that requires a decision or extra work for themselves, even if they have the authority.
Flash the card of the phone, job done, no work for them.

On the other hand small concerns used to be more receptive to offering a discount for not using a credit card.
I have a personal policy of offering a small trader the choice of, whichever is cheapest for them, to try to support local business of multinationals.
Until recently they usually preferred cash, but changes to banking charges mean that many now find it cheaper to ask for a credit or debit card (some find one card cheaper, some another it just depends upon their bank).

But just this week Amazon has announced it is ceasing accepting credit cards, due to high fees (0.1%) has been mentioned for them.

In the UK people have accepted all these forms quickly and readily, as they did in the Netherlands.
Recently I had no problems on a bus in the Netherlands buying a bus ticket with a credit or debit card, but in many places in the UK you need a phone or a special charge card for your bus ticket.

But the first time I visited my friends in Germany I was suprised that the Germans disklike credit cards and not many places accept them, though more so do now.
It was explained to me that antagonism towards any form of credit is deeply ingrained in the post hyperinflation german psyche.

Ireland is pretty similar to the UK.

France and Spain are somewhere in the middle between UK and Germany.

Italy is similar to Ireland.

Edited November 19, 2021 by studiot

[Endy0816]

1 hour ago, studiot said:

Not at all sure what this question is about, but usage varies quite considrably over Europe.

The reaction of the sales person to the question cheque, cash, credit or debit or charge card, phone  has several complex factor and so varies considerably.

Perhaps the most important is whether you are dealing with a large organisation or a small trader.
Many employees of large concerns can't be bothered to implement anything that requires a decision or extra work for themselves, even if they have the authority.
Flash the card of the phone, job done, no work for them.

On the other hand small concerns used to be more receptive to offering a discount for not using a credit card.
I have a personal policy of offering a small trader the choice of, whichever is cheapest for them, to try to support local business of multinationals.
Until recently they usually preferred cash, but changes to banking charges mean that many now find it cheaper to ask for a credit or debit card (some find one card cheaper, some another it just depends upon their bank).

But just this week Amazon has announced it is ceasing accepting credit cards, due to high fees (0.1%) has been mentioned for them.

In the UK people have accepted all these forms quickly and readily, as they did in the Netherlands.
Recently I had no problems on a bus in the Netherlands buying a bus ticket with a credit or debit card, but in many places in the UK you need a phone or a special charge card for your bus ticket.

Describing a very different experience from just walking into wherever here and using a card without a second thought. Most wouldn't haggle over price though so perhaps that is part of it.

Here everyone and their dog is encouraged to have a credit card(ideally multiple).

Talking with people about the Amazon UK change in terms of Visa, is partly what prompted this. Was thinking might work to use an Amazon US account though. Ironically their Prime card is Visa here lol

 

1 hour ago, studiot said:

But the first time I visited my friends in Germany I was suprised that the Germans disklike credit cards and not many places accept them, though more so do now.

It was explained to me that antagonism towards any form of credit is deeply ingrained in the post hyperinflation german psyche.

Ireland is pretty similar to the UK.

France and Spain are somewhere in the middle between UK and Germany.

Italy is similar to Ireland.

1 hour ago, CharonY said:

In the US I found that case is rarely used in many stores. In contrast in many European areas cash is still very common.

Yeah a German I was speaking with did was say it was considerably more difficult to open an account. Half debating about trying to open a few foreign accounts just to see.

Edited November 19, 2021 by Endy0816

[swansont]

3 hours ago, Endy0816 said:

 

That. Businesses can save themselves the fee(~2% here), if a person uses cash instead. Are, naturally, other costs and risks involved with that strategy.

They all just seem much more aware of it overseas than we are. Curious about why that is the case.

I recall hearing about this being more widespread when credit cards were much less common, ~50 years ago. You could go into some small businessed and get a small discount for paying cash, if you asked.

[Endy0816]

8 hours ago, swansont said:

I recall hearing about this being more widespread when credit cards were much less common, ~50 years ago. You could go into some small businessed and get a small discount for paying cash, if you asked.

Ah okay so was a thing here we've just moved away from it. Probably merchants were more likely to mention their own fees to customers too.

Obviously in some edge cases cash is still ideal here too, but even there P2P transfers seem like they are coming into their own. So happy when I finally got a landlord willing to take payment through Zelle instead of having checks floating around out there.

[swansont]

7 hours ago, Endy0816 said:

Ah okay so was a thing here we've just moved away from it. Probably merchants were more likely to mention their own fees to customers too.

Obviously in some edge cases cash is still ideal here too, but even there P2P transfers seem like they are coming into their own. So happy when I finally got a landlord willing to take payment through Zelle instead of having checks floating around out there.

I think the early approach was because credit cards and their fees were new, and perhaps merchants didn’t want to be seen raising prices. Discounts let them keep some more of the profit. But two things happened in the 70s - wider adoption, and then rampant inflation. I imagine it’s easier to hide a price bump to cover your interchange (and other) fees when you’re doing it anyway, and once you assume most people will use credit vs cash, you’re going to price that in anyway.

I pay rent through electronic transfer now, too, instead of writing a check. Been like that for at least 7 or 8 years for me. (their web portal isn’t great, but I know what the foibles are now)