What's with Visa and MasterCard in Europe? (rental car, sales)

[Ultrarunner]

I occasionally travel to Austria and Germany on business and I have noticed over the last few years that many places that previously accepted Visa and MasterCard no longer do so.

Cases in point..

A hotel I have frequented now has signs posted saying no Credit Cards accepted. I asked the owner why over dinner and he said that Americans use credit cards and he no longer has enough American tourists to justify accepting Credit Cards...

On two occasions, one in Austria and one in Germany, I was hosting a small group for dinner and the restaurants predominately displayed the MasterCard and Visa logo on the front windows.

Both times when I tried to pay the bill, the waiter said that his machine was broken and that I would need to pay in cash. I politely responded that I did not have any cash and would be happy to mail my payment... and then... almost magically... the waiter said that he will try his machine again and in both instances the charges went through.

At the small town where Castle Neu Schwanstein is located I witnesses an American Women attempting to use her credit card to pay for about $60 worth of souvenirs. The sales clerk became upset and said something about Americans and their credit cards. The women was dumbfounded so I step in and reminded the clerk that his shop is displaying the Visa logo on the front door... with that, the clerk said no more credit today... cash only!

Seems counter productive to advertise Visa and MasterCard and then not accept it... perhaps these merchants have reached a point where American Tourist Dollars matter very little?

On the flip side, one the women in my group found a delightful little craft shop in the old part of Hallstatt in Austria. She found several items she liked and asked the clerk if she could use her Visa Card. The clerk said of course and my friend bought almost $400 in merchandise... due in part because the shop graciously accepted her Visa Card...

I would be interested to know if these are isolated cases or has anyone else had a similar experience?

[Skittle]

Originally Posted by Ultrarunner

A hotel I have frequented now has signs posted saying no Credit Cards accepted. I asked the owner why over dinner and he said that Americans use credit cards and he no longer has enough American tourists to justify accepting Credit Cards...

What crap is that *lol*? Americans are not the only ones using credit cards.

Originally Posted by Ultrarunner

On two occasions, one in Austria and one in Germany, I was hosting a small group for dinner and the restaurants predominately displayed the MasterCard and Visa logo on the front windows.

Both times when I tried to pay the bill, the waiter said that his machine was broken and that I would need to pay in cash. I politely responded that I did not have any cash and would be happy to mail my payment... and then... almost magically... the waiter said that he will try his machine again and in both instances the charges went through.

At the small town where Castle Neu Schwanstein is located I witnesses an American Women attempting to use her credit card to pay for about $60 worth of souvenirs. The sales clerk became upset and said something about Americans and their credit cards. The women was dumbfounded so I step in and reminded the clerk that his shop is displaying the Visa logo on the front door... with that, the clerk said no more credit today... cash only!

Seems counter productive to advertise Visa and MasterCard and then not accept it... perhaps these merchants have reached a point where American Tourist Dollars matter very little?

I heard that businesses have to pay a fee when someone uses a credit card. Some businesses tell you that you must spend a minimum amount before you can use your cc; however, they forget that this is illegal.

[tablemtn]

Just start an interest-bearing Euro-denominated bank account with HSBC or one of the other major European banks, and get a debit card from them. It's more convenient.

[Threestep]

The concept credit has never really caught on. It seems to go against our grain:>)

Travel was made easy early on with Giroschecks. Basically cashier checks drawn on individual accounts signed by the account holder guaranteed to 200DM and accepted in all European currencies. The Euro eliminated this need and debit cards are in every wallet.

Consider processing/equipment fees and accounting/tracking efforts for a vendor. Is the occasional US tourist worth the trouble?

When in Rome - spaghetti:>)

I tried to pay cash for a larger purchase in the US and was told check or credit card.

[Threestep]

Originally Posted by Skittle

What crap is that *lol*? Americans are not the only ones using credit cards.



I heard that businesses have to pay a fee when someone uses a credit card. Some businesses tell you that you must spend a minimum amount before you can use your cc; however, they forget that this is illegal.

The processing companies charge per item fees to the vendor, depending on the agreement can hold the payout for a specified number of days, sell/lease their equipment. Averages run 1-3%.

As long as a vendor is consistent in setting a base for accepting this method of payment why is it illegal. Would you please share the source of your information? Thank you.

[DontH8Me]

When we stayed in Europe last time, the proprietor of the establishment at which we were staying was trying to pressure us into going to the bank and withdrawing cash from our cards in order to pay for our stay, despite the fact that they had indicated that they take credit cards. When I pressed them about this and told them that I would not feel comfortable carrying that much in cash (I didn't mention the fact that the bank would add on their accessorial fees and costs to convert, yadda yadda, for which we would be responsible) she admitted that the fee they would have taken from them for the transaction would be 3%. I then told her to add 3% to our bill to cover the "loss" because I knew I was most certainly not going to be penalized any less than that for drawing from a bank ATM abroad. She still didn't seem too happy, but complied. I later learned that the agent through whom we booked the stay was overly eager to receive his dividend and didn't want to have to wait the extra days for the transaction to go through to get his cash in hand.

If you ever wonder "Why?" more often than not, just follow the money. What a motivator!

[jsfountain]

I live in France (i am american). I noticed that no one here has credit cards. They all use debit cards that are tied to bank accounts. No one has need for credit in france. They do not believe in that system. There are stores here that do their own credit card for their particular store. But the card is good for only their stores; not for purchases elsewhere. And all these stores' cards are tied directly to your bank account. Again, the french (i would even say europeans) do not believe in running up debt. It's a good concept. You can not get credit cards here.

I think it is fast becoming only an american system. It's convenient but most people who have them do not use them responsibly. Meaning, most americans carry huge sums of debt on their cards. I know i did back when i lived there.

So that said, it's not surprising that you see merchants over in europe not taking credit as much as they used to (their only business with the cards comes from americans). Besides, the dollar is weak against the euro and is no longer the power currency it once was over here.

[Ultrarunner]

Thanks for the replies...

I just received my MasterCard statement and most of my charges relate to my rental car and fuel... Gas Stations seem to have no trouble with Credit Cards.

I too was told several times to go to a bank, use my card for a cash advance and then return with cash... in all instances I declined...

At one establishment, the owner actually said I would have to walk quickly because the Bank was closing shortly... running to banks is not how I picture spending my time in Europe.

One positive for me is that I definitely curtailed my spending... I never went to a bank and I brought all of my Dollars back home with me to the states... I found that I could manage quite well on the 200 Euros I had left over from my previous trip.

In retrospect, my only issues concern Businesses that display the Visa and/or MasterCard logo and then refuse or begrudging accept it. It only breeds ill will and resentment to do otherwise.

I did leave a 10% tip at the one restaurant that graciously accepted my card. The owner gave me his business card and said that he would be more than happy to accommodate any future business meetings that I may need.

Americans use Credit Cards because of safety and convenience and in some instances to finance purchases. If my card is lost or stolen my liability is capped at $50, if I loose my cash... it is lost.

I may need to look into opening a foreign Bank Account, but I'm sure there are all kinds of reporting requirements involved and isn't there a line on your IRS 1040 Tax Return asking if the Tax Payer has any overseas accounts?

[Threestep]

Originally Posted by Ultrarunner

Thanks for the replies...

I just received my MasterCard statement and most of my charges relate to my rental car and fuel... Gas Stations seem to have no trouble with Credit Cards.

I too was told several times to go to a bank, use my card for a cash advance and then return with cash... in all instances I declined...

At one establishment, the owner actually said I would have to walk quickly because the Bank was closing shortly... running to banks is not how I picture spending my time in Europe.

One positive for me is that I definitely curtailed my spending... I never went to a bank and I brought all of my Dollars back home with me to the states... I found that I could manage quite well on the 200 Euros I had left over from my previous trip.

In retrospect, my only issues concern Businesses that display the Visa and/or MasterCard logo and then refuse or begrudging accept it. It only breeds ill will and resentment to do otherwise.

I did leave a 10% tip at the one restaurant that graciously accepted my card. The owner gave me his business card and said that he would be more than happy to accommodate any future business meetings that I may need.

Americans use Credit Cards because of safety and convenience and in some instances to finance purchases. If my card is lost or stolen my liability is capped at $50, if I loose my cash... it is lost.

I may need to look into opening a foreign Bank Account, but I'm sure there are all kinds of reporting requirements involved and isn't there a line on your IRS 1040 Tax Return asking if the Tax Payer has any overseas accounts?

There is a reporting agreement between US and EU. Both sides require Form W8. One line on your taxes, That is all.

[annielf]

I live in Scotland and rarely use cash. Most people here use debit or credit cards. Both have 'chip and pin' where you put in your pin number instead of signing. I've never had trouble using a credit card in Belgium or France, but can't speak for other European countries.