Use of credit cards in the US really took off in 1980 when interest rates were deregulated[1], credit cards were then heavily promoted. I remember at that time, to use a credit card in a grocery store had a social stigma. But now, many people here rarely use cash.
What are the credit card interest rates in Germany? (In the US credit card interest rates can be 20-30%). Maybe there's less incentive to promote use of cards in Germany, or maybe transaction fees are regulated to make small transactions impractical?
I don't even know what is the rate on my credit card. I use it all the time. I just pay back the full amount every month. I think that's the best way to use it. You don't need to carry cash. You don't need to pay interest.
What was the social stigma of using a credit card at a grocery store?
I think I kinda remember some remnants of that when I got my first card and started using it to pay for everyday/trivial purchases. In fact, I remember the real reason for the wait in the line was were most folks taking time to write cheques. It was a lot like waiting for someone to count bus fare on the coinop.
There was a time when furniture stores, appliance stores, etc, provided credit directly. You could buy items from the store and make payments over time. Credit cards were seen as a generalized way to make these purchases, if you go far enough back in time.
Good point. So it was seen as not being able to pay in full for groceries? Despite the fact that bad cheques can kinda do the same thing as not paying the credit bill?
I would imagine however, that over time a personal reputation is gained for writing bad cheques. I guess the difference is whose problem it becomes: a credit agency, or the person who knowingly accepts a potentially bad cheque.
It's funny how we judge each other for using new tools.
What are the credit card interest rates in Germany? (In the US credit card interest rates can be 20-30%). Maybe there's less incentive to promote use of cards in Germany, or maybe transaction fees are regulated to make small transactions impractical?
[1] https://www.fdic.gov/bank/analytical/bank/bt_9805.html