Cash Remains the Preferred Payment Method in Greece

Cash Remains the Preferred Payment Method in Greece: Insights into Consumer Habits.

Cash Remains the Preferred Payment Method in Greece: Insights into Consumer Habits

Fees and Charges

Recent legislation has aimed to reduce banking fees in Greece, particularly those associated with ATMs. Many people have found the charges to be so high that they chose to abort their transactions. According to a report, 32% of Greeks have cancelled transactions due to these fees, while 37% completed transactions simply because there were no other options available. The new measures will eliminate fees for cash withdrawals from ATMs located in remote areas where no alternative machines are available. Prior to these changes, fees could be considerable, causing frustration for users seeking convenient access to their cash.

Digital Payments

Greece has witnessed a notable rise in the use of digital payment methods. While cash remains prevalent, especially for small daily transactions, the acceptance of electronic payments is growing. With advancements in technology and changes in consumer behaviour, contactless payments, debit cards, and digital wallets have become more common. Payment solutions like Apple Pay and Google Pay are increasingly popular, allowing customers to complete purchases online or in stores with ease. This shift towards digital payment options is not only convenient, but also aligns with broader trends observed across the eurozone.

The ECB’s Stance on Cash

The European Central Bank (ECB) has maintained a supportive position regarding cash as a payment method. Despite the upsurge in electronic payments, many individuals in Greece still favour cash due to its perceived benefits. Factors influencing this preference include the anonymity of cash transactions, immediate settlement of payments, and a greater awareness of spending. In recent surveys, a significant number of Greeks cited these advantages when discussing their payment choices. Additionally, the ongoing usage of cash for tax avoidance and other illicit activities further underscores its enduring role in the economy.

Preferred payment methods by country (ECB)

Frequently Asked Questions

What payment methods are commonly accepted in Greece?

In Greece, visitors will find that both cash and cards are accepted in most places. While larger establishments like hotels and restaurants often support credit and debit cards, smaller shops, markets, and local vendors typically prefer cash. It is advisable to carry a mix of both to ensure convenience.

How much cash should one carry while visiting Greece for two weeks?

For a fortnight in Greece, it is sensible to carry enough cash for daily expenses. A common suggestion is to have between €50 to €100 per day, depending on personal spending habits. This amount can cover meals, small purchases, and other miscellaneous expenses.

Is it feasible to use debit cards throughout Greece?

Debit cards are generally accepted in major cities and tourist areas; however, rural areas and small businesses may not support card payments. It is wise to always have some cash on hand, especially in less populated regions.

Which credit cards are commonly accepted in Greek businesses?

Visa and MasterCard are the most widely accepted credit cards in Greece. American Express is less frequently accepted, so it is prudent to have a Visa or MasterCard for transactions in shops, restaurants, and hotels.

Is cash preferred over cards for transactions in Greece?

Yes, cash is still the favoured payment method in many parts of Greece. Despite the rise in card acceptance, especially with newer laws, cash remains popular for smaller purchases and in villages where card facilities may not exist.

What is the best way to carry money while visiting Greece?

When visiting Greece, it is advisable to carry cash discreetly and in different places, such as a wallet and a safety belt. This reduces the risk of theft. Using a combination of cash and cards can help ensure access to funds when needed, while being mindful of safety and convenience.

Cash Remains the Preferred Payment Method in Greece