European Stars And Stripes (Newspaper) - February 28, 1986, Darmstadt, Hesse                                Credit cards the american Way comes to Europe stories by Mary Neth staff writer soon you la be Able to pay with credit cards at the pm. Cafes customers in the United states Are already Able to use visa or Mastercard when shopping. The credit cards May be introduced in european stores As Early As next month but certainly by the Middle of the year. The use of the cards was approved oct. 3 by the morale welfare and recreation panel of the House armed services committee s subcommittee on readiness. Officials of cafes the nation s seventh biggest retailer expect credit card use to make up 15 percent of its total retail sales. How Many customers will be Able to take advantage of this Type of shopping according to an cafes Survey More than 50 percent of Exchange shoppers worldwide already use credit cards. This includes 80 percent of career service members in pay grades e-5 and above and 13 percent of individuals in pay Grade e-1. Cafes. Will encourage Banks and credit unions to Grant credit cards to lower ranking customers. All main stores garages Auto parts stores military clothing sales stores and specially shops will accept the cards. They wont however be taken at food shops Heaters for Gas at service stations or for and Beauty shop service. The layaway program and deferred payment plan be continued. The deferred payment plan offers credit at about 12 percent compared to the 16 percent or More required with Many cards. Don t Bank on the rates any Consumers seem to believe that a visa card is a visa card is a visa card that whatever rate your Bank charges is the one and Only rate. Not True. Individual Banks set the terms and conditions of the credit cards they Issue which Means it can pay to Check around for the lowest rates. Keep in mind that a Bank that issues you a card is not doing you a favor. Your card ownership Means profitable business for them. Lenders in the United states raked in close to $12.6 billion in interest at 18 percent on $70 billion Worth of outstanding revolving credit in 1983. Issuers of the five major cards american express carte Blanche diners club Mastercard and visa collected another estimated $3.4 billion in annual fees. On top of that they received from 1 percent to six percent of the Dollar value of the items purchased with the cards from the merchants who did the Selling close to $4 billion. Your Best bet is to get a card through a Bank credit Union or savings and loan in the states. The Cost of the cards is less there. In Germany for example the yearly charge for an american express card is 120 Marks or $52 at 2.30 Marks to a Dollar compared to $35 in the United states. The Elys of free credit cards in the United states however Are pretty much a thing of the past. Most Banks charge annual rates that Range from $15 to $55 Only a few charge no fee at All. First though Yog should decide on the Type of credit card you want. There Are three varieties travel and entertainment Bank issued credit and debit cards. Generally the travel and entertainment cards american express diners club carte Blanche require that you pay off the whole balance when the Bill comes. There is no interest charged when you do but there is an annual fee. When you do run up an unpaid balance. Interest of 18 percent is charged by american express and 19.8 percent on both the diners club and carte Blanche cards unlike the travel and entertainment cards you can expect to pay interest on Bank issued credit cards visa and Mastercard. The interest is on the outstanding balance of the line of revolving credit extended to you. Debit cards Are tied in with your stateside t account. You can use them like a charge card but ii Don t allow you to spend More than you have. Debit cards Don t offer Many advantages. They draw n from your Bank account quickly so you get no time a advantage. They Are of no use in protesting a Boffl As a cancelled Check and if you lose the card you Are worse off than if you lose a credit card. With thelast two your liability is generally limited to $50. A debit car def loss must be reported within two business Days to t limited to $50, otherwise it is $500. As to obtaining a card you la find that Banks Van considerably on the amount of income they r so Don t get discouraged if one turns you Down another May just accept you. The Premium cards of course require a higher income. You need an income of $20,000 or a crts american express Gold card from $18.000 for diners club and carte Blanche from $22.000 to $100,000 for a Premium visa or Mastercard the Premium cards give status and a higher credit i " do you really want to borrow at charge card ,1 can get a personal loan for much less. " Cost of the cards varies. Here is How visa and Mastercard interest costs and card fees vary at r Banks "1. Bank of California san Francisco. 21 percent interest and $20 fee for residents of California we Oregon. 18 percent interest and $20 annual i " Washington residents Central National b percent interest. $20 fee Citibank. 19.8 p. Interest $20 fee Chase Manhattan 19.81 Page 14 the stars and stripes interest $20 fee Wells Fargo Bank. Catl Taslo 20" percent interest $18 fee United Missouri banfc22 percent no fee Commerce Bank. Missouri. 22 i percent $25 fee. I Friday