European Stars And Stripes (Newspaper) - February 28, 1986, Darmstadt, Hesse                                Sis photo by Tracy Baker th9 credit card will soon makes its debut at Exchange stores overseas. The interest can vary it s in your Best interest to know How the fee for your credit card account Are  first item to Check is the Grace  s the time Between the Date of your Purchase and the Date the Bank starts charging interest. Some Start charging immediately others hold off for 30 Days. It makes a difference. Assuming an18 percent interest rate a 30-Day Grace period on a $500 Purchase can save you $7.50 in interest. You also should Check on which method is used in calculating your balance. Using an annual percentage rate of 18 percent does not always mean payments of 1.5 percent per month on the balance. There Are three different ways to calculate the balance. Ii you keep an outstanding balance on your account month alter month As about 50 percent of card users do it makes relatively Little difference which balance method is used. It can make a difference though if you generally pay your charges in Lull each month and there is no Grace period. The adjusted balance or closing balance method is the most economical or the consumer. The finance charge is calculated on the unpaid balance of the previous month less credits say Lor returned merchandise and payments made in the current month. The previous balance method gives no credit for payments made during the Billing period. Finance charges Are based on the amount owed on the final Billing Date of the previous month before any payments or credits Lor returned merchandise have been recorded. The average balance method adds together your balances at the end of each Day then divides that total by the number of Days in the Billing period and multiplies it by the monthly interest rate. Under this method the longer payment is delayed and the higher the average daily balance the higher the finance costs. Here s How it works out in dollars under the adjusted or average daily balance method the finance charges on a Bill of $800 run up Over a period of six months would be somewhat More than $14. Under the previous balance method it would be $23.44, or 67 percent More. All these methods Are Legal in most slates. They Are also in compliance with the disclosure requirements of the truth in lending act. Make sure the Bank you Deal with is not one of those which impose a finance charge even if you pay your Bill immediately to avoid interest fees. Turn Down any charge card that involves such a penalty. Ii you always pay in Lull each month you probably would be belter Oil with a travel and entertainment card instead of a Bank issued credit card. Card carriers Are Europe s super shoppers p Lastic Money is catching on finally  comparison to the United states where Many people have up to six cards the movement in Europe is still in its infancy but it already is a Means of payment that has to be reckoned with. The German newsmagazine Der Spiegel reports that customers who carry credit cards Are Well received and Are considered super shoppers who have the Money to pay. To attract More customers the card companies the German euro card. British Access and american Mastercard visa diners club and american express Are involved in powerful advertising campaigns promoting worldwide  with a goal of 80,000 new members. American express which already has the largest european membership plans to spend 20 million Marks in Germany alone for ads this year. Diners club which used to be in first place and now is Down to no. 3 following euro card is planning a vigorous Campaign to regain its standing. Visa has come into the picture somewhat late but already is doing Well. Faced with the surge of plastic Money Many retailers Are complaining that the service is too expensive. In Geneva the textile retailers passed a Resolution vowing to Force the credit card firms to dramatically lower their rates. Ii they wont the textile retailers plan a Boycott. European stores that accept the cards pay 3.5 percent to 6 percent commission on sales to the card companies. That can add up. Take Lor example the Hamburg based Karstadt department store Chain. It did 6 million Marks in card sales last year. From this. 200,000 Marks went to the card companies As commission. Retailers complaints that the card companies Are cutting into their profits probably Ere futile. In Germany More than 60,000 hotels restaurants and shops now accept one or More cards and each month around 1,500 More businesses Are added to the list. In City centers it is difficult to find a retailer who refuses to accept them. You can t fight it complains the owner of one store. When Competition in the neighbourhood begins taking the cards others have to quickly follow suit. Those who Don t lose part of their customers. But he complains the profit from the customers who Are not lost and who pay by card is quickly eaten by the amount that must be paid the card  such criticism does t bother the card firms none of which has plans to lower Lees. In a Story last september by Clint Swift of the stars and stripes Washington Bureau. Army a. Gen. John Long commander of the army and air Force Exchange service was quoted As saying the exchanges will absorb the 2 percent sew ice charge for credit card use. Long said prices will not increase because of the acceptance of credit cards. The stars and stripes Page 15 v 26. 1986