2023-06-15 15:41:31
In France, you might be asked if you would like to pay by credit card when covering the bill at a restaurant, but in reality, this question is unlikely to be referring to credit cards in the sense that people from the United States or United Kingdom might understand them.
The term Bank cardsometimes also referred to a blue card or CB, is often used interchangeably with credit cardeven though they technically have very different meanings.
This is in large part due to the fact that credit cards are less common in France, and many French people get by without ever having one, so credit card has become almost a generic term to encompass all bank cards.
READ MORE: Everything you need to know about setting up a bank account in France
While it is possible to get a credit card (as Anglophones would understand the term) in France, there are a few other things to know about bank cards in France before you do so.
Debit cards
When opening your French bank account, you will likely be offered a debit card – which will deduct directly from your current account balance. As of 2021, the average cost in bank charges of a debit card was €30.23 per year. You might also hear this card referred to as a blue card. If you are curious as to whether this is the type of card your bank signed you up for, look no further than your own card: it should have the letters CB printed on it.
When using a French debit card, keep in mind that you could be subject to overdraft fees if you spend more than the amount in your current account. Additionally, some banks set limits on how much you are able to spend in one go, and many others have maximum spending caps per month too. However, if you know you have a big payment coming up, it’s usually a simple matter to ask your bank to lift the spending cap.
If you are asked about paying sans contactthis simply means tapping your card to the machine, rather than inserting it. Most debit cards in France have this feature.
Credit cards
It is possible to get a credit card in France, but their role is much more limited than in the United States or the United Kingdom.
You will usually need to apply for a credit card from your bank, and in all cases, you will need to be to at least 18 years old and have a valid form of ID.
While the the criteria are not public – and each bank may have different standards before authorising a credit card application – typically they will check to see if you have any outstanding payments or debts registered with the Banque de France’s National Register of Personal Credit Repayment Incidents (national file of Credit Reimbursement Incidents to Individuals).
Banks may also have specific standards regarding your monthly spending patterns, including whether you have a habit of over-drawing your current (debit) account. They may also require a certain minimum income, or justification for why you might want or need the credit card to begin with.
READ MORE: EXPLAINED: The best money saving options for foreigners in France
Different cards also have different benefits and drawbacks, including the annual fees charged by the bank – sometimes these can be upwards of €30 per month. American Express is less common in France, you are more likely to be offered a Visa or Mastercard credit card and some businesses won’t take American Express.
While in the UK and US you will likely be subject to a credit check if you want to make large purchases or rent an apartment, in France it’s less about your credit history and more about whether you have enough money – you’ll therefore likely be asked for proof of income such as payslips or tax declarations, and there are limits on spending, for example its standard practice that landlords will not rent to you if the rent is more than one third of your monthly income.
It’s a similar story if you want to get a mortgage and overall the emphasis is on ensuring that people don’t live beyond their means, rather than trying to load them up with debt in the form of loans and credit cards.
Deferred payment cards
If your bank refuses your request for a credit card, the other option is a deferred debit card.
They’re listed as a ‘credit option’ but they really just allow you to defer debit payments. Essentially, you can make your purchases throughout the month, but you will not be debited until the end of the month. Most banks will allow you to choose the date where you are debited.
This type of card can help you with budgeting, particularly if you have most of your expenses come on top of one another at a particular period in the month. It can also be a helpful tool for managing seasonal expenses, such as Christmas and other holiday periods.
However, you will need to be vigilant about not overdrawing your account. To do so, you can still track spending using a mobile App or personal banking space online.
Technically, these cards are marked “credit“, but even so, the amounts debited are not connected to interest charges. One primary difference is that this type of card is not linked to a cash reserve provided to the customer by the bank, but rather it is linked to your own current account.
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