Were paid indulgences compulsory prior to the Reformation? Luther's 95 Theses were a refutation of selling indulgences on the part of the Catholic Church.  Did he, or others, believe that the Church was saying that:

The only way to be a good Christian was to purchase an indulgence
Were indulgences a public or private matter (I mean, did you show them off)?
The sale of indulgences was a benign form of alms giving
The sale of indulgences were a form of extortion by the Catholic Church
The only way to assure one of salvation was through the purchase of indulgences
Neglecting the purchase of indulgences assured one's soul of eternal damnation

How did Luther's viewpoint compare to that of the common man?
When the 95 Theses were first published, Luther actually supported the idea of indulgences:


  #75. Let him be anathema and accursed who denies the apostolic character of the indulgences.


The problem was that


They were being "sold" (you had to donate to get one, actually selling them had been excommunicable for something like 100 years at that point)
They were being treated as a "get out of jail free" card (people were saying that they did not need confession because they had indulgences).
He did not see why the Pope didn't simply empty purgatory.


It was not commonly taught that:


"Neglecting the purchase of indulgences assured one's soul of eternal damnation". Indulgences have to do with purgatory, not hell. If that is something which the Catholic Church has been accused of, then it is something which only happened recently.
"You were not a good person if you didn't buy." There is no real record of this position either. Indulgences had to do with forgiveness. Theoretically, a person who was good enough should not need them.


As far as showing them off, well, they were on pieces of paper, so people could. I don't really know why you'd want to though... it's a proclamation that you've sinned.