The various types of payment cards differ in terms of how and where they can be used, the costs that arise for using them and when purchases are charged to your account.

Girocards

When you use a girocard to make payments or withdraw cash from an ATM, the amount is charged to your account immediately. You can obtain a girocard from the bank where you have your current account. Such cards are still often referred to as an “EC card” (EC-Karte), which was the predecessor to the girocard. Some credit institutions have their own product names for these cards, e.g. the Sparkassen-Card offered by savings banks.

What can girocards be used for?

In Germany, girocards can be used to withdraw cash at all ATMs and to pay in a large number of shops. Girocards are more commonly accepted than credit cards within the German retail sector. However, they cannot be used directly for online shopping.

The girocard payment system is specific to Germany and such cards can therefore usually only be used abroad with the assistance of the Maestro or V-Pay international payment systems. Before you travel, you should therefore enquire with your bank as to whether your girocard will be accepted in your destination country. This is particularly important if you are travelling outside the EU. It may be necessary to have your card unlocked before you can use it in other countries.

What does using a girocard cost?

Girocards are often provided free of charge together with current accounts. Depending on your bank and account model, however, there could be monthly or annual fees.

In Germany, cash withdrawals using a girocard are usually free of charge at the ATMs operated by your own bank or its group of banks. However, some banks charge fees for withdrawals for certain account models. Fees are almost always charged for cash withdrawals from the ATMs of other banks.

Depending on your bank and account model, cashless payments with a girocard may also be subject to fees.

Even if your bank’s schedule of prices and services lists girocard usage as free of charge, charges may nonetheless apply. You should check whether your bank or savings bank imposes charges for certain transaction types, such as paperless payments. If you are not certain, you should ask your bank or savings bank whether they charge for card payments

When abroad, using a girocard with V-Pay or Maestro functionality may result in additional costs. In most cases, a transaction fee is charged for each cash withdrawal and is paid to the bank that issued the card. Some banks, however, do not charge any fees. Other banks have partnerships with institutions in other countries so that you can withdraw cash from their ATMs free of charge. ATM operators might also charge fees and these can be very high in some cases.

How do I obtain a girocard?

Because each girocard is linked to a specific account, you will first need to have a bank account. You can obtain an application form directly from your bank or on its website. The basic conditions for using a girocard are the same for all cardholders.

Debit cards

Similarly to girocards, your account is charged immediately whenever you use a debit card from a major credit card provider to withdraw cash or make payments. Debit cards are sometimes inaccurately referred to as credit cards because they can be used in a similar manner.

Strictly speaking, girocards are also a form of debit card and are also sometimes referred to as such. However, in most contexts – and for the purposes of this article – the term “debit card” refers to payment cards that combine the features of girocards and credit cards.

What can debit cards be used for?

In Germany, you can use your debit card to withdraw cash from almost all ATMs and to pay in a large number of shops. Debit cards can be used in the same way as credit cards when shopping. They are less commonly accepted than girocards within the German retail sector. In contrast to girocards, however, they can additionally be used for online shopping.

Like credit cards, they are more commonly accepted than girocards outside Germany. This is particularly important if you are travelling outside the EU.

You might face limitations if a credit card is required to pay a deposit, e.g. when renting a car or booking a hotel room. It is not always possible to do so with a debit card.

What does using a debit card cost?

Debit cards are often provided free of charge together with current accounts, especially in the case of direct banks. Depending on your bank and account model, however, there could be monthly or annual fees.

Whether there are any fees for withdrawing cash in Germany depends on the card provider and the account model you have selected. ATM operators might also charge fees for withdrawals with debit cards.

When abroad, using a debit card to withdraw cash or make payments may result in additional costs. In some cases, withdrawals within the eurozone may be free of charge while fees are imposed for other currencies. ATM operators might also charge fees.

How do I obtain a debit card?

Like girocards, debit cards are linked directly to an account. This means that you first need to have a current account. Not all banks offer debit cards for current accounts. They are, however, usually offered by direct banks.

Credit cards

A credit card enables you to make payments and withdraw cash from ATMs around the world up to a credit limit agreed upon with your bank. In contrast to girocards and debit cards, credit card transactions are not charged to your current account immediately upon payment. The individual payments instead accumulate on your credit card account and do not have to be settled until a later date.

Prepaid credit cards are an exception here because they can only been used after money has been paid into the credit card account. This means that prepaid credit cards could be a suitable option for minors, e.g. when travelling abroad or going on a school exchange.

What can credit cards be used for?

In Germany, you can use your credit card to withdraw cash from almost all ATMs as well as to pay online and in a large number of shops. Within the retail sector, however, they are less commonly accepted than girocards. Simply look out for the logo of your credit card company.

Credit cards are very widely accepted abroad. The cards offered by major providers can be used in almost all countries around the world. If you have any doubts, enquire about whether you can use your credit card in your destination country before you travel.

What does using a credit card cost?

Banks that issue credit cards usually charge a monthly or annual fee. There is a large variety of credit cards on offer and major differences exist between the additional services provided. These could include, for example, travel insurance and other travel benefits. Such cards are often referred to as “gold credit cards” and therefore have higher annual fees.

Banks that issue credit cards often charge fees for cash withdrawals in Germany. These fees can be high. Furthermore, ATM operators might charge fees for withdrawals using a credit card.

Withdrawals and payments abroad are often cheaper with a credit card than with a girocard and are even free of charge with some providers.

What types of credit cards exist?

The various types of credit cards on offer often differ in terms of how cardholders are billed.

The most common form of credit card used in Germany is the charge card. At the end of the billing period, usually each month, the cardholder receives a statement listing all the amounts charged. The cardholder then has to settle the bill with a single payment. The card issuer usually charges the amount due to the cardholder’s current account via direct debit. At this point, you need to have a sufficient balance in your account. The issuer may block the card if the outstanding amounts from credit card transactions cannot be transferred from your current account due to insufficient funds. You should therefore always make sure that you have sufficient funds and keep an eye on your expenses. Debit interest is not charged until the agreed payment date. Similarly to a current account, this type of credit card also has an overdraft facility that is usually agreed upon with the provider.

In the case of revolving credit cards, the cardholder also receives a statement listing all amounts charged at the end of the billing period. Cardholders are themselves responsible for settling any outstanding balances within the agreed timeframe by transferring the funds from their current account. If the cardholder does not transfer the amount due, the card-issuing bank will only debit a small portion of the outstanding amount from their current account, leaving the remaining amount on their credit card account.

If the cardholder has still not transferred the amount by the subsequent payment date, only another small portion of the outstanding amount will again be debited from the cardholder’s current account. The repayment of one single purchase can therefore take a number of months. These cards thus provide both a payment function as well as a financing facility for purchases. Such cards – also referred to as credit cards with a minimum payment (Kreditkarten mit Teilzahlungsfunktion) – can prove to be very expensive because they can potentially entail high fees, interest payments and other costs.

How do I obtain a credit card?

You can apply for a credit card at a wide range of banks. Companies within the mobility sector as well as other segments of the economy also offer their own cards in cooperation with credit institutions. Information and advice can be obtained from providers at their branches, online or by telephone.

Before making a choice, you should consider the context in which you intend to use the card most frequently and find out what the associated services, costs, fees and conditions are. Read all of the general terms and conditions carefully before deciding on any individual product.

How are card providers supervised?

Credit institutions domiciled in Germany that issue credit cards require authorisation from BaFin. German banks are supervised by the Deutsche Bundesbank and BaFin and, if they exceed a certain size, by the European Central Bank (ECB) within the scope of solvency supervision.

BaFin does not assess whether credit institutions offer you favourable conditions for your card or whether the fees charged for using it are reasonable. BaFin is also not responsible for checking the contractual provisions.

In the case of foreign issuers that are not subject to German supervision, you may experience limitations. For example, complaints might only be accepted in the local language or there may be different legal requirements and liability limits than in the case of German providers.