The Difference Between Debit and Credit Cards in Germany

Most Germans have several plastic cards in their wallets. Although credit and debit cards look almost the same, they differ in their functions.

A debit card is a payment card for bank customers. Current accounts are often issued free of charge and without a credit check. These are usually cards from Mastercard or Visa. When you pay with a debit card in a shop, restaurant or other payment station, the money is debited from your account directly or very promptly. The same thing happens when you withdraw money from an ATM with such a card.

Immediate debits via debit card provide a good overview of the amounts spent. Domestically, the debit card is often a convenient payment method as most shops, online shops and payment stations accept these cards. However, this convenience can also lead to customers overestimating their financial capabilities and overdrafting the account. Then there could be high overdraft interest.

Credit cards are also payment cards. However, the bank grants the user a set withdrawal limit. When you pay with this card, the money is not deducted directly from your account. This usually only happens at the end of the month.

While debit cards are often available free of charge with a checking account, customers usually pay a surcharge for credit cards. Credit card payments are also accepted abroad. Many car rental companies or hotels require credit cards as a payment requirement, as these cards allow you to pay a cashless deposit for any damage to the vehicle or room. Debit cards do not offer this feature.

Both payment cards look similar: They contain the 16-digit card number, a check digit usually found on the back, the respective period of validity, a signature field and the name of the holder. You can often only tell the difference by looking at the “Debit” or “Credit” imprint, which can be found on the front or back of the card, depending on the issuer.

The EC card is the old name for the checking card, the main card of a checking account. Giro cards are German debit cards because when you pay with this card, the amount spent is immediately deducted from your checking account.

You can also withdraw money from ATMs using a debit card. However, mostly only within Germany. The debit card is a German system that only works with the corresponding ATMs and payment terminals. In some neighboring countries such cards sometimes work, but not always.

To ensure that customers do not need a second card for payments abroad, many banks have equipped their checking cards with additional functions from payment service providers. These are usually V-Pay (from Visa) or Maestro (from Mastercard).

However, many banks have stopped issuing Maestro cards from July 2023. However, cards that have already been issued generally continue to function normally until the end of their validity.