Debit Cards in Germany: What to Consider?

Debit cards offer a convenient and widely accepted payment option in Germany and worldwide. They combine the advantages of the traditional Girocard with the international acceptance of credit card organizations like Visa or Mastercard. However, not all debit cards are the same – there are several important factors to consider when choosing one.

What is a Debit Card?

Like the Girocard, debit cards from major credit card organizations immediately deduct payments or cash withdrawals from your bank account. In most cases, apart from a few exceptions, debit cards are issued in conjunction with a current account and cannot be requested separately. The card is directly linked to the current account, and transactions made with the card result in an immediate debit from the account. Debit cards are often colloquially referred to as credit cards because they can be used similarly, but they do not provide an actual credit line.

Strictly speaking, the Girocard is also a debit card, as payments are directly debited from the bank account. However, in common usage, a distinction is often made between Girocards and international debit cards. In Germany, debit cards are usually those issued by Visa or Mastercard, while Girocards (formerly known as EC cards) use a local proprietary card network, which generally limits their usage to Germany. In some cases, they can still be used in other EU countries, but overall acceptance outside Germany is low.

What Can I Use a Debit Card For?

In Germany, you can use a debit card to withdraw cash from most ATMs and make purchases in many stores. However, compared to the Girocard, acceptance in brick-and-mortar retail stores is not yet universal. A key advantage of debit cards over the Girocard is the ability to use them for online payments.

Abroad, debit cards often have higher acceptance than the Girocard, especially outside the EU. They enable payments in foreign currencies and are often a good alternative to a traditional credit card.

Limitations: There are situations where debit cards may not be sufficient. For example, car rental companies or hotels often require a credit card for security deposits. Some providers accept debit cards, but it is advisable to check in advance.

What Costs Are Associated with Using a Debit Card?

A debit card is often provided free of charge with a current account, especially by online banks. However, some banks charge an annual or monthly fee for the card.

The following fees should be considered:

• ATM withdrawals: Fees may apply in Germany, depending on the account model and ATM provider. Some banks offer free withdrawals at their own or partner ATMs.

• Fees abroad: Payments and withdrawals abroad may incur charges, especially outside the Eurozone. Some banks charge a foreign currency fee or a percentage fee on withdrawal amounts.

• Other fees: Some banks charge for replacement cards, card delivery, or certain transactions.

Key Criteria When Choosing a Debit Card

When comparing debit cards, various factors should be taken into account:

1. Acceptance locations: Which stores, online shops, and countries accept the card? As long as the card is either Visa or Mastercard, this shouldn’t be an issue, given that Visa and Mastercard mostly have equal acceptance at the payment locations.

2. Cost structure: Are there monthly fees, withdrawal fees, or foreign currency fees?

3. Additional features: Some debit cards offer cashback programs, insurance, or other perks.

4. ATM network: Can withdrawals be made for free or at a low cost at specific ATMs? It really depends on access to ATMs. Some banks offer free withdrawals only at their own ATMs, while others provide free withdrawals within a partner network. Some banks even allow free withdrawals at any ATM. It’s also important to consider the number of free withdrawals allowed and the expected usage, as many banks impose limits on the number of free withdrawals under a 'fair usage' policy.

5. Security: Are modern security features available, such as two-factor authentication or temporary card blocking via an app? The ability to change the card PIN should also be considered, as not all banks allow this flexibility, and some require customers to visit a branch or use specific ATMs for PIN changes.

6. Credit card replacement: If you don’t have a traditional credit card, check whether your debit card is accepted for deposits at hotels or car rental companies.

How to Get a Debit Card?

Debit cards are linked to a current account. When opening an account, customers usually receive a debit card automatically. Some banks offer multiple card options, including a Girocard, international debit cards, or even optional credit cards.

Not all banks issue debit cards. While online banks often provide Visa or Mastercard debit cards, many branch banks still primarily offer the Girocard.

Conclusion

A debit card is a flexible payment solution for everyday use and travel. When comparing different options, acceptance, fees, and additional features should be considered. Those who frequently travel abroad or shop online should pay particular attention to foreign currency fees and the worldwide usability of the card.