If the purchase amount does not exceed 10 euros, the Germans prefer to pay in cash. In other cases, bank cards are used, cashless payments for which are popular and available throughout the country. Modern bank cards in Germany are mainly national and valid on the territory of the European Union. It is not always possible to use the products of Russian banks and non-EU countries.
Features of the banking system in Germany
To date, a three-tier banking system has developed on the territory of the Federal Republic of Germany, consisting of:
- German Federal Bank;
- commercial banks and government savings banks;
- microfinance organizations.
Deutsche Bundesbank is a German federal bank operating since 1957 and is the successor to the Reichsbank. Its functions include the implementation of monetary policy and banking supervision. It is merged with nine banks of the federal states, which in turn are the main banks for savings banks.
Commercial banks in Germany are:
- banks of regional significance (Regionalbanken);
- direct banks that do not have offices and work with clients remotely (Direktbanken);
- construction savings (Bausparkassen);
- savings bank (Sparkasse);
- cooperative banks (Genossenschaftsbanken);
- postal bank (Postbank).
Microfinance organizations in Germany are a variety of credit cooperatives, regional societies and associations.
Most German banks are universal.
More about the banking system in Germany.
Varieties of national bank cards in Germany
You can almost always pay for purchases and services on the territory of Germany with one of the following local cards:
- Electronic Cash (Girocard);
- GeldKarte.
- Electronic Cash or Girocard are names for the same type of plastic media. They are linked to the debit Girokonto (giro account). Such an account is opened in most banks free of charge. In this case, the owner may set restrictions on the amount of funds withdrawn from the account per month. No interest will be charged for debiting operations. The calculation takes place instantly.
When opening a bank account, the card is issued free of charge. Its restoration will also not require any costs, however, a new card and PIN-code will be sent only to the address that you specified when concluding the contract. To make it possible to pay with an EU card outside the country, it is combined with international payment systems, most often with Maestro (MasterCard). EC is the most widespread type of payment cards in Germany. - GelKarte are popular German bank cards, the balance of which is recorded directly in the chip. Thus, they are a cross between a standard debit card and an e-wallet. GelKarte are of two types: linked to an account and not linked (White Card).
The possibilities of cards linked to the account are wider:
- they can be replenished not only through terminals, the Internet, in cash or through credit / debit cards, but also by debiting from a bank account;
- with their help, you can confirm your age;
- they can be used as an electronic signature;
- you can store bonus points and e-tickets on a plastic carrier;
- time and staff access can be checked through the card.
On the territory of Germany, local Electronic Cash (Girocard), GeldKarte cards are widespread, and from international, if necessary, it is better to use MasterCard.
Which foreign bank cards can be used in Germany
Plastic cards VISA, MasterCard, American Express are not widely used and are rarely accepted wherever. This applies to both Russian and other foreign cards - debit or credit. It is impossible to determine in advance whether your card is accepted in Germany or not.
Moreover, it does not matter either the status, balance / credit limit, or currency.
Even a large supermarket can refuse to pay for purchases through plastic media.
Despite the fact that Sberbank, UniCredit Bank, Tinkoff Bank and other banking institutions offer quite convenient credit cards for use abroad, in Germany there may be a problem even with them.
What is better to take with you to Germany - VISA or MasterCard
If you choose between VISA or MasterCard payment systems, then it is better to take a MasterCard credit or debit card to carry out transactions in the Federal Republic of Germany.
There are three reasons for this:
- if the account currency is not US dollars or differs from the one with which you pay, VISA gives banks the opportunity to withdraw up to 2% commission for each operation;
- MasterCard commission in the same bank will almost always be lower than VISA commission or absent altogether;
- the conversion rate for MasterCard in the same bank is usually more profitable;
- if many outlets accept plastic media, then only Maestro (MasterCard).
Cash withdrawal from ATMs in Germany
German ATMs are integrated into a single network. It includes several groups of partner banks, cash withdrawals within which are not subject to commission. Using other ATMs will require a substantial transaction fee.
The largest ATM partner networks in Germany are:
- Sparkasse - approximately 25,700 ATMs;
- Volks und Raiffeisenbanken - approximately 19,600 ATMs;
- Cash Group (Postbank, HVB, CommerzBank) - approximately 9,000 ATMs.
It should be remembered that when using a third-party ATM or a foreign plastic card in Germany, a commission will be imposed not only on cash withdrawals, but also on checking the card balance. The commission can be from 0.75% or more of the amount of funds to be cashed. It is recommended to check the conditions in advance with your bank and on the websites / call-centers of German banks.
There are also universal terminals Geldautomat that accept plastic cards from most payment systems.
You can also withdraw money from them. However, many of these terminals only work with chip cards.
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How to pay with a bank card in a German store or cafe
It is best to use local EC or GeldKarte cards to pay at catering establishments; when you try to use a foreign plastic card, you will most likely get a refusal.
In addition, when planning a cashless payment, pay attention to the following points:
- is there a payment terminal in the establishment (in the cafe - a portable terminal);
- what is the minimum purchase amount - if it turns out to be less, you should pay in cash.
After paying through the terminal, you will be issued a check on which you will be asked to sign. In addition, you may be offered two payment options: in dollars or euros. In Germany, you should choose the euro so as not to overpay for the conversion.
Waiters and sellers in Germany complete the payment procedure in your presence, never taking the card with you, so you can fully control the process.
Payment by plastic card in Germany online
Online stores will offer you to pay by card through the Sofortüberweisung instant payment system or the Lastschrift system.
When paying for purchases with a card, the algorithm of actions is as follows:
- select a bank;
- enter your username and password to log into Internet banking;
- enter the authorization code (TAN), which can be sent in advance or during payment to your mobile phone;
- transfer funds to the seller's account;
- confirm the operation.
When paying through the Lastschrift system, you provide your debit account details (Girokonto), the funds from which are transferred to the merchant's account within a week.
Work in Germany with PayPal and eBay has its own peculiarities. If you have registered with PayPal in the Russian Federation, you will need to create a new account with a German address. On eBay, you will not only need to provide a new shipping address, but you will also need to link a new PayPal account.
If you link an account or card in euros for purchases in Germany, it is recommended to specify in the settings that payment is made in the seller's currency - this will help avoid paying a conversion fee.
Conclusions
Payment with foreign plastic cards on the territory of Germany in 2021 is not always possible and not in all retail outlets, even if we are talking about large supermarket chains. The best choice for a trip will be a Sberbank card in Germany or any other bank of the MasterCard payment system. When withdrawing cash by card, use ATMs of partner networks or the bank whose card you have in your hands. When paying, pay attention to the currency in which the calculation will be made: choose the euro so as not to overpay for unnecessary conversion.
If possible, open an account in a German bank and issue Electronic Cash (Girocard) or GeldKarte.
