Types of credit cards in Germany explained

Four card types, one crucial difference

In everyday language, almost any card with a Visa, Mastercard or American Express logo is called a “credit card”. In fact, there are four card types behind the name, and they differ above all in one respect: when the money leaves your account. This determines whether you get a credit line, whether you risk paying interest, whether the bank checks your record with SCHUFA, Germany's main credit bureau, and whether a hotel or car rental company will accept the card for a deposit.

In our comparison, genuine credit cards and debit cards each make up around a third of the cards, and charge cards just under a quarter; prepaid cards are the exception. You will find the card type on every card page under “Billing”.

Genuine credit card: a credit line with an optional instalment plan

With a genuine credit card, the bank collects all your transactions for the month and bills them together. You can pay the full amount or just a minimum payment; the rest becomes a loan that accrues interest. In our comparison, all genuine credit cards offer this instalment option (Teilzahlung), with effective annual interest rates (APR) ranging from around 10% to just under 26%.

Used correctly, a genuine credit card is still cheap: if you set it to full payment, you get an interest-free payment deferral until the direct debit date and pay no interest. Many free credit cards are of this type – they earn their money from customers who use the instalment option. So once you receive the card, check that full payment is set.

Charge card: payment deferral without the interest trap

A charge card works like a credit card without the instalment option: your transactions are added up and the full amount is taken by direct debit once a month. So you have a credit line and a payment deferral of a few weeks, but you cannot build up interest-bearing debt.

Charge cards include the cards from American Express, but also many classic bank credit cards issued with a current account. Because the credit line is real, charge cards are generally accepted for hotel and car rental deposits. The bank checks your creditworthiness before issuing the card, because it advances the money for your purchases until the direct debit.

Debit card: Visa Debit, Mastercard Debit and Girocard

With a debit card, every payment is taken directly from your current account, either immediately or within a few days. You can only spend what is in the account – plus any overdraft (Dispo) you have been granted. That gives you full control over your costs and protects you from card debt.

There are two kinds: the Girocard (formerly called EC card) runs on the German Girocard system and works mainly within Germany. Visa Debit and Mastercard Debit cards, on the other hand, have a card number with an expiry date and security code (CVC) and work online and almost anywhere in the world where Visa or Mastercard is accepted. Since Mastercard stopped issuing new Maestro cards in 2023, many banks have been issuing a Visa or Mastercard debit card with their current accounts.

Just under half of the debit cards in our comparison work without a SCHUFA check, many of them with their own account and a German IBAN. Debit cards have their limits when it comes to deposits: many car rental companies do not accept them, and where they do, the security amount is blocked directly in your current account.

Prepaid card: spend only what you have loaded

You have to top up a prepaid card before you can use it, for example by bank transfer. Payments come exclusively from the balance; going into the red is not intended. That is why most providers do without a SCHUFA check and proof of income.

Prepaid cards have become less common, because debit cards from online banks offer the same advantages – no SCHUFA, no debt – usually without the top-up step and with a current account of their own. With prepaid cards, watch out for top-up, account management and inactivity fees, and bear in mind that they are often not enough for car rental and hotel deposits.

Which card type suits whom?

The right card type depends on what you need the card for. That is why many people combine two cards: a debit card for everyday use and a free credit or charge card for travel and deposits.

Acceptance and networks

Visa and Mastercard are the most widely used payment networks in the world; the vast majority of merchants, online shops and ATMs accept them. For you as a customer, the difference between the two is small – what matters are the terms of the bank that issues the card. In Germany, American Express is accepted less often, especially by smaller merchants; if you use an Amex card, carry a Visa or Mastercard for everyday purchases as well.

Debit cards on the Visa or Mastercard network work smoothly at most terminals but reach their limits with deposits: car rental companies and many hotels block a security amount and often require a card with a credit line for it. When travelling, it is therefore worth carrying a genuine credit or charge card as well.

Frequently asked questions about credit card types

Is a Visa Debit or Mastercard Debit card a credit card?

Not in the strict sense. It runs on the Visa or Mastercard network and works online and abroad like a credit card, but it takes every payment directly from your current account and has no credit line of its own. That is why it is often not accepted for car rental and hotel deposits.

Can I pay in instalments with a charge card?

As a rule, no. With a charge card, the monthly statement is collected in full – which is exactly what protects you from instalment interest. If you occasionally want to pay in instalments, you need a genuine credit card – or, better still, an instalment loan with a lower interest rate.

Which card type can I get without a SCHUFA check?

Debit cards from online banks and prepaid cards are the easiest to get. Genuine credit and charge cards almost always require a credit check, because the bank advances the money for your purchases. In our comparison, you can filter specifically for cards without a SCHUFA check.

Can I tell the card type from the card itself?

Often, yes: debit cards usually have “Debit” printed on them. Whether it is a genuine credit card with an instalment option or a charge card, however, you can only see in the contract terms – or on the card's page in our comparison under “Billing”.