Germany Credit Cards

In Germany, credit cards are not the most popular means of transaction in the country. However, credit card issuers offer a range of rewards to customers in order to promote credit card usage.

In Germany, credit cards are not the most popular means of transaction in the country. However, credit card issuers offer a range of rewards to customers in order to promote credit card usage.

Germany Credit Cards

In Germany, credit card usage is exceptionally low in contrast to other European countries. Most German customers prefer to pay in cash for products and services they buy. Paying through checks is also popular for large sums of money. The most commonly used cards in Germany are the Eurocard, MasterCard and Visa. However, American Express and Diners Club credit card consumers also exist, although they are few and far between.

The low usage of credit cards is attributable to the non-friendly environment prevailing in the German economy. All banks charge annual fees for holding a German credit card account. POS terminals for credit card transactions are also scarcely available, even in the larger cities. Limited shops displaying MasterCard or Visa symbols on their entry gate have processing systems installed. However, one can make ATM withdrawals through the German credit cards, using a four-digit personal identification number (PIN).

German banks adhere to strict procedures while issuing credit cards to customers. One should have a clear credit history to receive approval for a credit card. Also, one has to specifically mention the debit account in a German bank, which will be used to make payments for the credit card bills. The account will be linked under the standing order payment method, wherein the monthly bill amount of the credit card will be automatically deducted from the deposits.

Despite the low turnover, the Germany credit card industry is equally vulnerable to online frauds and phishing activities. In December 2008, the Germany credit card industry suffered a severe data security breach, when sensitive information of the credit card users was sent to a third-party. However, the scam hit the media headlines to expose security lapses at the banking institutions’ end.[br]

Germany Credit Card Service Providers

Major Germany credit card service providers are:

• Deutsche Bank AG
• Commerzbank AG
• Dresdner Bank AG
• DZ Bank AG
• Landesbank Baden-Wurttemberg
• KfW Bankengruppe
• HVB Group
• BayernLB
• WestLB AG
• Eurohypo AG
• Citibank
• Barclays
• Santander

Germany credit card issuers provide separate cards for personal use and for business purposes. Personal credit cards come with popular rewards, such as cash back, air miles, travel benefits and retail rewards.