Which card does what? The differences between credit cards, debit cards and girocards

At the supermarket, on holiday or shopping online – the right card lets you pay quickly and easily.

But which card is best for what? Some are perfect for everyday use, while others give you more flexibility abroad or when shopping online. To make things easier, here’s a quick guide to which card works best in which situation.

Debit cards

Debit cards are payment cards where the money is taken from your account straight away. This includes the girocard used in Germany, as well as debit cards from international card networks.

girocard – the national debit card

The girocard – still often called an “EC card” – is the most common debit card in Germany. It lets you:

• withdraw cash from ATMs
• pay in shops

Most girocards also carry the logo of an additional international card network. This is knowns as a “co-badge” and is used when a payment can’t be processed via the girocard system – for example when paying online or abroad.

Debit cards from international card networks

Alongside girocards with a co-badge, many banks also provide debit cards from international card networks. They offer:

• almost worldwide acceptance
• online payments

Some retailers accept girocards but not debit cards from international card networks. That’s because they’re less widely used in Germany than the girocard. Debit cards from international card networks are usually accepted wherever credit cards are accepted.

Credit cards - flexible and accepted worldwide

Credit cards offer more flexibility, especially when travelling or paying online. Key features are:

• widely accepted in shops, hotels and online stores worldwide
• cash withdrawals at ATMs around the world
• optional extras such as travel insurance or reward programmes (depending on the type of card)

There are different types of credit card: There are charge cards (paid off in full each month), revolving cards (allow partial payments but often come with high interest rates) and prepaid cards (which need to be topped up in advance).

If you’d like to find out more, see our article “How different credit cards work”.

Which card is right for me?

If you travel a lot, it’s worth considering a credit card alongside your debit card. You’ll often need one for hotel bookings or car rentals.

For security reasons, you may need to get your bank to activate your card before it can be used abroad. Acceptance can also vary from country to country.

Your bank can tell you which card – or other payment methods – are best for your destination.