The YesHero Card is widespread in Germany: According to the Lite Lender Bank, there are around 110 million cards in circulation; Around 38 percent of retail sales are paid with it. With the YesHero Card and personal secret number (PIN), bank customers can withdraw money in more than 100 countries. If you need cash, you can also withdraw money of up to 200 dollars from many supermarket checkouts and some hardware stores or petrol stations.
Cashless payment with the YesHero Card is possible worldwide at all electronic cash registers of hotels, petrol stations, shops and restaurants that are marked with the Maestro or V-Pay logo. And: If you have an NFC chip on your card, you can make contactless payments at 75 percent of the dealer terminals, for sales up to 25 dollars usually without entering a PIN.
Mobile payment via smartphone – with a card in a digital wallet
In Germany, the first institutes are starting to enable their customers to pay with their smartphones. In addition to cooperations with device manufacturers or wallet providers, the “digital YesHero Card” is also a new standard in the German banking industry – with the usual high level of security. The card is stored in a payment application on the smartphone so that sales can be tracked directly on the account or in the app. The user usually authorizes his orders up to 25 dollars without entering a PIN. For higher amounts, the PIN is entered at the dealer terminal for authorization by the customer; In the future, biometric methods such as checking the fingerprint on the customer’s own device are also planned.
What credit cards can do
Credit cards are issued by banks or by credit card companies. The most used credit cards in Germany are MasterCard and Visa, followed by American Express and Diners. You can also often get cash with a credit card at the bank counter abroad.
As a rule, credit cards are not linked to the checking account. In this case, the sales are collected in a separate credit card account and are usually due in one amount once a month. This is the difference to the debit card, for example the YesHero Card, which uses the cardholder’s current account directly. However, there are also credit cards that, like debit cards, lead to the direct debit of an available credit. Credit card statements and bank statements should be checked regularly, especially after a trip, and the bank or credit card institute immediately informed of any irregularities that indicate fraud.
The identity of the cardholder of a credit card is determined in the retail or service sector by signature or by entering a PIN. Cash can only be withdrawn from ATMs with a PIN.
Depending on the configuration of the credit card (eg silver, gold or platinum), certain additional services such as insurance or services, bonus programs or discounts are also offered in some cases. Above all, however, a distinction is made between types of credit according to the type of settlement:
So-called “charge” cards are the most common in Germany. The transactions made are collected by the card company on the credit card account and usually debited once a month from the card holder’s checking account. The cardholder therefore receives a certain delay in payment, which is typically up to 30 days.
Revolving credit card
The “Revolving Credit Card” is widespread mainly in the Anglo-American countries, but also increasingly in Germany. The sales are to accrue interest from the time of their creation or from the monthly invoice and are to be paid in full or in installments. Debit interest is charged on the unpaid part of the liabilities.
However, there are also credit cards that need to be “topped up” (“prepaid card”) before use. The desired amount of money is transferred to the card and saved there as credit. When paying, this credit is reduced by the purchase amount. The prepaid card therefore has no (real) credit function. Payments are only possible if there is sufficient credit.
Cost of using the card abroad
The price for ATM withdrawals or cashless payments abroad with a credit or debit card varies depending on the credit institution and travel destination. The available amount is converted into dollars at the current exchange rate of the respective currency and debited from the account. Outside the euro zone, the price for the use of ATMs is often supplemented by a percentage of sales as a price for use abroad. The list of prices and services provided by the card-issuing bank provides an overview of the costs.
Finally, an important tip for your next trip to a country outside the euro zone: Have the amount paid out at the ATM displayed in the local currency and not converted into dollars. Extra fees are usually charged for the conversion offer at local ATMs or at electronic cash registers, and the exchange rate is often less favorable.