Can you live without credit cards
How can you use credit cards these days?
Nowadays it is very common to have a checking account with a bank. Payments are increasingly being made with the for daily shopping in the supermarket, when shopping or when refueling EC card settled. The fact is that the Card payment is becoming more and more popular due to digitization and is proving to be very practical. And also the number of owners of Credit cards has increased considerably in Germany in recent years. Although you can now even withdraw cash in many supermarkets such as Lidl or Rewe, it is assumed that cash will disappear completely from the scene in the future.
What are credit cards used for?
Credit cards set in a similar way to EC cards Means of payment and are usually connected to a reference account, a current account, from which the payments are debited. The difference is that payments with the EC card are debited from the current account immediately or within the following day. With credit cards, all payments are debited collectively, usually at the end of a calendar month. So you basically get one Short credit from your credit card provider. Therefore, the credit card is also well suited for larger purchases.
A credit card offers in comparison to the EC card in particular Trips abroad, especially outside the EU, further advantages. You can pay or withdraw cash with your credit card without high fees. In addition, you usually have to show a credit card when traveling for rental cars, hotels or travel bookings. This is how car rental companies, hotels or tour operators protect themselves against possible damage. For the period of use, a certain amount will be frozen in your account and will be released again when properly returned. Since this procedure cannot be carried out with EC cards, you cannot book a car or hotel room with it.
Different forms of credit card
We differentiate between different types of credit card. The most common form of credit card is that Charge card, with which you are granted a certain credit line. You can make payments within this framework. At the end of the month, the total amount of the transactions paid by credit card will be debited from your checking account.
The Prepaid credit card works without a credit line. This means that you can only use the amount that is currently in your account with it. The special feature of this credit card is that it cannot be linked to the current account. A separate credit card account is created to use a prepaid credit card.
Another type of credit card is that Revolving Card. She does not debit the entire amount at the end of the month, but only a certain percentage. This percentage is usually between 10 to 25 percent. Some banks also offer the option to set an individual percentage, while others have a fixed repayment rate.
What does a credit card cost?
The cost of a credit card varies depending on the provider. There may be a monthly fee of 5 to 10 euros. In addition, some providers also use one annual minimum amount which must be paid for by credit card. But there are also providers who offer credit cards free of charge. With the Revolving Card there are additional fees for interest.
Requirements for a credit card
To approve a credit card, you must have one Residence in Germany and be registered accordingly with your responsible residents' registration office. In addition, you have to at least 18 years be old. This requirement does not apply to prepaid credit cards that you can own from the age of 12. Furthermore, you must have a certain creditworthiness, i.e. the bank must be you as a creditworthy classify. Usually this is only the case if you have a steady income. If this is not the case yet, you can use the prepaid credit card.
Which providers are there and how high is their acceptance?
The most famous credit card providers are:
- Visa Card,
- Master Card,
- American Express,
- Commerzbank and
- the norisbank.
In Germany they are Visa and Master Card most common. This is partly due to the fact that these two cards are the most widely accepted means of payment in Germany. Although the number of American Express acceptance points in Germany is still limited, the American Express credit card is also widespread in Germany. Meanwhile, many chains like Lidl also accept it American Express. However, the discounters also offer their own credit cards with the Lidl credit card, Aldi credit card or Rewe credit card.
Which credit card you choose ultimately depends on various factors. One of those factors is that Type of use, for example whether you like them Private use or one Corporate credit card for your company.
How safe are credit cards?
Basically, your money is safe with the established credit card providers. Nonetheless, you have to use your credit card as well as your debit card with additional activities protect against abuse. This includes always entering your PIN secretly and not writing it down anywhere. It is best to have the four digits in your head only. Also pay attention to the expiry date of your card and check invoices carefullybefore you put your signature on it. Also, avoid buying products or services from unverified retailers. If a dubious provider gets your credit card details, they can misuse them.
Apply for a credit card
The Applying for a credit card can either on-line or in one Bank branch respectively. The Penta online business account offers the possibility of a digital business account and equip several team members with their own cards for your business account. In this way, all business transactions run through one and the same account. That makes it easier for you accounting, because you can view all income and expenses in the app and assign the processes to individual teams or customers using filter functions. In addition, you transfer with the Integration of accounting programs like debitoor and lexoffice your data directly and thus save a lot of time. The time aspect is particularly relevant for founders in the initial phase: You can use the time saved to concentrate on your core business. Penta also attaches great importance to the security of the online business account. Data theft is almost impossible. The Pricing is transparent and there are no hidden costs for you after registration.
At a glance: advantages of the credit card
- Many providers simply do not accept any other form of payment than a credit card. They protect themselves by freezing a certain amount in your account until the booking or claim is over. If no damage has occurred, the frozen amount is released again.
- Payments by credit card will only be debited from your checking account as a total amount at the end of the month. This "short loan" is therefore well suited for larger purchases.
- If a few security measures are observed, the credit card is considered a secure means of payment.
- Many credit cards include insurance that protects you against money theft and the consequences of losing your credit card.
- Some providers even offer travel insurance for their customers.
At a glance: Disadvantages of the credit card
- Watch out for hidden fees. Find out in advance about the exact conditions of the individual providers.
- With charge cards, the most common type of credit card, the entire amount is only debited at the end of the month. Make sure that your account then has the appropriate funds - With the many payments that are made nowadays with debit and credit cards, you can quickly lose track of things.
- Fraudsters can get your payment-related data through your credit card. Take the appropriate measures to protect yourself against possible data theft.
- When it comes to liability with your credit card for a rental car, for example, you have to expect high payments in the event of an accident or other damage. Therefore, it is all the more important to inform you in advance about the exact conditions and included insurance of your credit card.
The credit card: an indispensable part of travel and business life
A credit card is a means of payment that is mainly used for Business transactions abroad or travel and cash withdrawals abroad are perfect. In the meantime, some providers do not accept any other means of payment than a credit card, as they have the option of freezing a certain amount as security. This is particularly common with rental cars and accommodations.
You can also pay by credit card in most supermarkets and petrol stations as well as online.
There are different forms of credit cards. The most common is the charge card. The credit card is linked to the current account and the total amount of the credit card payments is debited at the end of the month. There are now countless providers, whereby Visa and Mastercard have the most acceptance points in Germany.
Credit cards are generally considered safe, but there are a few tips you should keep in mind to get ahead of yourself Data theft and loss of money to protect. So inform yourself in advance about the conditions of the provider. Owning a credit card has various advantages and disadvantages, whereby the advantages predominate and a credit card proves to be very practical or even necessary, especially for customers and payments abroad.
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