Debit or credit card? Differences, providers & tips for consumers 2022

Debit or credit card? Differences, providers & tips for consumers 2022

According to a report from www.morgenpost.de,

The corona pandemic has caused contactless payment to become increasingly popular in Germany. In 2022, German citizens used a bank, credit card or smartphone for their purchases an average of 284 times. Compared to 2021, this is an increase of almost five percent. With a 41.9 percent share of sales, the debit card remains the most popular bank card in Germany, followed by the credit card with 8.2 percent.

In the financial industry there are different types of cards such as prepaid, charge, revolving, debit and special or bonus cards. A debit card is usually included free of charge in a checking account and now functions as the standard card in some accounts. However, problems can arise when using debit cards in retail as they are not always accepted. In addition, debit cards often have different general conditions than credit cards, especially in connection with foreign charges.

Given these developments, it is important to analyze the impact on the market. The increasing popularity of contactless payment methods could lead to financial institutions increasingly promoting alternative card types such as debit cards and prepaid cards. These cards offer consumers the opportunity to make cashless payments without having to open a separate bank account. However, when choosing a credit card, consumers should pay attention to the various services and possible restrictions in order to find the card that is best for them.