Using credit cards in Germany: A guide

Quick insights

• Credit cards are accepted by many businesses in major German cities, but cash and debit cards tend to be more popular payment methods.
• Some credit cards charge fees on international purchases, which are detailed in their terms.
• If you travel internationally often, you may want to consider applying for a credit card that doesn’t charge foreign transaction fees.

There are so many sights to see on a trip to Germany, from medieval castles to the Berlin Wall to the Bavarian Alps. To enjoy all the country has to offer, you’ll need an accepted payment method.

Credit card usage is generally lower among German residents, and among Europeans in general, as many prefer to use debit cards or cash. As a result, while large retailers and businesses in major cities often accept credit cards, merchants in smaller towns or rural areas may be less inclined to pay the processing fees associated with credit card transactions.

In the following guide, we’ll cover some things to know about using credit cards in Germany, including what fees may be charged and when cash might be necessary.

Using credit cards in Germany

In Germany, credit cards—primarily Visa and Mastercard—are often accepted in urban and tourist areas, as well as at major retailers. Many businesses also accept contactless payments via digital wallets, though some may only accept linked debit cards rather than credit cards.  

Bringing multiple payment options—and understanding the terms associated with each one—may facilitate smooth transactions during your trip. To use a credit card abroad, keep in mind that many U.S. banks, including Chase, don’t require you to alert them before an international trip. Travel notices have become largely outdated thanks to innovations in fraud detection technology.

Euros are typically widely accepted and may be necessary for certain purchases, including small transactions or in small businesses like bars, cafes and local markets. For example, if you’re headed to Munich for Oktoberfest, be aware that some vendors—particularly food stalls and beer tents—may only accept cash.

Potential credit card fees while traveling in Germany

There may be fees associated with international purchases when you travel outside the U.S. You can find out of if some of these fees apply to your credit card by checking your credit card’s terms. Other fees may be assessed by merchants in Germany.

Here are some things to know about potential credit card fees while traveling in Germany and a few ways you may be able to minimize them.

Foreign transaction fees

You could be charged foreign transaction fees when using a U.S. credit card in Germany. These fees—typically ranging from 1% to 3% of the transaction amount—help card issuers cover the cost of processing international transactions and manage risks associated with fluctuating exchange rates.

Certain credit cards do not charge foreign transaction fees. For instance, some travel rewards credit cards don’t charge these fees and typically come with travel-friendly rewards and benefits. Note that travel credit cards often have an annual fee.

Currency conversion fees

When using a debit or credit card or withdrawing euros from an ATM in Germany, you might encounter a currency conversion fee—usually around 1%. The fee is sometimes included as part of the foreign transaction fee.

Dynamic Currency Conversion (DCC) fees

A vendor may use a DCC service, which allows a cardmember to pay in their home currency. While it can be convenient to see the transaction cost displayed in U.S. dollars, this service typically charges a fee and provides an unfavorable exchange rate.

To avoid these fees, decline the option to pay in U.S. dollars at the payment terminal or inform the merchant that you’d prefer to pay in euros.

Paying in euros helps you avoid DCC fees, but you’ll still be subject to any fees and exchange rates associated with your credit card. However, your credit card’s terms may be more competitive than those offered by DCC services.

Pros and cons of using U.S. credit cards in Germany

Whether you’re planning to explore Germany’s Christmas markets or indulge in a shopping spree along Ku’damm in Berlin, a credit card can be a convenient payment option. However, it also has potential drawbacks. Below, we’ve outlined the pros and cons of using credit cards in Germany:

Pros

• Credit cards are accepted by many businesses in urban and tourist areas.
• You can make large purchases with a credit card without the need to carry a large amount of cash.
• Credit cards may offer you tools you can use for fraud protection.
• Credit card statements and digital banking tools can help you track your spending.
• Some credit cards provide travel protection benefits, such as coverage for lost luggage and trip cancellations.
• Travel rewards credit cards usually allow you to earn points on trip expenses, including flights, hotels and dining out.

Cons

• Some credit cards charge foreign transaction fees, which typically apply to any purchases outside the U.S., such as in Germany.
• You may need euros for certain purchases, like buying currywurst from a food stand or tipping hotel staff.
• Without careful budgeting and tracking, there’s a risk of overspending.
• Daily fluctuations in the exchange rates associated with your credit card can complicate budgeting.
• Opting to pay in U.S. dollars may result in DCC fees charged by the merchant.
• Monitoring your credit card account for unauthorized charges during your trip can be burdensome.

In summary

Cash and debit cards are generally more popular in Germany (and in Europe in general). However, many businesses in major cities and tourist areas do accept credit cards. Some businesses may have minimum purchase requirements for credit cards, and certain small businesses only accept euros. 

Using a credit card in Germany could result in foreign transaction (refer to your card’s terms), currency conversion and DCC fees. To minimize these fees, you may want to consider applying for a credit card with no foreign transaction fees or choosing to pay in euros.