AmEx Payback: The Best Free Credit Card in Germany in 2024

Why Get a Credit Card in Germany?

You might be thinking, "I've already got my EC and a Visa/Mastercard debit card. Why complicate things?" Here's why a credit card in Germany can be useful:

1. Flexibility: A credit card allows you to pay your bill at the end of the month. Pro tip: if you get paid monthly, set your billing date right after your payday to make managing your finances even easier.

2. Online Shopping: If you're an avid online shopper who loves to try before you buy, a credit card is your best friend. When you return items, the money goes back to your credit card balance instead of waiting for a refund to hit your bank account. Plus, the AmEx Payback card offers an extended return period, giving you more time to decide if you want to keep your purchases.

3. Perks: This is often the main draw for credit cards. Whether it's travel insurance, miles, or cashback you’re after, you can choose a card with benefits that align with your lifestyle and spending habits. These benefits make credit cards in Germany increasingly popular.

Why German Credit Cards Are Not as Scary as You Might Think

Credit cards in Germany are a different beast compared to their American cousins. In the US, credit cards can be a slippery slope to debt. They often have high limits and encourage carrying balances. Interest rates can be steep, leading to potential debt accumulation. Rewards and cashback on American credit cards are often generous, but they certainly come with a price, especially if you lack financial discipline to pay off your balance in full each month.

Here in Germany, things are more... shall we say, orderly? Here, your balance automatically gets debited from your linked bank account at the end of the month – this means no missed payments unless your bank account is empty. This system makes it harder to accumulate debt. Because of this, rewards are generally more modest, but it makes credit cards in Germany a safer option for most users.

The AmEx Payback Card: What's the Deal?

Now, let's talk about what makes this card special:

1. Payback Points: This is the main draw of this credit card. You earn 1 Payback point for every €3 spent – not just at Payback partner stores, but anywhere you spend money (except gas stations). Plus, you'll keep earning your regular Payback points when shopping at partner locations.

2. No Fees: The card is completely free with no annual fees, and so is an additional card. Why get an extra one? It's great for family members to use, and it helps you collect points even faster. Two cards, twice the points, zero extra cost. Free credit cards in Germany are not very common, so this definitely makes AmEx Payback card stand out in the market.

3. Easy Application: No income proof required for this card. The application process is straightforward and hassle-free, making it accessible for many people who are new in Germany, don’t have a stable full-time job or might struggle with stricter requirements from other card issuers for other reasons.

4. Point Preservation: This card keeps your Payback points from expiring. Normally, Payback points have a three-year expiration date. But with AmEx Payback card, your points stay valid as long as your account is active.

5. Extended Returns: You get a 90-day return period for purchases up to €300 (up to total €1200/year). This could be particularly helpful if you accidentally missed the standard return deadline (happens to the best of us!).

Once you have your card, you can carry a physical card with you or just add it to Apple Pay or Google Pay for easy use. Keep in mind that some places in Germany might not accept American Express directly, but here's how to get around that: add your AmEx card to your PayPal account. This way, you can use it at most online shops and some physical stores too.

What's This Payback Thing Anyway?

New to Payback? It's Germany's largest loyalty program, and it's everywhere. Partners include Rewe, dm, Amazon, Aral, and hundreds more. You collect points on purchases, which you can later redeem for cash, vouchers, or products. Want to dive deeper into the world of Payback? Check out our comprehensive guide to Payback below to get tips on maximizing your points and getting the most value from the program.

Credit Card Fees and How to Avoid Them

We've read the fine print so you don't have to! While American Express needs to make money somehow, it's entirely possible to use this card without paying a cent in fees. In fact, I've been using mine for two years now without incurring any charges. Here are the fees you need to know about:

• 2% foreign currency fee: This means it's not the best card to use outside the Eurozone, or for online shopping in currencies other than euro. If you travel frequently to non-Euro countries, consider a different card for those trips.

• 4% ATM fee (minimum €5): I personally never use credit cards for ATM withdrawals and wouldn’t recommend doing that. If you must, be aware it's quite expensive.

• Late payment fees: These include default interest of 5 percentage points above the base interest rate, plus flat-rate reminder fees of €8 for each subsequent reminder. However, these are easily avoidable thanks to the automatic debit system.

The key is to use the card wisely: pay in euros, avoid ATM withdrawals, and ensure your linked bank account has sufficient funds for the monthly debit. Do this, and you'll enjoy all the benefits without any extra costs.

For the full details about fees and conditions, check out the official AmEx document here (in German).

Is the AmEx Payback Card Right for You?

If you're already collecting Payback points, do a lot of online shopping, or looking for a rewarding free credit card in Germany, the AmEx Payback card is a no-brainer. It's an easy way to boost your points earnings without changing your spending habits. And if you're not using Payback yet, you definitely should start! Remember, the key to smart credit card use is financial discipline. Use it for your regular spending, pay it off each month, and watch those points add up.

Ready to elevate your spending game? Usually, you get 1000 points (€10 value) when you sign up for the AmEx Payback Card, but right now American Express is sweetening the deal with an increased welcome bonus:

• If you spend €500 in two months: Get 3000 Payback points (€30 value) + €20 Payback store reward voucher

• If you spend less: Still get 1000 points (€10 value) + €20 Payback store reward voucher

This offer is valid until October 21st, so don't wait too long to decide!