AmEx Payback Credit Card: The Best Free Credit Card in Germany (2025)

You might be thinking, "I already have my EC and a Visa/Mastercard debit card. Why do I even need a credit card in Germany?" Here's why a credit card might be useful:

1. Payment Flexibility: With a credit card, you have the flexibility to spend throughout the month and pay at the end of the month, when your balance is automatically debited from your account. Pro tip: you can change the billing date to come right after your payday for easier budget management. I did it for both of my credit cards, and I find it way more convenient than paying the bill in the middle of the month.
   

2. Online Shopping: If you shop online and like to try before you buy, a credit card will make the process smoother. When you return items, refunds go back to your credit card balance before you even paid for your order, instead of you paying in advance and then having to wait for a refund.
   

3. Car Rentals Abroad: Many international car rental companies only accept credit cards for deposits. Having a free credit card as a backup for these situations can save you from headaches at rental counters in foreign countries.
   

4. Perks: Whether it's travel insurance, Payback points, or air miles you're after, you can find a credit card that aligns with your lifestyle and spending habits. The AmEx Payback credit card offers the best perks among free credit cards in Germany, but if you’re willing to consider a paid credit card, check out AmEx Gold that costs €12/month and helps you collect air miles as you spend; plus, it comes with a generous welcome bonus (currently 40.000 Membership Reward Points — much higher than their usual one!).

Why Credit Cards in Germany Are Not That Scary

So why do I consider American Express Payback the best free credit card in Germany? Let’s talk perks and benefits:

1. Payback Points: This is the main perk of the AmEx Payback credit card. You earn 1 Payback point for every €3 spent – not just at Payback partner stores, but anywhere you use the card (except gas stations). Plus, you'll keep earning your regular Payback points when shopping at partner locations. New to Payback? Check out our comprehensive guide to Payback points in Germany to understand how the program works and how to maximize your rewards.
   

2. No Fees: While many credit cards in Germany come with a cost, American Express Payback credit card is completely free with no annual fees, and you can get an additional card at no extra cost to give to your family member.
   

3. Easy Application: Unlike some other credit cards in Germany, the AmEx Payback credit card doesn't require proof of income or permanent residence. The application process is straightforward, making this card accessible for many people who are new to Germany or don't have a traditional full-time job.
   

4. Extended Returns: You get a 90-day return period for purchases up to €300 (with a total limit of €1200 per year). It’s not a major perk, but it can help you one day if you accidentally miss the standard return window.

Once you get your card, you can either carry it in your wallet or add it to Apple Pay or Google Pay. While American Express isn't accepted everywhere in Germany, there's a simple workaround, at least for online shopping: add your AmEx Payback credit card to your PayPal. This lets you use it at most online shops and some physical stores too.

It's entirely possible to use AmEx Payback credit card without paying any fees – I've been doing it for over two years. Here are fees you should be aware of so that you can avoid them:

• 2% foreign currency fee: This fee means it's not ideal for spending outside the Eurozone or online shopping in other currencies. For frequent travelers to non-Euro countries, you might want a different card for those trips (I use Trade Republic when I travel).

• 4% ATM fee (minimum €5): Using this card (or credit cards in general) for cash withdrawals isn't recommended – it's quite expensive. Best to stick to your regular debit card like N26 or Commerzbank for ATMs.

• Late payment fees: These include default interest of 5 percentage points above the base interest rate, plus reminder fees of €8 for each reminder. However, thanks to the automatic debit system, these are easy to avoid — just make sure your linked bank account isn’t empty.

The key to fee-free usage is simple: pay in euros, avoid ATM withdrawals, and make sure your linked bank account has enough money for the monthly debit. Do this, and you'll enjoy all the benefits of the American Express Payback credit card without any extra costs! For 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 want to earn rewards on your everyday spending or looking for an easy-to-get free credit card in Germany, the AmEx Payback credit card can be a useful addition to your wallet. It's a practical way to earn a little extra cashback on your regular expenses without any effort, and it definitely saved me some money during the two years that I’ve had it. They also offer a nice sign-up bonus: right now, you get a welcome gift of 4,000 Payback points (worth €40) when you sign up. For a free credit card in Germany, it’s a really good deal!