EC card and credit card: that's the difference
There is more than one difference between an EC card and a credit card. Acceptance and payment options in particular differ between the card types. We have put together all the important information for you in this article.
This is the difference between an EC card and a credit card
- Settlement of sales: When paying with an EC card, the amounts are immediately debited from your account balance. When using a credit card, you can use an interest-free payment term of up to six weeks. In addition, there is usually the option of paying off the amount used in monthly installments. However, this entails high interest rates.
- Limits of liability for cardholders: If you lose your credit card or if it is stolen, you are liable for a maximum of 50 euros. In contrast, there is no uniform regulation for EC cards. The banks set their own limits here. In principle, you should always have lost cards blocked immediately.
- Limits of liability for merchants: Credit card companies guarantee merchants that they will also be credited with the amount. If the customer's account is not funded or the card has been misused, the credit card bank assumes the damage - not the merchant. This is exactly the opposite with EC cards.
- Payment: Retailers often only accept payments by EC card. This is mostly because the merchant has to pay a high commission to the bank when paying by credit card. The EC card is hardly used on the Internet. Here, the website operators process most payments by credit card. For foreign websites, this payment method is often the only option offered alongside PayPal. If you often travel abroad, a credit card is practically mandatory. A hotel reservation, flight booking or renting a vehicle is hardly possible without a credit card. Around 16 million credit card acceptance points are available outside of Germany worldwide. The EC card, on the other hand, is only accepted by 2.7 million places.
Cost of using the cards
An EC card is always part of your checking account and use is free of charge. Depending on the bank, there are annual and application fees for credit cards.
- Annual fee: The annual fee for a credit card is between 20 and 50 euros per year. Some credit cards are offered free of charge. But then often fall for other services, such as B. withdraw money, charges. Therefore, read the conditions of your bank carefully.
- Use of the EC card abroad: The fees differ depending on whether you use the card in or outside the Eurozone. In the euro zone, shopping with an EC card costs nothing. Abroad, 1 percent of sales is charged as a fee. You can get cash free of charge from the ATMs of your house bank. Some banks charge fees if you exceed a certain number of cash withdrawals per month. Abroad at least 3.50 euros - but up to 10 euros are not uncommon.
- Use of the credit card abroad: The use of the credit card is free of charge in the Eurozone. Outside this zone, a so-called international assignment fee of up to 2 percent of sales is charged. Some credit card providers offer free cash withdrawals worldwide. However, foreign service fees are often added. Inquire at your bank here in advance so that you do not experience a nasty surprise.
Find out how to find the best credit card in the next post