What Credit Company Does American Express Use – Only until December 10, 2023: register for the Payback American Express card now to claim a welcome offer of 2,000 Payback points (value more than €20).
Until a few months ago, I never had a credit card. To someone coming from the United States, this might seem strange, but to everyone in Europe, it is not surprising. Instead of credit cards, we simply use debit cards linked directly to our bank accounts. Most European banks offer standard Mastercard or Visa cards that are accepted everywhere, offline or online. There are some exceptions such as Germany and the Netherlands, where banks issue Maestro or V Pay cards that cannot be used for online payments.
What Credit Company Does American Express Use
The important thing is that Europeans do not use and often do not trust credit cards, because they come with interest and can have a negative influence on spending habits. This is why I never got a credit card. I never felt comfortable spending money I didn’t have. What changed my mind? Charge cards.
A Person Holding American Express Credit Card For Payment Editorial Stock Photo
In Germany, most of the big banks like Sparkasse, Commerzbank, Deutsche Bank, ING, etc. they offer current accounts that can be equipped with a credit card as well. But the German definition of s
. This means that instead of buying something on a long-term loan and paying the interest over time, your bank account is debited monthly with the amount you spent in a previous month. Usually, this happens automatically by direct debit, so there’s no way to miss the due date. This also means that as long as you have enough money in your account, you will never pay anything other than the annual fee for getting the card. Of course, there is more to loading the card than this (as there is no set credit limit).
Unfortunately, standard credit cards from German banks don’t really offer any benefits beyond being able to rent a car, book a hotel or pay online (which can anyway be done with Mastercard or Visa debit cards). In addition to this, as I said, banks tend to charge annual fees for use, usually around €30. So, I never opened a traditional bank account in Germany and went with a more modern N26, where I pay nothing and get Maestro and Mastercard cards, for free.
But there are some credit cards on the German market that, firstly, do not cost you anything or offer great benefits for an annual fee, and secondly, allow you to collect points or even cash back. This long introduction brings me to the Payback American Express – a credit card you should have if you live in Germany.
American Express Platinum Charge Card Review (india)
Before talking about the card itself, it’s good to understand what Payback is and how it differs from other credit card points programs, such as American Express Membership Rewards.
Payback is the largest couponing platform in Germany. It allows you to collect points for shopping at partner stores, such as Rewe, Penny and dozens of others. Normally, 2 € spent is equal to 1 Payment Point, but with additional coupons and vouchers, you can multiply the amount of points you get by factors of 5, 10, and sometimes even 33. You can also collect points for online purchases in selected stores, including Lieferando (Takeaway.com), eBay, Disney +, Apple, and many, many more.
1 payment point is worth €0.01 on average, and you can spend it in a few ways. First, you can redeem for rewards in the Payback store, which can be an easy way to get gift cards to things like the App Store, Google Play, IKEA, etc. You can also exchange redemption points for miles in the Miles & More program. . By default, 1 point equals 1 mile, but I’ve seen offers for an extra 25% in value. Last but not least, there is a hidden option to simplify the points in a bank account. This effectively makes Payback a cashback program, where you can earn at least 0.5% on purchases from partners. I know you’re comparing it to credit card companies in the US where you can get 5% cash back on certain purchases, but it’s not too bad, considering merchant fees in the EU are capped at 0.2% for debit cards and 0.3% for credit cards.
American Express, in addition to having its own Membership Rewards program, happens to own Payback. As a result, in addition to their standard Platinum, Gold, Green and Blue cards, they also offer a Payback card in selected markets. The card has no annual fees and earns you 1 cashback point for every €3 spent. It not only doubles your Cashback points, but also allows you to collect them anywhere American Express cards are accepted. Ownership of the card also allows you to save points from expiring, as it works with programs such as Miles & More.
What Credit Score Do You Need For American Express?
Similar to other American Express cards available in Germany, the Payback card is a payment card. During the registration process, you will need to provide an IBAN number from your bank account which will be used for direct debits. This, along with no annual fees and extra Cashback points for every purchase, made me sign up for the card. I feel safe knowing that no interest will be charged to me.
It is important to note that the card does not have the typical limit that other credit cards usually have. Instead, American Express adjusts the limit based on your spending habits. If you’re making a larger purchase, you can check in the Amex app to see if the transaction will be approved. In case it wasn’t, you can always call, and most likely raise your limit. So far, I’ve only called it once, but it was possible to do it in English, at least after choosing the right topic with the dial pad.
While I like the Amex card, there are a few downsides. Most notable is the fact that it is an American Express card. In Berlin, there are also many places that either do not take cards or only accept debit cards such as Girocard, V Pay and Maestro, including post offices and other public authorities. It should come as no surprise that they don’t take Amex cards, as you also can’t pay with Mastercard or Visa. Some shops accept any card (including Diners Club, JCB and UnionPay) but American Express. It’s most likely due to the high merchant fees that Amex – unlike Visa and Mastercard – can still charge despite the cap put in place by the European Union in 2016. I can still pay by card in most of the places, and if I can ‘t. , I only use my Eurowings Premium Visa credit card.
Another downside to the Amex Payback card is high ATM fees, which are not that uncommon for credit cards. In the case of German Amex cards, the fee is 4% with a minimum of €5. There is also a 2% fee for payments in foreign currency, which means that the card is not the best option for traveling outside the Area the Euro. Repayment, in collaboration with BW Bank, offers another credit card that does not have these fees, but it is not possible to repay in full by direct debit (the bank only charges 10% deducted) and the card collects only 1 payment point for each. €5 spent. So for travel I have to keep a Eurowings Premium Visa or Revolut credit card.
The ‘queen Of The Skies’ Lives On — As A Credit Card
If you live in Germany and collect Redeem points – definitely. If you live in Germany and aren’t collecting points yet, you should really start. It allows you to save a decent amount of money on everyday purchases and even on things like fuel and electronics. Without paying too much attention to the points last year, I managed to collect almost 2,000 of them, which is €20. Now, when I started activating the coupons in the Payback app and using them for online purchases, I collected almost 9,000 points, just in two months.
The American Express Payback card lets you save even more with Payback and saves your points from expiring. In addition to this, it offers you some of the benefits of Amex premium cards, such as the 90-day return policy. I think it’s a great card for anyone considering getting their first credit card or looking to collect extra points or miles.
Looking for a more premium credit card? Read my review of the American Express Platinum card with benefits for over €760.
American Express Platinum in Germany – is it worth €720? 5 reasons that convinced me to sign up for the American Express Platinum card
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