How to use a DKB-Visa-Card

14 posts in this topic

Hello

 

I was quite anxious to get myself a US- or Canada-style credit card, so I did some quick research and now got myself a DKB-Visa-Card. They sent me 4 different letters in a span of a week, each with a different piece of the puzzle, so to speak. But I still havent received the card, so I am thinking I still have atleast one more mail to get :lol:

 

The real question I have is this: what exactly is this card? Is it a US-style credit card, a bank account with overdraft limit, or both? I am confused since it says VISA-Card, but then one of the letter says "Kartenart: Girokarte" and lists IBAN number etc, much like my Deutsche Bank account.

 

The reasons I wanted this card were:

 

1. Hoping to get some cashback like some credit cards in US/Canada have, they pay you 1 or 2% of your total spending. One of the letters does talk something about various cashbacks it offers...

2. Use it on websites for travel, some of which need a credit card for payment, and dont accept Deutsch Bank-style EC card

3. Build "credit history" as they say in North America...dont even know if such a thing is even needed in Germany, for example when buying an expensive car or house etc

 

I havent tried yet to call them, I dnt know if they have an english agent.

 

Your comments would be appreciated.

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Cards and PIN numbers go with separate letters. You should have received:

1 letter with Visa card. Technically it works like credit card but is a prepaid card in fact.

1 letter with V-Pay card (Girocard), this is your bank accound card.

1 letter with PIN for V-Pay card

1 letter with PIN for Visa card

1 letter with access code to your online banking. There you can set up automatic top-ups of your Visa card from your bank account.

1 letter with TAN list for online banking.

 

Probably you haven't received all the letters yet.

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You'll get two cards: a Visa card which is accepted wherever credit cards are accepted (in Germany, online, and abroad) and an EC card. These, and the PINs for these, are sent separately in the mail.

 

Yes, you do get perks when you pay with the Visa card.

 

The credit card is a credit card in the sense that you have a credit limit (usually low, especially if you just arrived in Germany). There are a couple of differences to other credit cards, though:

 

  • it also functions as a savings account: you can park money in the credit card account, where it will earn respectable interest compared to regular savings accounts.
  • if you have a positive balance (see above), this will in effect increase your card's credit limit. I.e., if you have €500 credit limit and you've parked €1,000 in the CC account, you can charge up to €1,500.
  • You should use the Visa card (not the EC card) to make cash withdrawals at ATMs, both in Germany and world-wide. Cash withdrawals at any ATM are free as far a DKB is concerned, but the other bank may charge for the service (unusual in Germany, common in North America). No worries, you don't have to pay interest on cash advances from day 1 (as would be common with North American cards).
  • The card is paid off in full at the due date from the associated DKB checking account (only. You can't use another checkiing account). If you maintain a positive balance, it gets paid off from there first.

 

 

Another thing: the DKB card is great for traveling since you can withdraw cash for free world-wide, and since DKB gives you an excellent exchange rate. Warning: If you use it outside of the Eurozone, the local ATM may sometimes give you the option of charging you in Euros. You should always refuse, and ask to be charged in the local currency, since DKB will give you a much better exchange rate. In other words, if you withdraw £100 in the UK, ask to be charged £100, and not whatever Euro equivalent the ATM may offer as an option.

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Basically you haven't just applied for a credit card...you've opened a new current account with DKB and the CC comes with that. Great product though so don't be surprised if you end up switching everything over to DKB and ditching Deutsche Bank.

 

Just to note...cash withdrawals do cost DKB money. They pay the ATM operator a fee when you withdraw cash. They can't directly pay the fees which are "tacked on" to withdrawals as happens frequently in the US. However, DKB will actually refund these fees also if you ask for them (keep the ATM slip just in case).

 

DKB hopes that you will use them for other products like loans, share dealing etc. They don't make any profit (neither do the other banks actually) from current accounts. The other banks have to charge though because they have much higher fixed costs like a branch network to maintain.

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The post above sums it all. I would add their call centre (when you are able to reach them) don't speak in English, I think it's a policy in DKB. But they were helpful and tolerated my japanese-like German.

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Basically you haven't just applied for a credit card...you've opened a new current account with DKB and the CC comes with that.

 

 

And that means that the thread opener has to deposit some money at the DKB account. Otherwise he can not use the DKB VISA Card.

DKB VISA card will not work with any other bank account than the DKB account.

 

 

Just to note...cash withdrawals do cost DKB money. They pay the ATM operator a fee when you withdraw cash.

 

The issuer of a VISA card pays worldwide around 1,7€ for an ATM withdrawal to the ATM owner.

 

 

DKB... don't make any profit (neither do the other banks actually) from current accounts.

 

I'm not so shure in this position <_< : There are 1 or 2 percent commision from every usage (not ATM) of the VISA card. And DKB collects money from the account owners for 0 or 0,5% or whatever interest, and gives the money away (credit) for 5% or whatever...

 

To compare free credit cards you may use my free German credit card comparision table. You may select for example credit cards which comes with their own bank account, and credit cards which work with any German bank account.

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if you are looking at a cash-back card, I find the Amazon (.de) Visa card useful - for every Euro spent on Amazon you earn a 2 points, everywhere else 0,5 point ( 1 point per 2 euro).

 

Once you get to 1000 points you get a €10 Amazon gift voucher - or can set off the annual charge (otherwise €20). They also offer a €30 Amazon voucher when you open the account.

 

So, if you use Amazon.de regularly like I do, the 2% cashback really mounts up - the 0.5% everywhere else cashback isn't too bad either if you put large purchases on it.

 

More details here.

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This DKB Visa is a strange concept then? I have to deposit money first to be able to use it later? Well then why do I need a credit card at all, and how can you even call it a credit card? Why wouldnt I just use my EC card? I guess the only need to use VISA would be at places that dont accept EC?

 

This is so unlike in NA...a credit card is exactly what it says - CREDIT.

 

Am I mising something?

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This DKB Visa is a strange concept then? I have to deposit money first to be able to use it later? Well then why do I need a credit card at all, and how can you even call it a credit card? Why wouldnt I just use my EC card? I guess the only need to use VISA would be at places that dont accept EC?

 

This is so unlike in NA...a credit card is exactly what it says - CREDIT.

 

Am I mising something?

 

 

Well DKB Visa card trumph other "credit card" in the sense that when you take money out of any cash machine, you donot pay any charges for cash-withdrawl (cash machine fee, + currency conversion charges for non euro currency.)

 

In Germany, you will hardly find any 'physical' shop that accept credit card and not the EC card. But you will find plenty of shop that don't accept credit card. So for shopping with card, use EC card. For cash withdrawl, use dkb visa.

 

If you need American style credit card then you can get one from Barclaycard (free) Or Mastercard gold (free too). Please do read the term and condition and understand their clause.

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Am I mising something?

 

 

 

credit cards are not really seen as "credit" cards in Germany but more as payment cards which are accepted online and in non euro countries.

That's just the way it is here and you have to get used to it. If you want to get a credit, go and apply for one at your bank ;)

 

Btw you do get a credit line of about 100-1000 euro.

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This DKB Visa is a strange concept then? I have to deposit money first to be able to use it later? Well then why do I need a credit card at all, and how can you even call it a credit card? Why wouldnt I just use my EC card? I guess the only need to use VISA would be at places that dont accept EC?

 

This is so unlike in NA...a credit card is exactly what it says - CREDIT.

 

Am I mising something?

 

In Europe it's a common concept, nothing strange. It's called "credit card" because it's not linked to any bank account and it technically works as a credit card. In reality it's not a credit card, but only you and your bank know this, for the seller there is no way to figure it out. That's why you can use this card to rent a car in Germany or secure your hotel booking. These are the only two situations where EC card doesn't work.

 

Actually, the major advantage of this card is free ATM withdrawals worldwide. If you don't need this feature, you can look for normal credit card from your bank.

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It is more like a Diners or Amex card I suppose. The credit limit depends on whether or not a salary is paid into the account. If so, the limit may be 3 times the salary, so several thousand €, but yes, it must be cleared on the 22nd of the month. The thing is...DKB are actually doing you a a favour because the current account will also have an overdraft facility which should be close enough to the card limit actually (in my case it's identical anyway) and this overdraft has a much cheaper interest rate than "proper" credit cards like the Barclaycard (about half the rate!) so what you can do if you want real credit is to use the card and let your current account go into authorised overdraft when the credit card balance is settled on the 22nd of the month. Then your card will have a zero balance but your current account will have a negative balance but you'll only be paying (currently) 7.9% interest.

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So are there any German credit cards that offer cash back?  I already have the Amazon one offered by Landesbank Berlin, but want CASH baby!! Not more Amazon credits!

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A good place to compare credit cards is https://www.check24.de/kreditkarte/

 

They used to have a filter which allowed to to search for cards with "bonus" points or similar, but this seems to have disappeared.

 

These days any cards that offer any such benefits as cashback or bonus points to the customer are becoming rare.  Since the EU started restricting the fees the cards could charge to retailers, then the profits of the companies making the credit cards has taken a big hit, so they can't afford to offer so much any more.  

 

I did find this, but I'm not sure how up to date it is;

https://www.udongo.de/kreditkarte/39-kreditkarte-ratgeber/255-cashback-kreditkarten-geld-zurueck-bei-kartenzahlung.html

 

And this;

https://www.cardscout.de/cashback-kreditkarte

 

but you need to check the conditions of each card.

 

 

I personally use Amazon, as I anyway do a lot of shopping on their site then it make sense for me.

 

 

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