Some savings banks already exchange Girocards

This does not turn the Girocard into a credit card, it remains a debit card, so payments are debited directly from the account. But online shopping still works. The same applies in the event that financial institutions opt for Visa as a so-called co-badge.

This means that the Girocard should also be used more for payments on the Internet in the future – although probably not to a large extent. According to a Bundesbank survey from 2021, a good half of the people in Germany have one or more credit cards. In addition, when shopping online, purchase on account and the US payment service Paypal are by far the most used payment methods.

Top jobs of the day

Find the best jobs now and
be notified by email.

Mastercard had informed European credit institutions in autumn 2021 that new bank cards with the Maestro function could only be issued until summer 2023. The cards are usually valid for four years.

In the meantime, however, there are exceptions, so that Girocards with Maestro from some credit institutions will continue to work beyond the summer of 2027. The final Maestro end will be postponed somewhat as a result.

40 percent of savings banks opt for Visa

The savings banks, the market leaders in business with private customers, are the most advanced in this exchange. The first savings banks have already completely replaced the Girocard. At Sparkasse Siegen, for example, all 170,000 Girocards in circulation have a Mastercard function. It had already switched to the new Girocard type a good two years ago.

The Sparkasse Niederbayern-Mitte, on the other hand, relies on Visa. She started exchanging the 110,000 tickets in December. All customers will receive a new Girocard.

S-Payment, a payment service provider for the savings banks, is planning a “central conversion date” to Mastercard and Visa as a co-badge for new and replacement cards at the end of the first half of 2023. This is followed by existing customers. The Kreissparkasse Köln, for example, one of the largest German savings banks, will issue the new Girocard in new business from June next year. “The exchange of cards in existing business is planned from October 2023.”

>> Read more here: Federal Bank– Board of Management promotes the digital euro: “Stable solution” instead of “speculation objects”

According to S-Payment, around 60 percent of the savings banks have opted for a Girocard with Mastercard, the rest rely on Visa, which is a significant increase. So far, only a few savings banks have used V-Pay, the Visa counterpart to Maestro.

Keeping Girocards with V-Pay is also an option. Because Visa emphasizes to preserve V-Pay. Berliner Sparkasse, the second-largest savings bank in Germany, will remain with the co-badge V-Pay “until further notice”.

According to their lobby association BVR, the Volks- und Raiffeisenbanken will also usually issue Girocards without a Maestro function from July. However, Mastercard grants some credit institutions a respite: “In the event of technical challenges, we work with our partners to find migration plans that can also include transitional periods,” the company explains.

For example, there is a longer useful life for the Frankfurter Volksbank, the second largest German Volksbank. “Customers of Frankfurter Volksbank can still use the Girocard with Mastercard function until the end of 2027,” said the money house on request. The cooperative GLS Bank will also issue Maestro Girocards until October, as initially reported by “IT Finanzmagazin”.

Commerzbank also wants to stick to the Girocard

However, the pressure on the cooperative banks to change the co-badge is not as great as it is on the savings banks. Around 60 percent of the Girocards from Volks- und Raiffeisenbanken are currently equipped with V-Pay and 40 percent with Maestro.

Deutsche Bank and Commerzbank, both Mastercard partners today, are keeping a low profile with regard to the future foreign function of their Girocards, which also suggests a transitional period for both banks.

When asked, Commerzbank stated that it was basically sticking to the Girocard, but not which co-badge would ensure foreign payments from summer 2027. “In ongoing card exchanges, Girocards are again issued with the Maestro logo. This ensures a term until at least December 2026.”

Deutsche Bank is also committed to the Girocard. “In Germany, the Girocard is still a relevant means of payment,” Karl von Rohr, board member for private customers, told the Handelsblatt a few weeks ago. “We will continue to issue these to our customers.” In the future, they also want to offer card-based solutions for international payment transactions.

Several private banks, some of which are subsidiaries of major foreign banks, have recently stopped using the Girocard, or have not done so for a long time. Financial institutions switching to a Visa debit card include Targobank and Santander. The Hypo-Vereinsbank and the online banks DKB and Comdirect have also largely or partially switched to a Visa debit card.

An advantage: the virtual version of these cards can usually be used for payment apps such as Apple Pay. With the Girocard, this has so far only been possible for savings bank customers. One disadvantage: Mastercard and Visa debit cards are not accepted at some of the cash registers in Germany.

More: Savings banks expect ongoing weakness in mortgage lending

source site-11