Changes are pending at Sparkasse. The bank is parting with the GeldKarte and canceling the Girogo prepaid payment function. TECHBOOK reveals what this means for users.
In many wallets there are a lot of payment cards. Mastercard, Visa, American Express and Girocard. As if this confusion wasn’t enough, the giro card, which is very popular in Germany, also has a whole range of different payment functions: Maestro, Geldkarte, Girogo, V-Pay. Understandably, you quickly lose track of things. Especially since not all of these card functions are actually used in everyday life. Sparkasse customers now have to say goodbye to Girogo and the Geldkarte.
Savings bank deletes money card
The prepaid payment function is integrated in the chip on the giro card. This can be used to pay small amounts at parking or cigarette machines. The chip is also used there for age verification, among other things. However, there are two main reasons for the end of the cash card function and the fact that it is only used by a few bank and savings bank customers. On the one hand, you have to load the chip using the prepaid method, while other payment methods use the account balance or overdraft facility directly. This is simply too inconvenient for many bank customers, and the chip ends with a credit balance of 200 euros. It is therefore not suitable for payments of larger amounts. However, the issue of security is likely to be much more problematic. If the bank card is lost or stolen, the balance on the money card is ultimately gone. It is therefore de facto cash.
Also read: Big change at savings banks and Volksbanks! Customers have to change
Google Pay makes Girogo superfluous
Girogo was introduced in 2012 by the German banking industry. For the first time, it was possible to make contactless payments via NFC at retail terminals or vending machines. However, this procedure has also never really caught on with bank customers. The reason: Girogo is also a prepaid method, whereby the maximum top-up amount is 200 euros. However, with Google Pay and Apple Pay, there are now much more convenient contactless payment methods that are accepted worldwide. Here, the purchase amount is debited directly from a Visa or Mastercard, so a separate top-up is not necessary. Most banks in Germany have already integrated the payment processes of the US groups into their systems, which is why additional national solutions are superfluous.
What does the abolition of Girogo and cash cards mean for Sparkasse customers?
Although millions of savings bank customers in Germany are directly affected by the changeover, for most users little will change with the abolition of the debit card and Girogo. In the meantime, the Sparkasse cards have an alternative NFC function anyway, with which payments are collected directly from the deposited current account. This has become established and is already being used by many Sparkasse customers. If you still use Girogo or debit card, you still have more than enough time to change: The cards remain valid up to and including December 31, 2024, but they must be finally unloaded by March 31, 2025 at the latest if you do not want to spend the credit .
Also read: All TAN procedures at a glance and how they work
Exchange not necessary in advance
Despite the lack of functions, you don’t have to rush to the Sparkasse to exchange your card. This can continue to be used normally for the time being. After expiration, savings bank customers will then, as usual, be sent a new card and PIN by post. Since the summer of 2020, the savings banks have stopped issuing cards with the Geldkarte or Girogo function.
However, if a card is to be exchanged, customers should clarify in advance whether the address data stored with the bank is still up-to-date or correct. Incidentally, with the next card update, savings bank customers are expected to lose a much more important function: Mastercard is discontinuing Maestro in Germany. This function made the giro card “internationally compatible”. Whether and how they replace the Maestro card is ultimately decided individually by each Sparkasse. For example, some rely on a merger of Girocard and Mastercard Debit (Co-Badge). Others may omit this function entirely, so that the giro card can only be used domestically and an additional Visa or Mastercard is required when traveling abroad. The exact modalities will be finally clarified at most institutes from 2023.
Our tip: PayPal with Google Pay
Regardless of what your Sparkasse offers, you can already use Google Pay, for example, in connection with any bank account in Germany. All you need is a PayPal account. This is finally linked to the checking account and a virtual Mastercard is generated in Google Pay. Google Pay then accesses the NFC chip in the smartphone. In the end, you pay contactless as usual, but you no longer have to top up your credit. Incidentally, NFC wearables such as smartwatches are even more convenient than making contactless payments with cards. The advantage: You always wear them on your body, so you can’t lose them and you don’t have to carry a wallet with you anymore.