Expatica's resident German teacher Renate Grasstat helps foreigners navigate the banking world in German.

The first thing to consider in regards to banking in Germany is that you will not be able to use your credit card wherever you like. For some newcomers to Germany, this is often the first "culture shock" they experience.

For example, it can be traumatic standing in line at the supermarket and not being able to pay because the cashier says loudly: "Tut mir Leid, die nehmen wir nicht! (Sorry but we don't accept that)" – with twenty people looking on.

The reason for this is rather simple: In Germany, the "usual" card people use is the EC card which is not well known in other countries, not even some European Union members. Almost everyone in Germany receives this card from their bank automatically, when opening an account. It is almost universally accepted, except from very small stores just as corner markets. Visa and Mastercards or Maestro cards etc. are essentially "extra"; they have to be paid for and not everybody receives one.

So there are two systems in Germany: the EC system and the credit card system. They work in different ways, too, as far as payments and refunds are concerned; only big companies, expensive restaurants and hotels can afford to accept credit cards. (If you want to ask if a merchant accepts credit cards, just ask: "Nehmen Sie Kreditkarten?")

So, what is the most simple is cash, and it is here that you might need to go to the bank. You will most likely draw money from the cash machine, quite often possible in English as well as in German.

If not, the procedure is this, as in most other lands:

"Bitte geben Sie Ihren PIN-Code / Ihre Geheimzahl ein" means: Please enter your code.

Some different sums as suggestions appear usually on the monitor, just to be clicked. Another option is: "Anderer Betrag". - "Betrag" is a word for a certain amount of money, similar to "Summe / sum".

After this, press "Korrektur (correct)", "Abbruch" (cancel) or "Bestätigung" (confirm). By the way, the "B" for "Bestätigen / Bestätigung" is also the letter on the button to be pressed when paying with your card in shops or restaurants when possible. You will be asked either to enter your pin code or to sign the receipt.

Checks are not very common in Germany. People pay by transferring ("überweisen") money from their bank account. This can be done either by Internet banking or by using an "Überweisungsformular" (very formal banking German: "Überweisungsträger"), a form at the bank branch.

This is how to fill in such a form:

- "Empfänger" or "Begünstigter": the name of the person who is to receive the money; start with the second name, then first name, then "Fa" for "company" or titles like "Dr".

- "Konto des Begünstigten / Empfängers": the bank account number of the recipient

- "Bankleitzahl" (BLZ): the bank code of the recipient

- "bei / Geldinstitut": the name of the recipient`s bank

- "Kundenreferenznummer" or "Verwendungszweck": your customer number or reference number of the transaction, of the invoice or the purpose of the transferred money, like e.g. "Miete" (rent) or "Spende" (donation).

Underneath, you will have to fill in the same information for yourself, if not already printed – bank account, bank code etc. Do not forget to sign!

After having accomplished all this, make sure that you receive a "Beleg". This means any kind of paper that proves you have transferred the money. This can be your "Kontoauszug" (bank statement), a printout of your Internet banking transaction or the bank´s stamp on your copy of the "Überweisung". This ensures that you will get no "Mahnung" (reminder letter) – and gives you proof that you paid if you do.

Others ways of paying regular bills are:

- "Dauerauftrag" (standing order)

- "Einzugsermächtigung" (direct debit order).

For these, it is necessary to have a bank account in Germany.

"Ich möchte ein Konto eröffnen" is the phrase that brings you closer to this. But be aware of what might follow: A long and detailed conversation in German!

To read more about Renate Graßtat, you can click on Education- Language Instruction under Expatica's business directory.

Do you have questions about the German language? Write to Expatica and Renate Graßtat may use your question in a future column.

Renate is currently offering new classes on "Survival German", Business Language, Understanding the Media, German Literature and Exam Preparation 2006. Visit http://www.learn-german.de/ or call +49 (0) 30 615 26 35 for more information.

9 May 2007

Copyright Renate Grasstat 2007

Subject: Ask our German teacher, learning German in Berlin, German language, German teacher in Berlin, German instruction, German lessons, German classes