Consequences for consumers: giro cards soon without Maestro function

The blue and red logo will soon disappear from giro cards.

Consequences for consumers: giro cards soon without Maestro function

The blue and red logo will soon disappear from giro cards. Owners of such Maestro cards have to be prepared for changes abroad. Experts explain what that means in detail.

According to the German banking industry, with 100 million copies in use, the giro card is by far the most used bank card in Germany. However, many of the users of giro cards with a Maestro function now have to adapt to changes. Because the payment system with the blue and red logo should be a thing of the past from July 1, 2023.

What does the abolition of Maestro mean for everyday life? What changes do consumers have to prepare for? Do they maybe even have to worry about getting a new card? Answers to important questions:

What has the Maestro payment system been used for so far?

According to the Deutsche Kreditwirtschaft (DK), owners of giro cards with a Maestro symbol on them could not only withdraw money and pay with their card in Germany. Thanks to the Mastercard payment system, this has so far also been possible abroad without any problems. "Everywhere where customers see the acceptance mark at ATMs or checkout terminals, they can use their card," explains the DK.

Why is the Maestro function being abolished?

Mastercard itself explains in a message that the Maestro function is no longer up-to-date and will therefore be abolished. "Where growth in online commerce is far outpacing that in retail, it's time to refresh Maestro cards," the company writes. Cards with the Maestro function were created for physical use. This leads to problems in online trading because, for example, the code numbers of Maestro cards are not compatible with many online portals.

However, the Baden-Württemberg Consumer Center (VZBW) suspects another reason behind the abolition: Mastercard wants to earn more from online sales, according to a statement. So far, the giro card has been a standard means of payment in Germany. If payments are no longer possible because the Maestro function is no longer available, customers will have to use a Mastercard credit or debit card more often instead of direct debit. This not only increases the share of credit and debit cards on the German market. The online shops would also have to pay more fees to the company for payments with these cards.

How do I know if this is affecting me?

So far, banks have offered various giro cards with different payment systems, explains Urban from the North Rhine-Westphalia Consumer Center (VZNRW). In addition to the Maestro function, there is also the V-Pay function, which belongs to the provider Visa. "Accordingly, you will usually find different symbols for the individual functions on a giro card." If you recognize the red and blue Maestro logo on your giro card, you are affected by the changes.

Until when can I still use the debit card with Maestro function?

"From July 2023, banks and savings banks will no longer be allowed to issue new cards with a Maestro function," says Christian Urban. However, cards issued up to that point could still be used until their expiry date. A tip from the expert: "You can find the expiry date on the card." Since the giro cards are still valid for a few years in most cases, the Maestro function will not disappear from one day to the next.

Nevertheless, the VZBW points out that banks can decide for themselves when they want to switch to another payment function. "Your bank must tell you exactly when you can no longer use your Maestro card," said consumer advocates. "You should therefore keep an eye on the information from your bank and find out about the advantages and disadvantages of new offers," advises Urban.

So do I have to take care of a new card myself?

no You only have to act when the bank offers you a new card or changes to the account, according to the VZBW. "Your bank will contact you about this." After all, you first have to agree to the changes and can get advice from the bank beforehand. A piece of advice from consumer advocates: "Ask in particular about the differences between the new card and your previous card."

What are the consequences of the abolition for me?

"The termination of the Maestro function actually only affects the use of the card abroad," says Urban. Because the abolition of the payment system means that you can no longer use the giro card to pay or withdraw money abroad as before.

According to the VZBW, this does not mean that the giro cards will no longer work abroad. "The banks can fall back on other systems to enable foreign assignments." Consumers shouldn't worry about that: there will be other ways of getting money abroad, the statement says. "Whether that will be via a different payment system or a second card will probably be seen in the next few months."

In Germany, the giro card remains fully operational even without the Maestro function. "In the future you should be able to pay and withdraw money with a giro card as usual," it continues.

Do I have to be prepared for disruptions and changes in the café or supermarket around the corner?

"In Germany, no conversion of terminals is necessary," says the DK. Since the end of the Maestro function only affects the use of the card abroad, the giro cards in Germany should continue to be ready for use according to VZNRW without any problems.

What could the abolition of the Maestro function entail?

Many banks are currently offering more debit cards from Mastercard and Visa as an alternative to the giro card, says Urban. "So far, however, not all shops accept these cards." Shops would therefore have to convert in some cases, which would result in higher costs for retailers - for example due to fees charged by debit card companies. "These could in turn lead to higher prices locally."

How exactly do checking, debit and credit cards differ?

According to the DK, all three cards have one thing in common: customers can use all cards to make cashless payments and withdraw money from machines. With a debit card, the amount is then debited directly from the checking account. The Girokarte is the best-known debit card in Germany. With credit cards, the sales are collected and usually debited from the checking account once a month.