Cashback Credit Cards Germany

Q: Do all credit card purchases earn cashback?

Not always. Some providers exclude categories like cash advances , gambling , tax payments , or utility bills . Always check the terms to know what qualifies.

Q: Is cashback taxable in Germany?

In most cases, no . Cashback is considered a rebate or discount on purchases, not income. However, if you're self-employed and use the card for business, you may need to deduct it from your expense reporting.

Q: Can I earn cashback on foreign currency purchases?

Sometimes. Some cards offer cashback on non-euro transactions , but foreign fees (usually 1.5–2%) may reduce your effective gain. Cards with 0% foreign fees are best if you shop or travel abroad often.

Q: What happens if I return an item I earned cashback on?

If you return the item, the cashback is usually reversed . You’ll see a deduction in your next statement or cashback balance.

Q: Is it worth paying an annual fee for higher cashback?

Only if your spending volume or bonus categories justify it. If you spend a lot in areas with high reward rates, a paid card can be more profitable than a free one with lower returns.

A cashback credit card in Germany lets you earn money every time you spend – but only if you pick the right one. While some cards offer generous rewards on everyday purchases, others hide low rates behind high fees.

Whether you’re fueling up, shopping online, or covering monthly bills, a good cashback card can put real savings back in your pocket. Here’s how to find the best deals and avoid the traps.

What Is a Cashback Credit Card?

A cashback credit card gives you a percentage of your spending back – either as cash, statement credit, or account balance. Unlike rewards or travel cards, cashback cards focus on simplicity: the more you spend, the more you earn. It’s an easy way to save on everyday purchases without tracking points or reward categories.

Most cashback credit cards in Germany offer 1% to 2% back on general purchases. Some go higher in specific categories like fuel, groceries, or online shopping. Payouts are usually monthly or quarterly, depending on the provider. And the best part? You can earn automatically just by using your card as usual.

How Does Cashback Work?

Cashback is simple on the surface: you spend, and a percentage comes back to you. But the structure, payout method, and conditions vary across providers. Understanding the different types of cashback can help you choose a card that fits your spending habits and actually delivers value.

Flat-rate cashback

With flat-rate cards, you earn the same percentage — usually 1% to 1.5% — on all purchases, regardless of category. It’s easy to understand and ideal for users with varied spending patterns. No tracking or planning needed.

Example: Spend €1,000 → get €10 back (1%)

Tiered cashback

Tiered systems offer different rates depending on how much you spend or where you spend it. For example, you might get 2% on groceries, 1% on fuel, and 0.5% on everything else. It rewards specific spending categories.

Tip: Check if tiers reset monthly and whether categories are fixed or changeable.

Rotating categories

Some cards offer higher cashback (up to 5%) on selected categories that change quarterly — e.g., restaurants in Q1, electronics in Q2. You often need to activate these offers manually.

Downside: You have to track categories and remember to opt in.

Bonus cashback or welcome offers

Many cashback credit cards offer introductory bonuses, such as €25 cashback after spending €500 in the first 3 months. Others may offer temporary boosted rates, like 5% for the first 90 days.

Always read the terms – these bonuses often have minimum spend requirements.

How you receive cashback

Cashback is typically credited in one of the following ways:

Statement credit: Reduces your monthly balance.
Direct payout: Sent to your bank account or PayPal.
Account balance credit: Added as credit on your card.
Some cards let you accumulate cashback until a minimum threshold is reached (e.g., €10 or €20) before payout.

Pros and Cons of Cashback Credit Cards

A cashback credit card can be a great way to earn passive savings on your everyday spending – but only if the rewards outweigh the costs.

Pros of Cashback Credit Cards

Real value on everyday spending: Earn back money on groceries, fuel, online shopping, and bills.
Simple to use: No points or conversions – just a percentage back.
Instant savings: Some cards offer statement credits that reduce your monthly balance.
Bonus offers: Many providers include welcome bonuses or promotional cashback rates.
No need to travel: Unlike travel cards, cashback works locally and online.

Cons of Cashback Credit Cards

Low base rates: Many cards offer just 0.5–1% outside selected categories.
Caps and limits: Some cards limit monthly cashback or require minimum spending.
Annual fees: Premium cashback cards may charge €30–€100 per year.
SCHUFA required: You’ll often need a positive credit score and proof of income.
Rotating categories require tracking: You must opt in and keep up to date with changing categories.

How to Choose the Best Cashback Credit Card in Germany

Not all cashback credit cards are worth it. Some offer solid rewards with no fees, while others look attractive but hide limits and charges. To find the best cashback card for your needs, focus on how — and where — you spend most of your money.

Key selection criteria

Cashback rate – Look for at least 1% base cashback. Bonus rates above 2% are ideal if they apply to your common spending categories.
Categories that match your habits – Choose a card that rewards your regular expenses: fuel, groceries, online purchases, subscriptions, etc.
Monthly or annual cashback caps – Some cards limit how much cashback you can earn. Make sure the cap doesn’t reduce your actual return.
Fees vs benefits – If the card has an annual fee, calculate whether your cashback will exceed that cost.
Payout method – Decide whether you prefer automatic statement credits or manual redemption options.
Intro bonuses – Look for welcome offers with low minimum spend thresholds (e.g., €500 in 3 months).
Foreign usage – If you spend abroad, check whether cashback applies to non-euro payments and what the foreign transaction fees are.
Mobile app quality – A good app makes it easier to track cashback, activate offers, and control spending.

Tip: For most users, a free card with consistent cashback on all spending offers the best long-term value — unless you spend heavily in specific categories where tiered or rotating bonus rates apply.

Tips to Get the Most Out of Your Cashback Credit Card

A good cashback card can save you money — but only if you use it wisely. By planning your spending and understanding how cashback is calculated, you can maximize every euro you earn back.

Use your card for all eligible purchases

Put recurring expenses like groceries, fuel, streaming, and online shopping on your cashback card. The more you spend in cashback-eligible categories, the more you earn — especially if you use it instead of cash or debit.

Pay your balance in full every month

Interest charges quickly cancel out cashback gains. Always pay the full balance before the due date to avoid losing more in fees than you earn in rewards.

Track category bonuses and activation windows

If your card offers rotating cashback categories, mark your calendar and activate them via app or web portal. Unused bonus categories = lost earnings.

Combine with loyalty programs

Some cards let you earn cashback and loyalty points at the same time. For example, use your card at supermarkets that offer their own points or cash programs to double up on rewards.

Watch for special offers

Banks often run seasonal promotions or partner bonuses (e.g., 5% back at selected retailers). Enable push notifications or email alerts so you don’t miss limited-time deals.

Set spending alerts or limits

To stay within budget while chasing cashback, use the app to set custom limits or alerts. This helps prevent overspending just to earn minimal returns.

Redeem smart

If your card lets you choose how to use your cashback (e.g., payout, credit, vouchers), pick the highest-value option. Some providers boost your rewards if redeemed via selected partners.

FAQ

Frequently Asked Questions

Not always. Some providers exclude categories like cash advances, gambling, tax payments, or utility bills. Always check the terms to know what qualifies.

In most cases, no. Cashback is considered a rebate or discount on purchases, not income. However, if you’re self-employed and use the card for business, you may need to deduct it from your expense reporting.

Sometimes. Some cards offer cashback on non-euro transactions, but foreign fees (usually 1.5–2%) may reduce your effective gain. Cards with 0% foreign fees are best if you shop or travel abroad often.

If you return the item, the cashback is usually reversed. You’ll see a deduction in your next statement or cashback balance.

Only if your spending volume or bonus categories justify it. If you spend a lot in areas with high reward rates, a paid card can be more profitable than a free one with lower returns.