Germany is no different from anywhere else. Money makes the world go round.
While Germans are generally friendly they like to keep the economy ticking over. Accommodation obviously costs money, and so does travel and food. You need some local currency.
Continue reading to learn about money in Germany, as it applies to travelers.
Currency in Germany
The currency in Germany is the Euro. The Euro is used throughout most of Europe and has been Germany’s currency since 2002.
The Euro is generally written as € or Euro. Normally, the symbol comes after the value, but this can vary across Europe.
Any Euro coins or notes that you have from Italy or France are equally valid here.
While the Euro notes are the same across countries, German coins have their own markings on the rear, often featuring significant cultural icons like the Brandenburg Gate.
However, you can use any Euro coins in any European country.
Using Cash in Germany
Cash is still commonly used in Germany.
For travelers, the most important place you will likely need cash is for small purchases and tips. While most merchants accept credit and debit cards, some smaller shops, especially in rural areas, prefer and only accept cash.
When enjoying a meal at a restaurant, it’s customary to leave a small tip, usually around 5-10% of the bill, and cash is often appreciated for this. A quick snack, like a pretzel from a street vendor, costs around 2-3€, so having cash on hand for these small treats is handy.
At major tourist spots like museums or attractions, credit cards are widely accepted, but it’s a good idea to have cash for smaller exhibitions or souvenir stands that may not accept cards.
The run up to Christmas is a great time to visit Germany for the Christmas Markets but make sure you have cash, as many market vendors may not take cards.
Public transport is convenient, but you can’t pay on board most buses and trams! You need to buy your tickets in advance, either via an app or at vending machines found at stations. These machines usually accept both cash and cards but even today they sometimes only acceot local debit cards. Keep some cash on had for this.
Using Credit Cards in Germany
In Germany, credit and debit cards are widely accepted, especially in hotels and restaurants in urban areas. However, smaller establishments, particularly in rural regions, may only accept cash, so it’s a good idea to have some on hand.
Most restaurants will take cards, but small snack shops or street vendors might not. If you plan to pay more than 10€, you can usually use a card without any issues. Just remember, while it’s generally possible, it’s always wise to double-check before you order.
Taxis in Germany typically accept cards, but occasionally, drivers may say their machine is out of order. To avoid any hassle, it’s best to use ride-hailing apps like FreeNow or Uber, where you can book and pay in advance, ensuring a smoother experience.
Swiping Credit Cards in Germany
Germany employs the European chip card system with a pin number for secure transactions. The outdated magnetic strip can still be swiped in many machines.
In the modern era, contactless payment via NFC technology is standard across Germany, allowing for tap-and-go purchases.
There can be limits to tap and go transactions. For instance, my card allows up to €50 in one go, while another offers a €100 limit. If you go above the limit the retailer might tell you to insert your card, just let them know that it needs to be swiped instead.
Paying in Dollars on Credit Card
In Germany, a lot of card readers will detect if you are using a foreign card. This happens most often in places like hotels that expects tourists and travelers. If your bank is based in the US, for example, you’ll often be given the choice to pay in dollars. This allows you to see the exact amount in your home currency right away.
However, there is a significant drawback. When the merchant handles the currency conversion, they usually tack on a hefty commission within the exchange rate. ALWAYS PAY IN EUROS to secure the best rates. Allow your home bank or card issuer to process the exchange rate instead.
In my experience, sellers never provide a better exchange rate than what my bank would offer back home.
Apple Pay and Google Pay in Germany
Most places today that accept cards accept both Apple Pay and Google Pay. These are both effectively card payments anyway. Modern card machines all have NFC capability and read from your phone.
Take a card with you as back up. Phones can go missing. You will probably need some cash and a card for the ATM is a good idea as well. Also you will be surprised how much battery you burn through on your phone while out and about as a tourist.
Exchanging Dollars in Germany
Like elsewhere in Europe the Euro reigns supreme. For the most part there are no more money exchange places and banks don’t change money. There are a few exchange offices around the airports and major tourist sites.
Despite cash being important in Germany, bank branches only change cash for their customers. If you don’t have an account you won’t be able to change money.
The few exchange places that are left, are normally based in the tourist areas of city centers or at the airport.
However these places have terrible exchange rates. In an emergency fine, but realistically you should not use them.
Exchange rates in walk in exchange offices can be up to 15% worse than the interbank rate for that day. While you shouldn’t expect to pay that rate, your own bank will probably give you about a 5% rate if you get some Euros before you leave. This will give you a better exchange rate.
Make sure your ATM card works in Europe and use it to avoid massive exchange fees. Check with your bank to know what fees they charge for using your card abroad.
Withdrawing Euros direct from an ATM is the best idea. This is (every time I have looked at it) the cheapest way to get Euros.
ATMs in Germany
ATMs in Germany are called Geldautomaten. You’ll find them at banks, shopping centers, and in other public places where cash is needed.
There are two types of ATMs in Germany: those operated by banks and private machines. Private ATMs can charge high fees for withdrawals, in addition to any fees your own bank might apply. Bank ATMs generally do not charge extra fees for using foreign cards.
To stay safe, use ATMs that are located in well-lit, busy areas or ideally inside bank branches. And as a general rule, always cover your hand when entering your PIN.
Tipping in Germany
Tipping in Germany is appreciated but not obligatory in the same way as in other countries. As the name suggests Trinkgeld is literally drink money. It isn’t a wage like in the US but rather something extra on top.
In Restaurants food costs include a reasonable wage, but it’s still common to round up the amount or leave a small tip if the service was good.
Tipping is common in most services, such as taxis, where rounding up the fare is common, or at hotels, where a few euros are given to porters or housekeeping.
Though tipping is not obligatory, it’s a good way to acknowledge good service. Being polite when tipping is key, and always thank the person for their service.
Tipping in Restaurants in Germany
Tipping in Restaurants is quite common. If the service is bad a tip is not necessary.
Generally though German service is good and efficient.
A standard tip about 10%, depending on the level of service and the establishment. For smaller bills, rounding up to the nearest euro is perfectly acceptable.
Unlike in some countries, tipping in Germany is often done by handing the tip directly to the server while paying the bill, rather than leaving it on the table.
When paying by card, you can inform the server how much you’d like to add to the total, or, even easier, just give them the new total.
Tipping Guides and Drivers in Germany
In taxis, tipping the driver is normal. Generally locals just round up the bill.
If you are on tour then tip your driver and guide. Often Germans will leave a 5 Euro tip for a guide if they do a tour as a couple. If it is a full day tour then maybe a ten Euro note would be more suitable.
A couple of Euros for a driver is nice, a bit more maybe if he helps you with heavy luggage.
Tipping in Bars in Germany
Tipping in Bars is generally the same as in Restaurants in Germany.
Most bars have table service so tip your server like you would the restaurant server. Bartenders almost always get the loose change, maybe 20¢ per drink, maybe €1.20, depending on if the beer cost €3.80 or €4.80.
Summary
The Money in Germany is the Euro, same as most EU countries. Cash is still widely used, though card payments are common.
Smaller businesses with fewer transactions often still don’t have card payment machines. Think of small guest houses or old cafes in the countryside. Make sure you have some cash on hand.
