Do you transfer 700 € rent yourself every month? That's different from a direct debit, where the recipient pulls the money from your account.
Who moves the money?
Transfer (Überweisung)
You instruct your bank to send money to another account.
Standing order (Dauerauftrag)
You set the amount, recipient and interval once. The bank then transfers automatically on a regular basis.
Direct debit (Lastschrift)
You allow a company or recipient to pull money from your account.
Debit card (Debitkarte)
The amount is charged to your account directly or shortly after.
Credit card (Kreditkarte)
The purchase is first collected on the card account and billed later according to the card model.
The five basic terms
- Transfer (Überweisung)
- I send money once.
- Standing order (Dauerauftrag)
- My bank transfers a fixed amount regularly, one that I set up.
- Direct debit (Lastschrift)
- I allow a recipient to pull money from my account.
- Debit card (Debitkarte)
- The card purchase charges my account directly or shortly after.
- Credit card (Kreditkarte)
- The card purchase is billed later according to the card model.
With a transfer, you send the money.
You instruct your bank to send an amount from your account to another account. For this you need the recipient's name, their IBAN, the amount and usually a payment reference, for example an invoice number.
Typical: paying an invoice, sending money to friends, transferring a deposit, one-off payments.
With an instant transfer, the money arrives at the recipient's account within a few seconds. A normal transfer usually arrives on the next business day.
Check the recipient, IBAN and amount before sending. If the money ends up in the wrong account, you won't automatically get it back.
With a standing order, you determine the regular payment.
A standing order is a transfer that your bank automatically repeats at a fixed interval.
Example: 850 € is transferred to the landlord on the 1st of every month.
- You set it up yourself, in online banking or at a branch.
- You determine the amount, recipient and timing.
- You can generally change or cancel it at any time.
Typical: rent, fixed savings amounts, other recurring payments of the same amount.
With a direct debit, the recipient pulls the money.
You give a company or another payee permission to withdraw money from your account. This permission is called a SEPA direct debit mandate (SEPA-Lastschriftmandat).
Example: Your electricity provider automatically collects the advance payment every month.
- Depending on the contract, the amount can vary, for example with a phone bill.
- Before the first withdrawal, you usually get a notice stating the amount and date.
- Check your bank statement (Kontoauszug). Take a close look at any withdrawals you don't recognize.
Standing order or direct debit?
Standing order (Dauerauftrag)
„I send money regularly.“
- set up by me
- amount set by me
- bank executes it regularly
Typical: rent with a fixed amount
Direct debit (Lastschrift)
„The recipient pulls the money.“
- mandate given
- recipient initiates the withdrawal
- amount can vary depending on the contract
Common for: electricity, phone, insurance, membership
What is a SEPA direct debit mandate (SEPA-Lastschriftmandat)?
With a SEPA direct debit mandate, you allow a payee to withdraw money from your account.
You sign a SEPA direct debit mandate at the gym. After that, the gym may withdraw the agreed fees from your account.
- 1You sign the mandate
- 2The recipient announces the withdrawal
- 3The amount is withdrawn
- 4You see it on your bank statement (Kontoauszug)
Not every card is the same
„Visa“ or „Mastercard“ alone doesn't tell you whether a card is a debit or a credit card. If it says „Debit“ on the card, it's a debit card (Debitkarte).
Girocard
- usually linked directly to a German current account (Girokonto)
- payment is charged to the account
- mainly used in Germany
Debit card (Debitkarte)
- linked directly to the current account
- amount is charged directly or shortly after
- e.g. Visa Debit or Debit Mastercard
Credit card (Kreditkarte)
- own card account
- purchases are collected
- billed later, depending on the card model
A debit card is directly linked to your current account. When you pay, the amount is usually withdrawn from your account directly or within a few days.
- Account balance: 1.000 €
- Purchase: −50 €
- Account balance afterwards: 950 €
With a classic credit card, your purchases are first collected on the credit card account. After that, you receive a statement. What happens next depends on the card model.
- 1Purchases in the month
- 2Statement
Charge Card
Purchases are collected and regularly withdrawn in full from the current account.
Revolving card (installment payment)
You can pay part of the statement later. Interest usually applies to the outstanding amount.
If only part of the credit card statement is paid, the outstanding amount may accrue interest. This can significantly increase costs.
What is commonly used when?
This is typical usage, not a recommendation.
- One-off invoice
- often a transfer (Überweisung)
- Same amount every month
- often a standing order (Dauerauftrag)
- Company withdraws automatically
- often a direct debit (Lastschrift)
- Paying in a shop
- Girocard, debit card or credit card
- Paying online
- depending on the retailer: card, direct debit, transfer or another payment service
More terms
The IBAN is the international account number. You need it for transfers and direct debits, and so others can send you money.
SEPA is the shared euro payment area. As a result, transfers and direct debits work under the same rules in many European countries.
The BIC identifies a bank. For euro payments within the SEPA area, the IBAN is usually enough today.
On your bank statement, you can see every transaction. A simplified example:
Simplified example
| Posting date | Recipient / sender · Payment reference | Amount |
|---|---|---|
| 01.10. | Arbeitgeber GmbHOctober salaryCredit | +2.100,00 € |
| 01.10. | LandladyNovember rentStanding order | −850,00 € |
| 05.10. | Electricity providerAdvance payment, mandate …Direct debit | −72,00 € |
| 07.10. | SupermarketCard paymentCard payment | −34,90 € |
| 09.10. | Max MusterConcert ticketsTransfer | −45,00 € |
Next to the posting date, you'll often see the value date. That's the day from which the money actually counts in the account.
- Only approve a TAN for actions that you started and checked yourself.
- Never share your PIN with anyone.
- Your bank never asks for login details by email, text message or phone.
- Check the recipient and amount before every approval.
- For unfamiliar activity: contact your bank directly, using a number you already know.
What happens if there isn't enough money in the account?
- A card payment can be declined.
- A standing order may not be executed.
- A direct debit can bounce. This is called a returned direct debit (Rücklastschrift).
- The invoice remains unpaid regardless.
- Depending on the situation, fees or other costs may arise.
With a SEPA direct debit backed by a mandate, you can request a refund from your bank within 8 weeks of the withdrawal, without giving a reason. For a withdrawal without a valid mandate, a longer period of up to 13 months applies.
A reversal doesn't end the contract. If the money is actually owed, the claim remains.
If you don't recognize a withdrawal or think it's wrong, first check the payee and the contract. If unsure, your bank can help.
- PIN: never share it, and don't keep it together with the card.
- Card number: only enter it for payments you trust.
- Card verification number (the three digits on the back): don't hand it out carelessly.
- Lost your card: have it blocked immediately, via your bank or the emergency blocking hotline 116 116.
Related topics
General information on how payments work. MeaNext does not recommend any banks, cards or financial products. The exact terms are in your contract with the bank.
Bürgerliches Gesetzbuch § 675x – refund for direct debits
- State of information
- October 2026
- Last checked
- 11/10/2026
Bürgerliches Gesetzbuch § 676b – time limit for unauthorized payments
- State of information
- October 2026
- Last checked
- 11/10/2026