AbstractDirect methanol fuel cells, DMFCs, have for long been considered as a superior alternative to rechargeable batteries for various portable applications with respect to significantly higher theoretical power densities and faster recharging by simply filling up with new liquid fuel. In reality, however, DMFCs so far have much low power densities, suffer from high fuel losses, and require extremely expensive catalysts at high loadings. Here we show that an until now not considered process at the DMFC electrodes may cause these severe losses in performance. The process is that electrons generated at nano‐structured catalyst loaded electrodes become solvated into the surrounding electrolyte. Taking this new process and resulting reaction mechanism(s) fully into account, material and catalyst/electrode design should be reconsidered to realize the true potential of DMFCs.