We have to stay out: What applies to dogs at some dealers also applies to euro banknotes at some dealers. They are no longer accepted everywhere. What this means for consumers.
Did you only leave the house with cash today? If you then end up in a shop where no cash is accepted, the beautiful dress will have to stay put, willy-nilly, and the purchase of the new mobile phone will have to be postponed. In most cases, there is no right to cash payment.
Euro notes and coins are legal tender in the European Union and as such should always be accepted as a means of payment, says Christian Bereska, lawyer and chairman of the Civil Law Committee of the German Lawyers’ Association (DAV). However, a distinction must be made between “whether state authorities impose such bans on cash payments” or whether private companies do so.
The European Court of Justice ruled in 2021 (Ref.: C-422/19, C-423/19) that public creditors are obliged to accept euro banknotes if they owe money. “Something different applies in the relationship between private individuals,” says Christian Bereska. Here the parties are allowed to make other agreements – for example, to conclude contracts with a ban on cash payments.
For their effectiveness, however, the provider must clearly emphasize that payment in cash is generally excluded, according to the lawyer. “Anything else could be invalid as a surprise clause.” According to Sascha Straub from the Bavarian consumer advice center, a sign in the sales room is sufficient for information. In addition, an individual agreement is not necessary.
Incidentally, even a retailer who generally accepts cash payments can, according to consumer advocate Straub, “refuse to accept more than 50 coins or to pay more than 200 euros in euro coins”.
If cash payment is not possible, consumers usually only have to use a debit or credit card – either in physical form or in the form of a digital copy stored on their smartphone.
Helena Klinger from the Institute for Financial Services (IFF) also refers to the payment option for some retailer apps. Anyone who has created a link to their checking account, for example, can then also pay via the app of the respective retailer. If you don’t have all of that with you, you’ll leave the store empty-handed, at least that day.
For retailers, the advantages of not having to pay cash are obvious: “It is not necessary to check for counterfeit money with every payment, nor does it have to be a time-consuming count of the cash balance at the end of the day or when there is a change of employee,” says Helena Klinger.
In addition, the sometimes complicated and expensive procurement of change is no longer necessary. And the safe transport of sales to the bank does not have to be organized either, says consumer advocate Straub. Card payments often cost merchants a small fee per transaction.
For customers, on the other hand, consumer advocate Straub rates the omission of the cash payment method as disadvantageous. It cannot be assumed that the cost savings that retailers would have by eliminating the payment method would be passed on to customers. Shopping without leaving data traces is then also no longer possible.
However, Helena Klinger still finds a few advantages from the customer’s point of view: “Above all, it is quick and easy, since there is no need to withdraw cash from the account or to search for the right amount of money.” This shortens the time of a payment transaction at the checkout – for the payer as well as for all waiting customers. “Cashless payments also appear to be more advantageous in terms of the environmental balance and from a hygienic point of view,” says Klinger.
Will the banning of cash from shops set a precedent in the future? According to Helena Klinger, this primarily depends on the customer group and the business area of ??the retailer: “While cashless payment appears acceptable for technology-savvy consumer groups, the concept will tend to be rejected by consumers for everyday supplies from supermarkets, bakers or drugstores. “
Helena Klinger considers a compromise solution at some retailers to be conceivable in the future – such as accepting cash for amounts up to 100 euros, but cashless payment could be required for everything that goes beyond that.
Sascha Straub does not believe that cashless payment methods will prevail in the long run. “Even for merchants, cash will at least remain an important backup that no one else can make a profit from and that works even if the card reader is defective or has been hacked.” Something else is only conceivable if a digital euro should replace the functions of cash in the future.
