Honly left the house with cash today? If you then end up in a shop that doesn’t accept cash, your beautiful dress will inevitably get stuck and the purchase of your 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 government agencies impose such bans on cash payments” and 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 void 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.
Sufficient for the effective exclusion of cash payments: information signs in the entrance area of a shop
Source: dpa-tmn/Jens Kalaene
By the way: According to consumer advocate Straub, even a retailer who generally accepts cash payments can “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.
Cashless payment via merchant app
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.
Shopping without data traces
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 some advantages from the customer’s point of view: “Above all, it is quick and easy, as 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.
Total cash ban unlikely
Will the banning of cash from shops set a precedent in the future? According to Helena Klinger, this depends primarily on the customer group and the business area of the retailer: “While cashless payment appears acceptable for technology-savvy consumer groups, the concept is more likely to be rejected by consumers when it comes to everyday supplies from supermarkets, bakers or drugstores. “
Helena Klinger considers a compromise solution at some retailers to be conceivable in the future – for example, accepting cash for amounts of up to 100 euros, but cashless payment could be necessary for everything that goes beyond that.
Sascha Straub does not believe that cashless payment methods will prevail in the long run. “For retailers, too, cash will at least remain an important back-up that no one else can use to make money and that works even if the card reader is defective or has been hacked.” should replace.
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