German retailers face rising payment fees as cashless transactions dominate sales
German retailers are grappling with escalating payment fees as cashless transactions soar. With card payments now accounting for over 60% of retail sales, the cost of processing these transactions is eating into profits. A recent study underscores how the girocard system helps businesses keep fees lower than international alternatives.
The girocard network, overseen by EURO Kartensysteme GmbH, serves as Germany’s primary debit card and ATM system. It connects banks, savings institutions, and retailers under a unified framework. During peak shopping periods like the festive season, card payments reign supreme—over €300 billion in sales were processed this way in 2022 alone.
Most consumers prefer a payment method that supports retailers, yet two-thirds still believe cash is the cheapest option. Research indicates that shifting from girocard to international debit schemes could hike transaction costs by 50% for the average business. The girocard’s lower fees, extensive acceptance, and robust security ratings make it a favored choice for many merchants.
Despite its benefits, the study did not disclose how much individual businesses save annually by using girocard. Instead, it focused on customer fees, such as the €10-12 yearly charge for issuing a girocard debit card.
As card payments continue to rise, the girocard system remains a vital tool for keeping costs in check. Retailers reap the benefits of its lower fees and trusted reputation, while customers enjoy wide acceptance. The challenge now is ensuring consumers recognize its advantages over cash and pricier card alternatives.
