Dealers enjoy freedom of contract
Due to the still-present corona pandemic, most restaurants and retailers want contactless payment via card or smartphone in order to contain the spread of the virus as best as possible.
The population should continue to keep a certain distance and avoid physical contact, which could result from paying with cash. This is a policy, but does that mean that cash can be refused?
There is a simple answer to this, as Ulrich Binnebößel from the German Trade Association explains in an interview with n-tv, “Basically, the principle of freedom of contract applies.”
This means that the merchant can refuse to accept cash.
Businesses must give clear instructions
However, in order for the retailer to be able to make use of the contractual freedom, it must make this clear in advance. For example, certain types of payment, i.e. cash or card payment, can be excluded by means of a sign at the cashier or at the shop entrance.
The selection of which banknotes are accepted and which are not may also be freely determined, provided that this is made clear to the consumer. Binnebößel explains, “You see this quite often at gas stations where large bills are not accepted.”
The consequence for the consumer is that they have to bow to the preferences of the shops and should therefore look out for any information in advance in order to avoid surprises at the checkout.
This is precisely why a real trend towards cashless payments can be seen in Germany, which was further accelerated by the corona pandemic. As a study by the banking association shows, over 60 percent of Germans now pay by mobile phone or card, with 26 percent of the test persons adapting this behavior due to the virus.
Nevertheless, it seems that a large proportion of Germans are still attached to cash, as 37 percent of those surveyed stated that they had not adjusted their payment behavior even during the pandemic. The over-60s make up the majority here.
On the other hand, the younger generations – those up to the age of 50 – preferred to make contactless payments even before the pandemic, and the 50 to 59-year-olds adjusted their behavior accordingly during the crisis.
Henry Ely / Editor finanzen.net
Image sources: Yulia Grigoryeva / Shutterstock.com