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"Card payment only": Are merchants allowed to refuse cash payment? - Practical Tips

“Card payment only”: Are merchants allowed to refuse cash payment?

by Pramith

For people who like to pay with cash, it is very annoying when only card payment is possible in a shop. This raises the question of whether a trader is allowed to refuse payment with notes and coins at all.

Only card payment possible – is that legal?

Germany is still a country of cash lovers. In most cases, the euro is also accepted without complaint in the form of paper money and coins. But what if a merchant insists on card payment and does not want to accept cash?

  • In Germany, the euro is the legal tender. This means that payments in this currency may be insisted on. A trader does not have to accept dollar notes, francs or other currencies.
  • The fact that the euro is the legal tender in Germany does not mean, however, that it has to change hands in the form of coins or notes. For payment in card form is also made in this currency.
  • In Germany, the so-called freedom of contract applies. This means that a merchant is allowed to decide for himself whether he accepts only card payment, only cash payment or both. So if your cash is refused, there is nothing you can do about it.

How to tell if a shop only accepts card payments

Whoever is standing at the checkout with a full shopping trolley is rightly upset when their cash is not accepted at the till. If in doubt, you should therefore find out beforehand which method of payment is accepted.

  • It is currently highly unlikely that you will enter a shop in Germany that refuses to accept cash. However, the tech chain Gravis has announced that it will only accept card payments in the future. It is quite possible that other retailers will follow this example. In other European countries, this trend is already widespread.
  • Which type of payment is accepted in the shop must, however, be made clear by a trader before the purchase contract is concluded. For example, by marking it accordingly in the entrance area or at the checkout.
  • If you are unsure whether or not you can pay with cash, do not hesitate to ask at the branch. The staff at a business can give you precise information on this. Of course, the same applies if you want to know whether you can pay by card.

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