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MONEY

EXPLAINED: Why (and where) it’s still difficult to pay with card in Germany

Paying with card in cash-loving Germany can often be a challenge. But a massive technical problem means people have been struggling to pay by card for nearly a week in some shops - and the problem is still not fixed.

Published: 30 May 2022 16:54 CEST
A drugstore in Bremen has a sign on the door that reads: 'No card payment possible'.
A drugstore in Bremen has a sign on the door that reads: 'No card payment possible'. Photo: picture alliance/dpa | Sina Schuldt

What’s happening?

Whether it’s in department stores, at the supermarket or at a restaurant – people across Germany have not been able to pay by card in many places since Tuesday last week. 

As The Local reported on Friday, the issue is linked to a problem with a commonly used card payments terminal from US company Verifone.

According to reports, the H5000 card machines at multiple retailers and businesses experienced a software malfunction that stopped it processing payments. 

The affected devices seem to be unable to connect to the network operator to carry out the transaction. After two attempts, the transaction is automatically considered “not authorised” and the payment cannot go through. 

Verifone started rolling out an update on Friday afternoon aimed at fixing the problem, but older devices have to be “manually” updated for this, meaning it’s taking longer to fix than anticipated. 

Shops and businesses in Germany with the older models have been hit especially hard by the failure, with customers only able to pay in cash – including on Saturday which is the busiest time for many retailers. 

READ ALSO: Why are card payments getting rejected in Germany?

In the below tweet, ZDF’s satirical news programme Heute Show pokes fun at Germany’s technical progress compared to other countries. The caption says: “Card payments have been broken at some German retailers since Tuesday.”

Which shops are affected – and where it is fixed?

Shops and businesses experiencing the outage usually have a sign on their door that says: ‘Keine Kartenzahlung möglich’ or ‘no card payment possible’.

In the last days it has affected independent businesses as well as larger chains.

Discount supermarket chain Aldi Nord said it had started to exchange affected card readers over the weekend, and it hopes to replace them in all shops this week. 

The replacement of the devices was already planned at Aldi Nord, but was brought forward in view of the glitch, a spokesperson told Focus Online. 

“While there is still no functioning update from the manufacturer of the card terminals in sight for the many affected retailers in Germany, Aldi Nord organised its own simple solution for its customers over the weekend,” the spokesperson said. All the affected devices are being replaced by a newer model.

Supermarket Netto Marken-Discount also reacted over the weekend – the company said card payments are now possible again in most of its branches.

Are all DIY stores, drugstores, discounters and supermarkets affected?

No. Individual cash registers in shops can be affected, as well as entire branches of the likes of Edeka, Rossmann, V-Markt, Netto, Aldi Nord, Globus and Kaufland shops.

Retailers often use several card readers in one store. At Netto, for example, card payments at the self-service checkouts have been working without restrictions.

Some clothes shops experienced problems over the weekend. There have also been issues at restaurants, cafes, hairdressers, nail salons, boutiques and petrol stations.

A sign saying 'cash only' at a branch of the store Zara in Berlin.

A sign saying ‘cash only’ at a branch of the store Zara in Berlin on Saturday May 28th. Photo: Rachel Loxton

However, many businesses are not affected by the outage because they don’t use the affected model. These include Aldi Süd, Lidl, Rewe and Penny.

READ ALSO: How Germany’s EC card is set to go digital

How many places are affected in total?

Verifone’s H5000 reader is one of the three most popular and widely used models in German retail. But there are no concrete figures on how many places are affected. It is estimated that thousands of shops are affected by the outage.

Will the problem be solved quickly?

It’s already been dragging on since last Tuesday, making paying for goods in Germany more difficult. And it looks like it could be some days yet until the problem is fixed entirely across Germany. 

At the weekend, Frankfort-based service provider Payone, which uses Verifone, said it had prepared for the update.

“Nevertheless, we assume that this process cannot be carried out ad hoc in the area, but will probably take a few days,” a Payone spokeswoman said.

Verifone emphasised that the problem “is not related to the expiry of a certificate or a security breach, and does not represent a security threat”. They said it was a software fault.

What do I need to know now before shopping?

Customers are being urged to take cash with them when shopping because ATMs are not affected by the outage.

As a general rule, however, ATMs in Germany are busier due to the malfunctioning card readers. They are likely to get even busier in the next few days because employers tend to pay out wages around the end of the month. 

How hard is it to pay with card in Germany?

The technical glitch adds another facet to Germany’s reputation as being a country where it is difficult to pay with card at the best of times.

Unlike many other western countries, Germans still hold a lot of fondness for cash, and many business only accept cash payments.

However, cashless payments have received a boost in Germany due to the pandemic. The share of sales accounted for by card payments in retail rose from 50.5 percent in 2019 to 58.8 percent last year, a study by the Cologne-based retail research institute EHI found.

Contactless payments, where cards or smartphones are held in front of the terminal, have also become much more common due to the pandemic.

The outage does, however, raise questions about how often businesses in Germany update their card readers, and it will be something they will have to consider more in future. 

Member comments

  1. It is actually worse for me. After my card being unreadable, it was unreadable or blocked everywhere else also. My bank took it back and I’ll get a new one in 10 to 14 days. I twice tried contactless, then tried in the reader, as I hadn’t heard of the problem at that point, nor had Netto apparently.

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For members

GERMAN CITIZENSHIP

How much do you need to earn to qualify for citizenship in Germany?

Applicants for German citizenship need to be able to support themselves financially, but it's often unclear what that means in practice. Here's how to work out if your income is high enough for citizenship.

Published: 15 May 2024 15:29 CEST
How much do you need to earn to qualify for citizenship in Germany?

Out of the requirements for qualifying for a German passport, supporting yourself financially is one of the most important – and one of the most confusing.

Many foreigners assume that the authorities have a magic number in mind and will often worry about whether their income is above or below this threshold.

In reality, though, the law is much more flexible. In section 10 of the nationality law, it states that applicants must show that they “can support themselves and their dependent family members without claiming benefits under the Second or Twelfth Book of the Social Code.”

In other words, that your income is healthy enough to not rely on the state for things like long-term unemployment benefits.

According to Fabian Graske, an immigration lawyer at Migrando, around €1,500 gross per month for a single person is usually considered enough to live on. 

That said, there isn’t really a one-size-fits-all approach to this quesiton. 

When it comes to working out if your income is high enough, you’ll need to take into account a number of factors that your case worker at the naturalisation office will also weigh up. 

That’s why it’s important to ask yourself a number of questions that go beyond just how much you earn: 

How high are your living costs? 

In Germany, there are huge regional differences in the cost of living, so what someone can afford to live on varies hugely from place to place.

For example, someone living in pricey Munich is likely to need much more money for rent or their mortgage than a resident of much more affordable places like Halle or Leipzig, so you should consider whether what you earn is enough to offer a basic standard of living in the city or town you live in. 

READ ALSO: Requirements, costs and permits – 6 essential articles for German citizenship

It is worth mentioning, though, that what you actually pay for rent and bills matters more than the averages. If you’re lucky enough to find an apartment with unusually low rent in Berlin, for instance, you can probably get away with earning less money as well. 

Are you single or do you have a family?

If you’re single and have no children, you’ll likely get a lot more lenience from the authorities when it comes to having a lower-than-average income.

A family sit at a lake.

A family sit at a lake in Bavaria. Image by Eva Mospanova from Pixabay

Of course, if you have dependents such as kids or a spouse who doesn’t work (or both), you’ll need to ensure not only that your own living costs are taken care of, but also that your family can survive on your income alone.

That naturally means you’ll be expected to earn a certain amount more for each dependent child or adult.

On the plus side, any income your spouse does earn will be counted alongside your own, so if you’re the one who is supported by their partner, the authorities will also take this into account. 

Is your job stable or unstable?

One key thing to think about when applying for citizenship is the security of your work contract. Someone who has a long-term contract with an employer and has passed their probationary period will be in a much better position than someone who is still on a three-month trial, for example.

This doesn’t mean you shouldn’t submit a citizenship application after just starting a new job, but be aware that the authorities may well wait to process your application until you’ve passed the initial probation and have been put onto a longer-term contract. 

A similar rule of thumb applies to people who are currently claiming Arbeitslosengeld I (ALG I), or unemployment insurance. Though this doesn’t disqualify you from citizenship, it may delay your application until you can find a stable job. 

READ ALSO: Can I still get German citizenship after claiming benefits?

Do you need to rely on welfare payments to get by?

A key aspect of German naturalisation law is working out whether you’re likely to be a financial burden on the state by relying too much on the welfare system.

The entrance to the Jobcenter in Düsseldorf,

The entrance to the Jobcenter in Düsseldorf, North Rhine-Westphalia. Photo: picture alliance/dpa | Oliver Berg

While everyone needs a helping hand from time to time, claiming benefits like long-term unemployment benefit (Bürgergeld) or housing benefit (Wohngeld) to top up your income sadly shuts you out of the naturalisation process and could also make it hard for you to qualify in the future. 

Luckily, this doesn’t apply to all types of state support – Kindergeld, ALG I and Bafög don’t count, for example – so seek advice from a lawyer or your local citizenship office if you’re unsure.

How old are you?

Though this is hard to fully quantify, age can sometimes play a role in assessments of your financial fitness in Germany.

A young person fresh out of university or vocational college may be seen as someone with high earning potential over the years, so in some cases the authorities may take a more relaxed approach to their current income.

In contrast, an older person coming to the end of their working life could be held to slightly stricter standards. 

This is also why it can be important to show that you have sufficient pension contributions or another form of security for the future, such as owning your own home or having lots of savings. 

READ ALSO: How can over 60s get German citizenship under the new nationality law?

What counts as ‘income’ under German law?

It’s important to note that income doesn’t just have to mean the salary you get at your job: income from rental properties, side hustles and freelance gigs can also be included, as well as things like alimony payments after divorce.

Once again, if you’re unsure, just ask. The citizenship offices are there to advise you and should give you clear instructions about what kind of documents count as proof of income in your application. 

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