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Why are card payments getting rejected in Germany?

People are currently unable to pay by card in a number of major German retailers. Here's what's going on.

Published: 27 May 2022 11:58 CEST
Card payments terminal
Someone makes a card payment using the Verifone H5000 terminal. Photo: picture alliance/dpa | Karl-Josef Hildenbrand

Since Tuesday, numerous retailers in Germany have been operating under a cash-only policy after a major brand of card payments terminal stopped processing payments.

The problem was initially announced by the Konsum retail chain in Dresden, who wrote on Facebook on Tuesday morning: “Attention, an important notice for you! Due to a Germany-wide malfunction, card payments are currently not possible in our stores.”

According to the latest information from Focus Online, several branches of Netto, Edeka and a handful of Rewe branches are affected by the issues. There have also been reports of problems at Aldi Nord, Rossmann and DM as well as some smaller, independent retailers and petrol stations.

People who have tried to pay by credit card, debit card or EC card at these places have reportedly been turned away. 

What’s going on?

The problems with card payments seem to be linked to a commonly used card payments terminal from US company Verifone. According to reports, H5000 card machines at multiple retailers and businesses experienced a software malfunction that stopped them processing payments. 

“As things stand, it will be necessary to install new software updates on all H5000 terminals, which the manufacturer will provide as soon as possible,” the payment service provider Payone said.

“The disruptions are ongoing,” a spokesperson for financial services provider Concardis said on Thursday afternoon. “We’re still waiting for updates from Verifone.”

As of Friday morning, there was no indication of when the problems would be solved, but the card payments processor appeared to be working on a solution.

“We will soon provide a software update for our customers to fix the problem and will inform our customers as soon as it is available,” a Verifone spokesperson said. 

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

How widespread is the problem? 

According to Verifone, thousands of card machines at different retailers, petrol stations and banks across the country are affected. The H5000 terminal is mainly used in Germany, they added. 

However, the Association of German Banks clarified that, though the H5000 terminals were completely out of action, this specific model only accounts for a small proportion of all card machines in Germany. 

“Network operators and technical service providers are working intensively on troubleshooting,” it continued.

Payments processing service Payone confirmed that it was facing issues with the specific H5000 card machine and said that the issues were happening throughout the country. 

“Like other network operators, we are currently experiencing considerable restrictions in the processing of transactions with card payment terminals of the type H5000 from the manufacturer Verifone throughout Germany,” Payone said on Wednesday. 

Financial service provider Concardis warned businesses not to try and fix the problem themselves by rebooting the devices since the card machines needed to be connected to the network in order for the problem to be solved by the manufacturer. 

He said Payone and Concardis were in contact with Verifone and were working to fix the problem.

What should customers do? 

Since card payments may not be possible, it’s a good idea for people to make sure they have cash on them when they go to the supermarket or petrol station in the near future. 

ATMs are apparently unaffected by the problems, so people should still be able to get access to cash. 

Customers are also being advised to clarify in advance at the checkout whether card payments are possible or not – preferably before picking out items.

If card payments aren’t possible, supermarkets and other shops are likely to put up signs at entrances or near the tills, so customers should keep an eye out for those. Petrol stations generally put stickers and signs directly on the pumps when equipment is out of order. 

If customers get caught out with no cash at a retailer where no card payments can be processed, they will generally have to leave the items behind – though some cashiers will be willing to hold the items for when the customers return. 

Things can get trickier at petrol stations, where identity cards, driving licences and health insurance cards can be retained in the event that somebody fills up their tank and is unable to pay straight away.

In some cases, the police can even be called.

READ ALSO: What to know about starting your personal banking in Germany

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CLIMATE CRISIS

How installing solar panels at home is set to become easier in Germany

As part of its drive to roll out renewable energy, Germany has passed a new law that will make it easier to install solar panels on your balcony. Here's what homeowners and renters need to know.

Published: 30 April 2024 09:22 CEST
How installing solar panels at home is set to become easier in Germany

With rising prices affecting almost every area of life, many people are looking for ways to cut costs wherever they can. 

When it comes to electricity, this could include looking at renewable options like installing solar panels on your balcony.

According to data from the Federal Network Agency’s Market Data Register, this is an increasingly popular choice. As of April 2nd this year, there were around 400,000 balcony solar units in operation in Germany, compared to just 230,000 in the summer of last year.

These little photovoltaic systems can be a great way to become more self-sufficient by producing your own energy for the home – but despite the benefits, you may have been put off by fears of mountains of paperwork and an uncertainty around the rules.

READ ALSO: How to install a solar panel on your balcony in Germany (even if you rent)

The government’s new Solar Energy Package, passed on Friday, aims to solve this issue by making it simpler for people in apartments or single-family homes to install solar panels and use their own energy.

It’s part of a major drive to roll out renewable energy in Germany, pushing up photovoltaic capacity from 7.5 gigawatts in 2022 to 22 gigawatts in 2026 and ultimately 215 gigawatts by 2030. 

But what exactly is changing for homeowners and renters? Here’s what we know so far.

Streamlined registration process

Rather than having to register with your local network operator when installing solar panels on your balcony, in future simply registering with the Federal Network Agency’s Market Data Register will suffice. This streamlined process has been in place since April 1st, 2024. 

Increased capacity allowance

Solar devices installed in the home are allowed to be more powerful in future. If your future device has an installed output of up to 2 kilowatts and an inverter output of up to 800 volt-amperes in total, you can register it quickly in a simple and unbureaucratic registration process.

Previously, devices were only allowed an inverter output of up to 600 volt-amperes. 

No barriers on meters

In a transitional measure designed to encourage more people to switch to solar energy, balcony installations can be run through any type of meter on the market.

Solar panels on a German balcony

Solar panels on a balcony in Germany. The government is making it easier for people to produce – and use – their own solar energy. Photo: picture alliance/dpa/iStock.comMaryanaSerdynska | Maryana Serdynska

This includes meters without a backstop, which run backwards when more energy is produced than is used. These, alongside normal one-way meters with a backdrop, will be permitted for a limited time until modern digital meters can be installed. 

Under previous rules, both older types of meter were prohibited. 

Simpler energy storage

In future, balcony solar systems will be able to store energy with a conventional shockproof plug. This will make installation way easier than it was before.

READ ALSO: German government to subsidise up to €30,000 of heating revamp costs

Easier operation of multi-unit buildings

To enable tenants in apartment blocks to use cheaper solar power from roofs, garages or battery storage systems directly, the new instrument of “communal building supply” is being introduced. This eliminates the complicated requirement to feed energy into the general electricity grid and permits residents to use the energy generated themselves.

In future, tenants will also be able to take out an affordable supplementary tariff themselves for electricity that is not covered by their solar installation. Some rules on this still need to be clarified though, so watch this space. 

Tenant subsidies in commercial buildings

In future, tenant electricity will also be subsidised for commercial buildings and ancillary facilities such as garages if the electricity generated there is consumed immediately, i.e. without being fed through the grid.

This allows several energy systems to be combined and should avoid the overwhelming technical barriers that were previously a problem in residential neighbourhoods. 

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