Germany is known as a society that still values cash – but more recently, the country has been embracing card payments.
However, that system was hit by widespread disruption on Thursday, leading to many retailers switching to cash only.
Payments with giro, credit and debit card have not been possible in many cases due to the technical problems.
The Deutsche Kreditwirtschaft (German Banking Industry Committee) said there could also be restrictions when withdrawing cash from ATMs.
Banking experts said only giro cards can still be used to withdraw cash from ATMs without any problems.
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The disruption is due to problems at IT service providers, said a spokesperson for the German banking industry. “We are currently working with payment system operators and service providers to analyse the facts and the nature and extent of the disruption,” said the spokesperson.
The IT service provider in question is First Data, which belongs to the US group Fiserv, a company spokesperson said on request. There is currently a technical problem with some processing services, the company said.
The German Federal Office for Information Security (BSI) has been informed about the disruption and “in contact with those affected and relevant authorities”.
“We are currently analysing the facts of the case, and the nature and extent of the disruption,” the office said.
The German Retail Association said the problem was clearly bad for business.
“Disruptions to card payments are always problematic for retailers,” said Stefan Genth, managing director of the retail association.
Uncertainty among customers could also lead to them postponing their purchases, he said, adding that retailers pay money to network operators and card providers for the use of cashless payment systems.
“In return, they must also be able to expect the technology to work without problems,” Genth said.
It’s not the first time that Germany has seen problems with card payments.
In May of this year, issues occurred with card payment terminals due to software errors. And about two years ago, technical problems even led to card payments being rejected for several days.
Specialist lawyer David Riechmann from the NRW consumer advice centre said having an emergency stash of cash was a good way to prepare for these events.
He said: “The only advice we can give at the moment is to stock up on sufficient cash, be it at an ATM or by emptying your piggy bank at home, so that you don’t have to worry about cash in everyday life.”
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