The fact that customers can withdraw cash at the checkout is now a must-have service for retailers.
The demand for this service continues to grow, sometimes even too quickly – the first dealers are reluctant to advertise the service.
Some merchants even offer banking services independently of a purchase and are subject to supervision by the banking supervisory authority.
–In addition to butter, milk, drinks and snacks, many Germans leave the supermarkets and drugstores with more cash in their pockets. At many retailers, customers can withdraw an amount from their account directly at the checkout when they pay for their purchase with a card. This service is called cashback.
Over time, more and more dealers have offered the service – for a reason. “The service concept is the only reason why retailers offer cash withdrawals at the till,” explains Ulrich Binnebößel from the German Retail Association (HDE) in an interview with Business Insider. “In the meantime, this offer has already developed into a must-have, at least in the grocery trade,” he adds.
Sometimes it is also said that retailers offer this service in order to reduce cash holdings and thus save costs. But HDE man Binnebößel contradicts: “The trade does not save any costs – on the contrary. The fee for a card payment depends on the amount and is covered by the retailer. ”
According to Binnebößel, this fee is 0.2 to 0.25 percent. So if customers withdraw 100 euros, it costs the supermarket 20 to 25 cents. “The cash-in-transit service provider (editor’s note: money carrier), who comes every evening anyway, doesn’t care how much money he takes with him – the costs are always the same,” he explains.
Withdraw money: trading pays fees
So the current system costs companies money, but customer loyalty seems to be worth it. Trapping this offer again would be difficult, after all, it is becoming increasingly popular with customers. According to a survey by Postbank last year 27 percent of German citizens currently use such offers – around one in four buyers therefore withdraws money during the payment process.
It is therefore no wonder that the minimum amount for using the service continues to fall. At the beginning you often had to shop for at least 20 euros in order to be able to withdraw money at the cash register. Today it is sometimes even possible to do without shopping in the Rossmann drugstore. At dm it is enough to buy any product. Aldi Nord and Kaufland, on the other hand, do not yet offer the service.
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–Ulrich Binnebößel also confirms that the demand continues to rise, even if the HDE has not conducted any current surveys or studies. However, demand depends on various factors – for example, the distance to the nearest ATM.
Withdrawing money at the cash register: increasing popularity also causes problems
Basically, retailers achieve their goal with this and offer their customers an additional service. On the other hand, the increasing popularity is causing uncertainty among retailers, because nobody wants too much growth. “If the retail trade has to supply itself with additional cash in order to be able to meet the demand for withdrawals at the checkout, additional costs arise. This is why some dealers are already holding back from advertising for the service, ”says Ulrich Binnebößel.
Then, in addition to the flexible costs for the payment fees, there would be additional fixed costs for the cash supply. “Under the current conditions, retail cannot compete with ATMs. The banks also have different opinions on the subject, ”reveals the HDE man. While neobanks such as N26, which do not have their own ATMs, support the service, banks with a large ATM network are divided. On the one hand, they could save costs if they have fewer ATMs to operate. On the other hand, this network is often an argument to remain a customer of local savings banks or Volksbanks.
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