According to a study, in Germany more and more people withdraw cash at the checkout in supermarkets or pharmacies. Aldi Süd, Lidl, Rewe, Kaufland, Edeka, Netto Marken-Discount, HIT, dm and many other retailers offer this service.

The amount of the so-called cashback increased by approximately 20 percent to 12.31 billion euros in 2023, as announced by the Cologne research institute EHI. According to the EHI Institute, grocery stores, pharmacies and hardware stores that offer rebates paid their customers 13.3 percent of the cash they collected.

However, this also has a drawback.

The cash volume of German retail trade fell by two percent last year to 172 billion euros. The proportion of physical money was 35.5 percent. Meanwhile, sales of plastic payments increased by up to 61.8 percent or 300 billion euros. A proportion of 2.1 percent corresponded to invoices and financial purchases, the rest to other means of payment, such as vouchers.

Too little cash in the cash register: what would be the result?

If the proportion of cash in supermarkets and discount stores continues to decline, “in some cases it will be difficult to maintain this service to its full extent,” according to the study's authors. The reason? “More and more people want to withdraw money, but fewer and fewer people want to pay in cash. If this number continues to go down, at some point there will be too little cash in the cash register to be able to pay it again.” Retailers would then have to stock up on cash, which in turn would place a financial burden on retailers.

It would be possible for Aldi Süd, Lidl, Rewe, Kaufland and other cashback retailers to reduce the upper limit. Instead of 200 euros, they pay customers a maximum of 150 euros or even just 100 euros.

Supermarkets have to pay for the service, but for them it is worth it

According to EHI, retailers paid around €17.23 million in refund fees last year alone. Typically, customers can receive up to 200 euros paid at the checkout. The debit is then made together with the purchases made with the bank card.

For supermarkets, discount stores and pharmacies, the cash back process is an important marketing tool to build customer loyalty. If you need cash, it is difficult to find an ATM or bank branch these days. According to sources inside the company, the payment service is especially popular among discount stores and supermarkets in rural areas. Many banks have already closed their branches there and dismantled their ATMs.

But credit institutions are also increasingly withdrawing from city centers. For cost reasons, ATMs are also being dismantled here. Cashback also has positive effects for supermarkets and discount stores. Companies save transportation and insurance costs and convert revenue into digital money much faster.

You need to know these limits

In many cases, customers have to purchase for a certain amount. The following rules apply (as of April 2024):

• aldi South : from a purchase value of 5 euros
• Lidl : from a purchase value of 5 euros
• DM : possible with a purchase
• Edeka : depending on the market between 10 or 20 euros purchase value
• Rosewood : from a purchase value of 20 euros
• Kaufland : from a purchase value of 10 euros
• Market purchase : depending on the market between 10 or 20 euros purchase value
• müller pharmacy : possible with a purchase
• net Brand discount: from €10
• Net market : from 5 euros
• Rule : from a purchase value of 10 euros
• Obi : from a purchase value of 20 euros
• penny : from a purchase value of 10 euros
• Rewe : from a purchase value of 10 euros
• Rossman : possible with a purchase
• Thomas : from a purchase value of 10 euros

Postbank customers (and Cash Group banks) can withdraw up to €1,000 at Shell gas stations. Aral offers ING Diba direct debit customers. If you don't want to do without the classic ATM, you should ask your bank for a debit card. In many cases, these cards can be recognized by the V-Pay or Maestro logo.

At Comdirect, the sister company of Commerzbank, for example, the card is usually free. The advantage: Under certain conditions, private customers can withdraw cash at all ATMs throughout Germany.

Credit cards also typically offer a certain number of free cash withdrawals per month.

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