The German Bundesbank published a study on the costs of payment instruments in the retail sector, finding that cash and the domestic girocard scheme are the cheapest options for merchants once both monetary and non-monetary costs are taken into account. On a per-transaction basis, cash payments cost retailers an average of EUR 0.43, while girocard is the least costly when measured against revenue at just under 1% of turnover. International debit and credit cards such as Mastercard and Visa are more expensive under both metrics, largely due to higher fees. The analysis also shows that smaller merchants face higher costs than larger ones, with the greatest cost gap occurring in cashless payments, reflecting weaker bargaining power and less ability to spread fixed costs. Cash is accepted almost universally, while girocard and international debit cards are increasingly accepted mainly by larger retailers; smaller retailers more often do not offer digital payments because transaction fees and investment costs remain a barrier. The study is based on time measurements of around 13,000 transactions at 15 points of sale and a survey of 268 retail businesses conducted between August and December 2023.
German Bundesbank 2025-11-28
German Bundesbank study finds cash and girocard are the lowest-cost retail payment methods with cash averaging EUR 0.43 per transaction
The German Bundesbank's study shows cash and the domestic girocard scheme are the most cost-effective for retailers, with cash costing EUR 0.43 per transaction and girocard under 1% of turnover. International debit and credit cards incur higher costs, particularly impacting smaller merchants. The study, based on 13,000 transactions and a survey of 268 retailers, highlights that smaller retailers often avoid digital payments due to transaction fees and investment costs.