German Restaurant Sparks Controversy With €25+ Debit-Only Policy
A restaurant in Geestemünde, Germany, has sparked controversy by only accepting debit card payments for transactions over €25, claiming it helps avoid accountant fees. The move comes as debit card fees are lower than credit card fees, but still poses challenges for businesses with low profit margins.
The 'Persia' restaurant, located on Georgstraße, has implemented this policy to manage fees. In Germany, card fees can range from 0.2 to 2.5 percent, with additional charges for digital payment devices. For businesses like restaurants, which often operate on low net profit margins, these fees can be significant.
The restaurant's sign suggests that cash payments help avoid these fees. However, this has raised questions about potential tax evasion, as around half of all transactions in Germany are still made in cash. Reddit users have debated whether the restaurant is committing tax evasion or if the policy is a legitimate way to manage fees.
Fintech solutions are available that charge a fixed monthly fee, allowing restaurants to accept unlimited small card payments. However, some businesses may still find that the fees make accepting card payments for small transactions not worth it.
The 'Persia' restaurant's policy of only accepting debit card payments for transactions over €25 has sparked debate about fees, tax evasion, and the practicality of card payments for small businesses. While debit card fees are lower than credit card fees, the restaurant's approach highlights the challenges businesses face in managing payment fees.
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