Shop operators and dealers do not have it easy. The legal requirements are almost unmanageable. This applies in particular to consumer law, which prescribes extensive regulations. Consumer law was further developed by a ruling of the Hamburg Regional Court to the effect that online shops must offer their customers free means of payment.
When two people fight...
In November 2016, the Hamburg Regional Court had to settle a legal dispute between two online shop operators. A travel agent with an affiliated online shop offered its customers the payment methods "Visa Entropay" and "Viabuy Prepaid MasterCard". The travel agent offered its customers both payment methods free of charge. As soon as consumers selected alternative payment methods such as Visa credit card or instant bank transfer, they had to pay a fee. The amount of this fee varied depending on the chosen means of payment and ranged from 76 cents to 23 euros. The travel agent's competitor considered the pricing to be illegal and issued a warning. An out-of-court settlement failed.
"Visa Entropay" and "Viabuy Prepaid MasterCard" are unusual payment methods
The Regional Court of Hamburg ruled in favour of the competitor who issued the warning. Customers of online shops have a general right to free payment methods. Unusual payment methods such as "Visa Entropay" and "Viaboy Prepaid MasterCard" may not be offered as the only payment methods. Merchants are allowed to charge their customers for certain payment methods. However, this is only possible if free payment methods are also offered. These must be "common" and "reasonable". Those who offer typical payment methods such as PayPal benefit from a high Legal certainty. The use of the means of payment is simple and common.
Legally compliant design of online shops
In the legal dispute before the Hamburg Regional Court, a "common" and free method of payment was missing. The court was of the opinion that the means of payment used were not common in Germany. The decision came as no surprise - in 2015 the court already ruled that "Visa Entropay" is not a common means of payment. Merchants should make sure that their chosen means of payment is common. In recent months, there have been repeated disputes over whether the means of immediate bank transfer is "common" and "reasonable". The Frankfurt Regional Court ruled in June 2015 that this was not the case. In August 2016, the Frankfurt Higher Regional Court overturned the ruling and ruled that the payment method "immediate bank transfer" is a common means of payment. Online shops are even allowed to offer immediate bank transfer as the only free means of payment. The financial service provider PayPal is so widespread that it may also be offered as the only free means of payment.
What is recommended?
Online shops should offer as many means of payment as possible. Among them should be a free means of payment. Some customers attach great importance to certain means of payment. A wide choice of payment means leads to a larger customer base - and thus to increased sales and profits. The background is that some service providers like PayPal offer free buyer protection. If the online shop does not deliver the goods, PayPal refunds the transferred amount immediately. Clever online shops should take a close look at the payment conditions of the respective providers. The transaction fee varies greatly. Comparing the individual conditions and choosing the free payment method can lead to a more favourable payment behaviour of customers. This has an effect on the profits of the online shop concerned. Seemingly small differences in transaction costs can add up to immense amounts of money - depending on the shop size.
What are the best means of payment?
The most popular payment method in Germany is payment via invoice. The customer first receives the goods and can inspect them. Payment is made after the goods have been inspected. The advantage for the customer is that he can withdraw from the purchase contract within the cancellation period. Up to this point, he has not yet paid anything. However, credit card, PayPal and direct debit are becoming increasingly important. Prepayment and cash on delivery also play a role that should not be neglected. The mentioned means of payment are - except for PayPal - classic payment methods. In addition, there are other variants. Alternative means of payment are Giropay, Amazon Payments and instant bank transfer. Smaller providers are Skrill and Paysafecard. If you are looking for a means of payment that is "common" and "reasonable", you should focus on the above mentioned payment methods. The acceptance of online payment methods has improved immensely in recent years. Which payment method is the "best" is difficult to answer. It all depends on the taste of the customer. If you are looking for a combination of uncomplicated, simple and fast, you will prefer payment via credit card and PayPal. In the future, payment by smartphone will gain in importance. As far as Security must be expected with online payment methods with small deductions. Payment by invoice or direct debit is still the safest. If you equip your online shop with different payment methods, you should at least offer one classic and one modern payment method. For example, purchasing via PayPal and direct debit. This combination will meet the needs of younger and older customers.
