With the discontinuation of the Giropay procedure on December 31, 2024, merchants are faced with the challenge of adapting their payment processes. We answer the most important questions and offer practical solutions.
Why is Giropay being discontinued?
Many users had registered with the payment service, but only very few actually used it. After carrying forward losses of almost eight million euros in 2023, Paydirekt GmbH, which only took over the payment service in 2020, is pulling the ripcord. The payment service pursued many good approaches, especially in terms of user data protection. However, it was never able to assert itself against the American competition.
How long can merchants still use Giropay?
Merchants can continue to offer Giropay for online transactions until 31.12.2024. After this date, no new payments can be processed via Giropay. However, it is important to note that refunds and access to transaction data will remain possible via the merchant portal until 28.02.2025. After this date, direct access to Giropay functions will no longer be available.
How do I deal with refunds?
Merchants can continue to process refunds via Giropay until 31.01.2025. There will be no costs for processing refunds in the period from 01.01. - 31.01.2025, even if this deviates from the previous contractual conditions. From 01.02.2025, merchants will have to fall back on alternatives.
Retailers should inform their customers at an early stage to avoid misunderstandings or delays.
What adjustments are necessary for retailers?
- Logo: Make sure to remove the Giropay logo from the list of your payment methods by 31.12.2024 at the latest.
- Payment method: Deactivate Giropay as a payment method and ensure that you continue to offer your customers a common and free payment method: Paydirekt is the logical continuation of the previous system here, as it is also supported by German banks and relies on familiar bank transfer processes. You can also consider services such as credit card payments, PayPal or Sofortüberweisung.
- Standing orders: Inform your customers who have set up Giropay in a standing order so that they can switch to an alternative payment method by 31.12.2024 at the latest.
- Transactions: Complete all open transactions processed via Giropay by 31.12.2024. If this is not possible, agree an alternative payment method with your customers for completing the purchases made.
Conclusion: adapt payment processes now
The imminent discontinuation of Giropay requires payment processes to be adapted quickly. Merchants should switch their technical systems and customer communication to alternative payment methods in good time to ensure smooth payment processing. Merchants looking for an attractive alternative should consider the new European payment service "Wero". The payment service is European, secure, data protection-compliant and can also be used in online retail from mid-2025. However, it remains to be seen whether it will be able to assert itself against the American competition.
