Trade fears chaos at the checkout in the event of a power outage – this is how Coop and Migros react

If the power goes out, nothing works, not even at the checkout in the supermarket. Retailers want to avoid such a scenario at all costs and are therefore working hard on contingency plans. In view of the impending power shortage, the focus is on how customers can pay for their goods if electronic payment transactions fail.

What does Coop do?

In order not to cause chaos at the cash registers, Coop now applies a well-known method: customers can have their purchases “written” as before in the village shop and pay their bills later.

“In the event of card payment failures, we recently offered the option to defer payments. By providing their personal details, customers can pay the outstanding amounts at the point of sale within three days,” a spokeswoman said at the request of CH Media. In addition, they are in contact with the federal government and have made proposals to continue fulfilling the supply mandate in the event of a power outage.

And the Migros?

Migros has also set up a national crisis management team and offers “the possibility to pay offline at the payment terminals in the event of malfunctions”, according to a spokesperson. Such offline payments should be possible up to a certain maximum amount.

The principle: The outstanding amount is saved on the terminal, as soon as the power and the grid connection are back, the data is forwarded and invoiced. Which customers can use this solution depends on the respective card provider.

Why now?

Coop in particular is responding to a malfunction that shut down all payment terminals at the retailer two weeks ago with the option of the ‘write-on method’.

The outage showed once again how vulnerable electronic payment traffic is, even in normal business. Widespread card terminal outages hit the industry as early as May, June and August.

With the most recent outage at Coop, customers got a taste of what could happen at the tills in the event of a power outage. It was not the lack of electricity that made card payments impossible, but a technical defect. The effect was the same: unsatisfied customers, abandoned purchases at the self-checkout and millions in losses for the retailer.

In a letter recently sent to its members, the Association for Electronic Payment Transactions (VEZ) before such scenes, the federal government should set electricity quotas or even shut down the grid in an emergency. So-called ‘rolling grid shutdowns’ are said to affect a specific area for four hours each.

The association, which includes key players such as Coop, Migros, SBB and Swiss Post, fears that payments by card or mobile phone would be canceled in whole or in part, even if there were electricity quotas.

What to do in the event of a power failure?

Things look particularly bleak for retailers when there are power outages. The electronic payment system is expected to collapse completely, according to the letter that CH Media has made available.

Under these conditions, the system would be impossible to operate stably: “Even if some parts were still working, it would collapse under the load.”

That means: if the power goes out, even partially, there is a threat of payment chaos throughout Switzerland. With enormous consequences for the companies, which have to deal with sensitive sales declines.

Emergency power supply for the operation of ATMs?

In the short term, consumers can switch to cash. But here too there is a danger of collapse without electricity. Money transactions have long been digitized and dependent on electricity. Because ATMs don’t deliver cash when there’s no electricity. They are also linked to electronic payment transactions. If the electricity crisis lasts longer, customers will run out of money, the VEZ fears.

The association therefore advises its members to equip card terminals with batteries and SIM cards, to inform customers in good time and to check the option of purchasing on account.

When it comes to providing cash, Swiss National Bank (SNB) a central role. It provides the banks with cash. These then take over the fine distribution. A power shortage is possible and poses a challenge for the financial center, explains a spokeswoman for SNB.

To reduce the risks to an “acceptable level”, the main actors have coordinated. “We are in close contact with the federal government and the financial market regulator and are supporting preparations across the financial center.”

It remains unclear what concrete measures are. hardly reveals anymore Zurich Cantonal Bank (ZKB), who prepared several scenarios. It concerns “the use of existing emergency power systems and savings on electricity consumption”.

She does not say whether the bank will also use its emergency power generators to operate ATMs in the event of a power failure – and especially for which locations. This will be communicated in due course. Probably to avoid panic.

What about the federal government?

The Federal Office for National Economic Supply (BWL) is currently working on the regulations governing how quotas and grid shutdowns should be implemented in the event of an emergency.

The question is whether there will be any exceptions for retailers if it just shuts down. According to the BWL, this very last resort would only be used if there was a risk of network collapse. “Exceptions are therefore granted only very restrictively and if technically possible.”

The federal government emphasizes that it is analyzing the security of electronic payment transactions with the industry. “A working group has been formed with representatives from the banking industry to develop recommendations for the banks.”

(aargauerzeitung.ch)