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  • #967983
    Chris Bates
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    Heard about Woolworths latest decision regarding the use of Visa Debit cards?

    You can no long use them with Credit, you must select Cheque or Savings. What does this mean?

    Well Woolworths will save millions on credit card processing fees, while the public start paying millions in bank transaction fees.

    What’s your take on it? I for one will be moving my shopping trolley over to Coles.

    #1030121
    King
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    It is my understanding that Woolies will save $96k in credit card fees.

    Seems an odd move, it would have cost tens of thousands to have their firmware upgraded to reject credit as an option on debit cards.

    I expanded my thoughts on this on my blog earlier this week.

    #1030122
    JohnSheppard
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    Personally, I think its a bad marketing move. After all 99% of the population only think about themselves and they currently like credit.

    As for it being a good idea. I think they should just be transparent with costs. If it costs em 1% to process a credit card they should ad it onto the bill, if it costs em 20 seconds extra labour to process cash, they should add that onto the bill…. let the consumer decide….

    As someone who pays cash, I am offended that I have to subsidize those who wish to pay via credit :) So I support the move…I’ll be very pleased to see my grocery bill go down 1% :)

    #1030123
    BB
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    Hey Chris,

    I’ve always used my bank transactional card when shopping – selecting cheque or savings when asked, and I’ve never paid a ‘transaction fee’ when using an eftpos machine in any shop.

    Also, I sometimes withdraw cash at the same time as paying for my purchases, as this also has no transaction fees. It’s a recommended way of using an eftpos machine without the banking fees.

    Might I suggest that you check with your bank regarding the transaction fees that they charge. I’m sure they’ve got a brochure explaining when you get charged and when you don’t. (actually, they’d have given you one when you opened the account)

    Cheers,

    B.B.

    #1030124
    Chris Bates
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    Hey BB,

    I’ve just moved to ANZ, and I’m pretty sure the ‘package’ I’m on means I don’t pay transaction fees.

    Where as my old credit union gave 4 free ones per month then charged some 60c per transaction.

    I just think it’s a pathetic move, that they’re trying to flog off as “passing on the savings” – which is a load of crap. I’ll eat my hat the day I see these changes reflected on my grocery bill.

    #1030125
    jasonm
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    In a previous career I worked with a company that supplied to Woolworths. When they axed the contract over a miniscule amount we lost $1M in turnover and picked up an extra $30K profit the following year.

    Woolworths and Coles are only interested in looking after themselves and trying to dominate the market, they have no concern over how many suppliers they send broke in the process because there is always someone prepared to step up to get screwed down on price and make ridiculous reporting commitments all so you can get sucked in to buying things ‘on special’

    As small businesses shouldn’t we all be trying to support each other, I’m sure we would all appreciate other small businesses using our services rather than the big boys.

    #1030126
    Melinda B
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    I’m curious as to how they will know it’s a debit card. I was told by my bank (Bendigo) that there’s no difference in a Visa debit or credit card and that retailers can’t tell. Wouldn’t that be a breach of confidentiality if they were aware of the type of account it was, past being a visa card and having funds available?

    #1030127
    Melinda B
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    Hmmmm, wondering what would happen if you pressed credit and then ok so you had to sign for it….

    #1030128
    King
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    Melinda_B, post: 36529 wrote:
    I’m curious as to how they will know it’s a debit card. I was told by my bank (Bendigo) that there’s no difference in a Visa debit or credit card and that retailers can’t tell. Wouldn’t that be a breach of confidentiality if they were aware of the type of account it was, past being a visa card and having funds available?

    Evidently there is a ‘firmware’ way of doing this.

    Re the sign, if you have a pin on your debit card…

    Anywone had exposure to the new system yet?

    #1030129
    Melinda B
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    Just emailed my brother in law – bank manager – asking how they know, and here’s his reply (from a Bendigo Bank pov)

    “A Debit card usually has “debit” written on it somewhere, but even if not the numbers themselves will be different. A debit card will usually start with 4506 while a Credit card (at least ours) will start with 4564.”

    So all Woolies have to do is update their software to recognise the diff numbers and we’re done.

    Wonder if Coles is going to follow suit?

    #1030130
    GetYerOwnBin
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    What’s your take on it?

    Typically sneaky.
    But I don’t (and won’t) shop at Woolies or Coles so this decision doesn’t affect me. Only more reason to continue buying my groceries off independents.

    #1030131
    Melinda B
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    Chris Bates, post: 36117 wrote:
    You can no long use them with Credit, you must select Cheque or Savings. What does this mean?
    This apparently came into our local Woolworths a few months ago, but I can still use my debit card as a credit card. According to their staff it won’t let me select credit, but it does…..

    I don’t know if their software isn’t working or what’s going on, but I haven’t been charged any eftpos fees for it so far.

    #1030132
    harrysro
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    I agree with the idea behind the change – but I think they would have been better to charge customers who use it – so they can still offer the choice.

    Interesting article about this scenario – and how it has played out in the US – http://www.theaustralian.com.au/business/news/woolies-squares-off-against-visa-over-debit-card-system/story-e6frg906-1225877209802

    #1030133
    King
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    I cannot use my debit card as a CC format – IGA is my friend now.

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