Retail giant Woolworths has recently announced changes to the way VISA Debit Cards will operate in their group of stores. From 15th April, customers using VISA Debit Cards to pay for goods at Woolworths' checkout machines will no longer be able to use the Credit (Cr) option.

The VISA Debit Card can still be used at Woolworths’ stores by using the Savings (Sav) or Cheque (Chq) options on the checkout machines. This change ultimately means the VISA Debit Card will work over the EFTPOS network rather than through the VISA one at Woolworths’ stores. The fee structure for EFTPOS transactions and Credit(VISA) transactions are different. We recommended that you check the fees and charges structure associated with EFTPOS transactions.

Please note: There is no problem with your VISA Debit card. It is still fully functional. At stores other than those owned by Woolworths your VISA Debit Card will work as normal when you press ‘Cr’, ‘Chq’ or ‘Sav’. That is to say, that you can still access the VISA network in most stores when using your VISA Debit Card.

The stores that are part of the Woolworths family that will be implementing this change include BIG W, Woolworths Supermarkets, Safeway Supermarkets, Woolworths Liquor, Safeway Liquor, BWS, Dan Murphy's, Dick Smith, Tandy, Woolworths Petrol, Safeway Petrol, Caltex Woolworths petrol outlets, Thomas Dux and ALH.

The following are answers to some questions you may have:

Why can't I press the credit button with my Visa Debit card at Woolworths?

Woolworths has made this decision.

Woolworths is forcing you to use the EFTPOS network, by pressing 'cheque' or 'savings', rather than the Visa network because every time you use the EFTPOS network Woolworths is paid a few cents on top of your shopping bill.

When you use the Visa network by pressing the credit button, Woolworths has to pay a few cents. That's why they have taken this action.
Woolworths cares more about those few cents than your right to choose how you pay at the checkout.
Woolworths' decision affects millions of Visa Debit and MasterCard Debit cardholders across Australia.

Can I press the credit button with my Visa Debit card at other shops?

Yes.

To date, as far as we are aware, it is only the Woolworths group that has taken this action.
The Woolworths group includes Big W, Woolworths Supermarkets, Safeway Supermarkets, Woolworths Liquor, Safeway Liquor, BWS, Dan Murphy's, Dick Smith, Tandy, Woolworths Petrol, Safeway Petrol, Caltex Woolworths petrol outlets, Thomas Dux and ALH bottleshops.

How can Woolworths get away with doing this?

The Reserve Bank regulates the payments system and the Reserve Bank has changed the rules to give big retailers like Woolworths more power over Visa and MasterCard and more power to decide how customers pay at the checkout.

Woolworths is taking advantage of these rule changes to try to collect a few more cents each time a customer pays at the checkout.