Debit Card payments at Woolworths

Bendigo Bank debit cardholders may now notice a change when paying for purchases at Woolworths and its affiliated company stores.

On 31 March, the Woolworths Group announced that from Thursday 15 April 2010, the entire Woolworths Group, including its supermarkets, petrol, liquor and department stores, will no longer allow debit cardholders from any financial institution to press ‘credit’ on their eftpos terminals when making purchases.

This decision, taken independently by Woolworths, means customers will be required to select ‘savings’ or ‘cheque’ and use a PIN when shopping at Woolworths Group stores.

These transactions will then be processed through the eftpos network, rather than the Visa or MasterCard networks – attracting a transaction fee for the cardholder.

Credit cards will not be impacted by this change and credit card customers can still select ‘credit’ when using their card.

The change made by Woolworths does not mean there is a problem with Bendigo Bank debit cards. Customers’ cards remain fully functional and cardholders can continue to select ‘credit’, ‘cheque’ or ‘savings’ at all other retailers.

The Woolworths stores affected by the 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
• ALH (Bottle shops)

Below are some frequently asked questions that may help Bendigo Bank customers with any enquiries they have regarding the change.

Your questions answered.

If I press ‘cheque’ or ‘savings’ will my transaction be accepted?

Yes, your card will be accepted if you select ‘cheque’ or ‘savings’ - instead of ‘credit’ - although the fee structure will be different.

For many years Bendigo Bank has encouraged customers to control their transaction fees by pressing the ‘credit’ button for all purchases made using their debit card.

By doing so, the merchant incurs the cost of the transaction rather than you. Because of this, we have never previously counted any ‘credit’ transactions against the number of free monthly transactions you enjoy under our current transaction fee structure.

Unfortunately, Woolworths’ decision to ban debit cardholders from pressing ‘credit’ means your debit card transactions at Woolworths Group stores will now be counted as part of your transactions eligible for rebate.

Standard eftpos transaction using your Bendigo Bank debit card are currently charged at 70 cents each – and can be offset via Bendigo Bank’s transaction fee rebate scheme.

Are customers of all banks impacted by this change?

Yes, anyone with a debit card issued by a bank, credit union or building society is impacted by the Woolworths decision.

How can Woolworths implement this change?

Like all retailers, Woolworths is free to choose which cards it accepts and how they are processed at their eftpos terminals.

When will the Woolworths Group introduce this change in their stores?

Woolworths' decision to prevent debit cardholders from pressing 'credit' will be introduced progressively in their stores from Thursday 15 April, starting with Big W stores.

Can I still use my credit card?

Yes, your credit card is not affected by the Woolworths change.

Why has Woolworths implemented this change?

Woolworths has stated that they have chosen to switch off the ‘credit’ functionality for debit cards in order to minimise their costs.

Are other retailers likely to introduce the same change?

At this stage only Woolworths’ outlets will remove choice at the checkout for debit cardholders.

What happens if I don’t know my PIN?

If you require a replacement PIN, please call us on 1300 BENDIGO or visit your nearest Bendigo Bank branch.