Shop at Coles? You could now be charged when you tap and go

Down down, prices are, wait... up? 

Well, not exactly. 

Last week, supermarket giant Coles announced that it would change the way it processes payments from customers who tap and go using a visa debit card, meaning shoppers could face transaction charges from their bank when they pay for their groceries. 

So how is this happening? Well, when a customer taps their card at a Coles checkout the transaction will automatically be put through as eftpos, instead of Visa/credit, as often it is the more cost-effective way for merchants to process payments.  

Some bank accounts have restrictions on the amount of eftpos transactions cardholders can make, so tapping their card at Coles or another retailer opens them up to being stung with extra charges. 

How do I know if this affects me? 

The good news is that most banks and financial institutions don’t actually charge transaction fees on eftpos, meaning those customers won’t be affected at all by the change made by Coles. 

On the other hand, some smaller credit unions and mutual banks still do.  

According to the latest data in the Mozo database, there are 21 providers that charge an eftpos transaction fee, ranging anywhere from $0.50 to $2.00 per transaction, averaging around $0.85.

Bear in mind that many of these providers have a certain number of free transactions or rebated fees per month, so users won’t be charged for eftpos transactions that fall within the requirements of these benefits.

So you can check if these changes will affect you next time you do the grocery shop, here’s a list of providers that charge per transaction for eftpos: 

  • abal banking
  • Australian Military Bank 
  • Bank First 
  • Central West Credit Union 
  • Community First Credit Union 
  • Delphi Bank 
  • Family First Credit Union 
  • G&C Mutual Bank 
  • GMCU
  • Hume Bank 
  • Hunter United 
  • IMB Bank 
  • Macquarie Credit Union 
  • Newcastle Permanent 
  • Orange Credit Union 
  • P&N Bank 
  • Police Bank 
  • Police Credit Union 
  • QBANK 
  • South West Slopes Credit Union 
  • Summerland Credit Union 

“This issue impacts a very small percentage of consumers who bank with financial institutions that continue to charge per transaction fees on a small number of accounts,” Warwick Ponder, Head of Corporate Affairs and Communications for eftpos told New Idea Food. 

“eftpos strongly believes that customers should not be impacted, as the funds come out of the same account. These cards are dual network cards and merchants can choose to route transactions to either eftpos or the other scheme to manage costs, which can have positive impact for the merchant and all of their customers.”  

Checkout tips - how to avoid the eftpos charge 

If you hold a card that could be hit with extra fees by tapping at Coles, here are some things to consider before you hit the checkout. 

  • Opt to insert over tap: While you may love the ease of tapping your card wherever you go, do things a little old school when you do your shop - because really, it’s a matter of a few seconds.  
  • Got another card? Use that: It’s fair to assume that you may have more than one card in your wallet - say a Mastercard or credit card - so why not use that instead? 
  • Change card providers: If you’re worried about your current provider and wherever or not you’ve been charged for eftpos transactions elsewhere, you could always make the switch to a different card - there are plenty of options that don’t have an eftpos fee.   

Want to weigh up your debit card against the rest? Check out the table below or jump over to our debit card comparison tool.

Debit Cards 2020 - rates updated daily

Search promoted debit cards below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Go Account

    account fee
    Payment Options
    what kind of card
    $0.00
    Apple Pay, Google Pay, Samsung Pay
    Visa Debit

    Enjoy earning Virgin Money points on purchases (conditions apply). Bundled with the Virgin Money Boost Saver. No Account fees. Available as a joint account.

    Go to site
    Details
  • placeholder
    Glide Account

    account fee
    Payment Options
    what kind of card
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin
    Visa Debit

    Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees or ATM fees.

    Go to site
    Details
  • placeholder
    Everyday Options

    account fee
    Payment Options
    what kind of card
    $0.00
    Apple Pay, Google Pay, PayID
    Visa Debit

    An easy, everyday banking account packed with flexible options to help you spend, budget and save better. Create up to 9 sub accounts.

    Go to site
    Details
  • placeholder
    Global Currency Account

    account fee
    Payment Options
    what kind of card
    $0.00
    PayID, Samsung Pay
    Debit Mastercard

    Send and receive foreign currency with no Citi transfer fees. Consolidate your international bank accounts with account details for up to 10 currencies. Winner of Mozo Experts Choice Exceptional Everyday Account 2020 award^.

    Go to site
    Details
  • placeholder
    Everyday Snap Account

    account fee
    Payment Options
    what kind of card
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay
    Visa Debit or
    EFTPOS

    Enjoy $0 monthly account fees and unlimited fee-free card, phone and online transactions. Tap and pay with Google Pay, Apple Pay or Samsung Pay. Refund of overdrawn fees and international ATM withdrawal fees and international card transaction fees^.

    Go to site
    Details
  • placeholder
    Everyday Global Account

    account fee
    Payment Options
    what kind of card
    $0.00
    Apple Pay, Google Pay, PayID
    Visa Debit

    No overseas ATM fees & up to 10 currencies in one account. Switch between currencies instantly 24/7 wherever you are using the mobile app.$100 Bonus for new HSBC customers and earn 2% cashback on tap and pay under $100 (T&Cs apply). Mozo's Experts Choice 2021 winner for Exceptional Everyday Account.

    Go to site
    Details

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