Customers making tap & go payments could be inundated with unexpected fees even without altering their shopping behavior in any way. The latest trending Aussie credit card news reveals that retailers like Coles, Kmart, Officeworks, and Target made the move from Visa to the network of EFTPOS (Electronic Funds Transfer at Point Of Sale) towards the end of 2019. They claimed that the switch was a means of cutting costs for both consumers and the company.
However, the change shocked customers with sudden transaction fees that they were not expecting on payments that were typically free from processing costs because of the settings on Visa machines. One customer claimed that she had racked up $18 of transaction fees because her particular bank card had a limit on EFTPOS transactions allowed per month. Under their previous Visa system, her credit transactions were unlimited.
A spokesperson informed Yahoo News Australia that they were aware that Coles Group and a few other retailers had decided to change the type of transaction on tap & go payments via payment terminals which could affect customers depending on their banking situation.
They went on to say that they supported their customers in identifying which accounts best suited their banking and transaction needs.
Warwick Ponder, Head of Corporate Affairs and Communications at EFTPOS, alleged that only a small number of people who worked with particular financial institutions were affected by the switch.
Ponder said that the cards were dual networks, meaning that merchants could choose to direct transactions to EFTPOS or elsewhere in order to manage costs. This could provide benefits for the merchant as well as the clientele.
A spokesperson for Coles Group added that more than 20,000 retailers have made the switch, and suggested that a customer inserting their card should select credit to avoid EFTPOS transaction fees.