Woolworths urged to think again on Scheme Debit
29 April 2010
Woolworths should reverse its clumsy intervention into the payments system to prevent any further inconvenience and confusion for scheme debit users.
"Woolworths announced on April Fool's Day that it would force all Visa Debit and MasterCard Debit cardholders to use the EFTPOS system when shopping at Woolworths group stores, such as its supermarkets, BIG W, Dan Murphy's and Dick Smith," says Abacus CEO Louise Petschler.
"As the customer backlash builds, Woolworths is responding to complaints from customers with a standard message that entirely omits the fact that Woolworths earns sizeable revenues by forcing them to use the EFTPOS system.
"Woolworths is not being open with its customers about its true motive for removing customer choice at the checkout.
"By removing the right of scheme debit cardholders to press the 'credit' button at the checkout, Woolworths is exposing customers to a range of negative outcomes.
"Some scheme debit cards do not work through the EFTPOS system.
"Some scheme debit cards are linked to different accounts depending on which button is pressed - 'cheque', 'savings' or 'credit'. Woolworths' action potentially blocks access to accounts linked to the 'credit' button.
"The EFTPOS system has daily transaction limits imposed by card issuers for risk-management reasons. Cardholders forced to use the EFTPOS system may be unable to make purchases in Woolworths' group stores that would be approved if they were able to access the scheme debit system.
"Scheme debit cardholders long accustomed to authorising transactions by signature are being ordered by Woolworths to obtain and remember a PIN.
"If Woolworths is successful in increasing its revenue by increasing costs for scheme debit card issuers, scheme debit cardholders may face higher transaction fees or higher account keeping fees.
"Woolworths should put its customers first and stop dictating to them about how they pay at the checkout," Petschler said.
For more information, please contact:
Pamela Eldridge
Senior Adviser - Media, Public Affairs
(02) 8299 9024; 0423 843 790;
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