How To Avoid Bank Fees When Doing Your Shopping At The Supermarket

Information verified correct on September 30th, 2016
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Things you can do to avoid bank fees when doing your grocery shopping

Since 2009 Australian banks are required to display any ATM fees applicable to the transaction, according to a new regulation. This is also when many consumers became aware of the ATM fees that they were being charged on a regular basis. Most Australians have moved their transactions to supermarkets instead of ATMs in response, as supermarket bank fees are much more favourable.

Decline in ATM usage

Ever since the new regulation forced banks to display transaction fees on the ATM screen, consumers have become aware of and started avoiding ‘foreign ATM’ fees. This term refers to any ATM not owned by your bank. When you withdraw money from such an ATM you are charged an ATM transaction fee varying from $2 to $2.5 per transaction.

Understandably the number of foreign ATM transactions has decreased by 18% since the year the new regulation came into effect. The total transaction volume has decreased by six million, with more and more Australians looking to supermarkets as the source of cash.

Supermarkets in the role of banks

Large retailers such as Coles, Kmart, and Woolworths seem to have replaced the role of ATMs in the minds of the Australian consumer. In most of these retail stores, customers can withdraw cash from their EFTPOS machines, either staffed or self-checkout ones, even if no purchase is made. The lack of any supermarket bank fees attracts the attention of these consumers, as evidenced by the rise in cash out transactions through the EFTPOS system, which has been 12% higher than last year (since the new regulations took effect).

Increased ‘cash out’

Cash out withdrawals have increased over the counter across all major retailers, as well as Australia Post outlets. Approximately one in three EFTPOS transactions now involves cash out. Retailers such as Kmart and Woolworths also allow EFTPOS withdrawals of up to $400 without any purchase being made in-store, hoping to convert the consumers into regular patrons of their stores. With no supermarket bank fees in place they may be right in expecting more bank customers.

Therefore the next time you are at your local supermarket remember to take advantage of the zero supermarket bank fees, and avoid any potential ATM transaction fees.

Compare Supermarket Credit Cards

Rates last updated September 30th, 2016.

Coles Low Rate MasterCard

Purchase rate has been updated from 12.99 to 9.99% p.a.

February 10th, 2016

Coles No Annual Fee MasterCard

New offer of 10,000 bonus points which is valid until 30 September 2016.

September 1st, 2016

Coles Platinum No Annual Fee MasterCard

New offer of 10,000 bonus points on sign up. Offer ends 30 September 2016.

September 1st, 2016

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Jonathan Choi Jonathan
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
American Express Platinum Edge Credit Card
Receive 10,000 Membership Rewards Bonus Points when you meet the minimum spend requirement. Enjoy 0% p.a. for 12 months on balance transfers and receive a complimentary Virgin Australia domestic economy return flight every year.
20.74% p.a. 0% p.a. for 12 months with 1% balance transfer fee $195 p.a. Go to site More info
Coles Low Rate MasterCard
A low rate MasterCard with flybuys points on your purchases. Earn flybuys point per $2 spent.
9.99% p.a. 0% p.a. for 6 months $49 p.a. Go to site More info
Coles No Annual Fee MasterCard
Enjoy no annual fee for the life of the card and earn 1 flybuys point for every $2 spent.
19.99% p.a. 0% p.a. for 6 months $0 p.a. Go to site More info
David Jones American Express
The AMEX David Jones Credit Card gives you points for supermarket purchases. Earn 1.000 Points per $1 spent at all the major supermarkets.
20.74% p.a. $99 p.a. Go to site More info
Coles Platinum No Annual Fee MasterCard
Enjoy no annual fee for the life of the card and enjoy platinum card benefits.
19.99% p.a. 0% p.a. for 6 months $0 p.a. Go to site More info
David Jones American Express Platinum Card
Earn 40,000 Membership Rewards points when you spend outside of store 3 times in the first month and up to 3.00 reward points for every dollar you spend at supermarkets.
20.74% p.a. $295 p.a. Go to site More info
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5 Responses to How To Avoid Bank Fees When Doing Your Shopping At The Supermarket

  1. Default Gravatar
    maz | August 19, 2015

    Hi Jonathan,
    Thanks for the speedy response. It’s a Visa card issued by Travelex.

    Regards
    Maz

  2. Default Gravatar
    maz | August 18, 2015

    I am South African and visit my children and grandchildren in Australia. Initially I had a travel card which I could use to withdraw “cash out” at supermarkets, however when my new card was issued, now with a chip, I was unable to withdraw cash from the supermarkets, only at ATM’s. How can I get around this problem. Many thanks

    • Staff
      Jonathan | August 19, 2015

      Hi Maz, thanks for your inquiry!

      The eligibility of using a travel card overseas depends on the card network e.g. AMEX, MasterCard, Visa etc. So I can assist you further could you please state which travel card you are using?

      Cheers,

      Jonathan

  3. Default Gravatar
    | May 7, 2015

    When making purchases (groceries) in germany, Italy, can cash be withdrawn at the same time when paying by travel cash card with Euros on it

    • Staff
      Jonathan | May 7, 2015

      Hi Kim, thanks for your inquiry!

      Cash withdrawal facilities with purchases depend on the retailer’s policies and partnerships with banks/ATM facilities. You may like to refer to the following link for a guide on travel money in Germany.

      Cheers,

      Jonathan

Credit Cards Comparison

Rates last updated September 30th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
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ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
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St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
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