Check your bank statements! You could have extra charges due to changes made at Coles, Kmart and other big retailers.

Shops in the Wesfarmers group, including Coles, Kmart, Officeworks and Target, have recently swapped from Visa to Eftpos for their Tap and Go payments.

This may be a cost-cutting measure for the stores, but it’s been a costly change for some shoppers, who have been stung with additional processing fees.

Hidden Fees

Visa machines are generally free from processing fees, while some banks put a cap on Eftpos transactions, and after that limit is reached, extra charges will then apply.

One shopper told Yahoo News Australia that she had been smacked with $18 worth of transaction fees after a month of her normal shopping at Coles.

She explained that she has unlimited credit transactions, which was how Coles processed payments when using the Via system.

But Coles no longer wanted to pay transaction fees to Visa, so they’ve switched to Eftpos, which then inadvertently slugged consumers with unbudgeted extra charges.

Only Impacts A Few

“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,” Eftpos Head of Corporate Affairs and Communications, Warwick Ponder told Yahoo News Australia

Mr Ponder said that “Eftpos strongly believes that customers should not be impacted, as the funds come out of the same account.”

He continued saying that most cards are dual network cards and it is the merchant’s choice to route transactions to either Eftpos or the other schemes to manage costs.

Mr Ponder urged shoppers who noticed these fees to contact their bank or use a different card. He said that most “financial institutions changed this practice a long time ago.”

How To Avoid Tap And Go Fees

There’s a very easy way to avoid these additional fees, even if your bank does still charge for them. All you need to is insert your card into the Eftpos machine and choose the “credit” option. That way, you will force the transaction to go through the Visa network instead of Eftpos.

Do you even check your bank statements at all? Tell us in the comments below.

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  • Very easy to get caught out, especially as a new change. Hard to keep to keep track with each retailer’s position. At least you have an option to choose credit.


  • I always check my receipts so I would know if I had been charged


  • Now everyone uses pay pass businesses pay higher fees for this


  • I’d better check as I use tap and go slot now due to pandemic


  • I always check too, I don’t have spare money to waste and hate tap and go with passion


  • I always check my statements , easy way to pay so everywhere doing tap and go.


  • This is interesting. Good to know.


  • I always check my statements and appear not to have been stung. I love this article now because I’m aware and can keep across it.


  • I always check my statements


  • I’ve never heard of anything like this before


  • I always check my statements and so far haven’t had these fees, but I do use Mastercard.


  • Will have to check my statements more closely, I certainly tap and go with most purchases nowadays.


  • I always check dockets however I had never heard of this. I like that if you push credit it forces it through the Visa network.


  • I definitely check my dockets on my way out as I am often charged too much for something that I might have picked up because it was on sale.


  • That’s very dodgy. I see a law suit on their hands


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