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Changes to Visa Transactions

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With the implementation of "least cost routing", merchants are changing how Visa transactions are processed, meaning that to avoid fees you may need to make some changes to how you use your card. 

Coles Group and Wesfarmers (excluding Bunnings) have started rolling out changes to their merchant terminals from 1st October 2019 to update the way contactless (Tap & Go, payWave, plus Mobile Wallet) Visa transactions are processed.

These transactions will no longer be processed as Visa Credit Transactions – they will be processed as POS PURCH W/D – what we traditionally have called an EFTPOS Savings transaction. This is the “least cost” way for the merchant to process the transaction but is actually more costly for the credit union.

These transactions will count towards your 10 free EFTPOS transactions that you get each month.

Transactions where you insert the card and select Credit or Visa Debit will continue to be processed as normal Visa Credit transactions and will not affect your 10 free EFTPOS transactions.

To avoid using up your 10 free EFTPOS transactions per month and to prevent incurring additional fees we suggest the following. When at merchants like Coles/Wesfarmers (who use least cost routing) that instead of opting for the Tap & Go option, you insert your Visa card, select Credit or Visa Debit and use your pin.

If you exceed the 10 free EFTPOS transactions you will incur a fee, please refer to our Fees & Charges document for more information.

To read more about Merchant Least Cost Routing please refer to this article from the RBA.

Many small merchants already use this and more are likely to implement least cost routing in the future.

Enquire Call 02 9859 0585