Visa is extremely disappointed in Woolworths’ announcement that it intends to remove choice at the checkout by routing all debit transactions via the EFTPOS network. 
 
Visa Debit has been providing vigorous competition to the incumbent EFTPOS system over a long period of time.  EFTPOS currently enjoys a 75 percent market share of debit card transactions.  In the last few years, Visa Debit has provided consumers with clear choice in the payments sector.
 
It is extremely unfortunate that consumers will no longer have the choice to use their Visa Debit cards at Woolworths.  It puts into question the competitive landscape for the entire payments industry when a major dominant retailer can decide not to accept a payment solution that is strongly supported by the public.
 
We dispute that the acceptance costs of Visa Debit have contributed to cost pressures.  Interchange on Visa Debit has reduced dramatically in recent years.  Woolworths itself also points out that the changes are likely to affect only around 1 percent of its customers.
 
Visa Debit provides clear benefits to consumers that EFTPOS does not, including the ability to purchase online, over the telephone and overseas.  Visa Debit cards also provide enhanced security features, as all Visa Debit cards are being migrated to secure chip technology and cardholders are protected by Zero Liability, which means they are not liable in the event of fraud.
 
Transactions made with a Visa Debit card can be disputed if the goods or services are not delivered or are damaged or defective.  These Visa protections are only provided to transactions that go over the Visa network when consumers press the credit button.
 
We will continue to work closely with Woolworths to encourage them to allow consumers to choose the way they wish to pay.

 
Contact:
Judy Shaw
Visa Corporate Relations
Tel: 0418 415 965
E-mail: judyshaw@visa.com