Woolworths is reducing its cash withdrawal limit from $500 to $200, aligning it with the limits set by other retailers.
Shoppers can currently withdraw cash at the store without having to make a purchase beforehand however this is also being changed.
Starting at the end of October, shoppers will need to make a purchase before they can withdraw cash.
Announcing the changes a Woolworth spokesperson told Daily Mail Australia they would take effect in mid-September
‘We will be reducing the limit of cash customers can withdraw from our stores per transaction,’ a Woolworths spokesperson said.
Woolworths is reducing its cash withdrawal limit from $500 to $200, aligning it with the limits set by other retailers
‘This is due to the lack of cash being used in transactions, with the majority of customers opting for card-only transactions.
‘We understand cash remains an important payment option for some customers.
‘That’s why we’ll continue to offer the ability to withdraw cash.’
To withdraw cash there won’t be any minimum purchase requirements.
So, whether you’re buying a leg of ham or a packet of chewing gum, you’ll still have the option to withdraw any amount of cash from the store.
The move follows a customer backlash over rival supermarket giant Coles opening an outlet where the self-checkout machines do not accept cash.
The store in Brisbane has a row of self-service checkout machines that all say ‘card only’.
Starting at the end of October, shoppers will need to make a purchase before they can withdraw cash.
A video of the cashless machines was posted on social media.
‘There was the help desk. They took cash otherwise no none,’ Scott Russell who took the video told Daily Mail Australia.
Those commenting on the Instagram video were not impressed.
‘Everyone needs to only use cash. If they don’t accept cash, then don’t buy from them,’ one said.
‘Everyone needs to leave the groceries at the check out and walk off,’ another said.
A third noted that the supermarkets are cutting back on jobs.
‘Bad enough that companies like Coles have increased prices, I know they cut hours of their employees but now more self serve check outs… Less jobs.’
A spokesperson for Coles said that there were no cashless stores yet, even if paying by card has become the preferred transaction.
‘There are still options for our customers wanting to pay cash in all our stores,’ the spokesperson said.
In 2021 Woolworths abandoned a trial of cashless supermarkets, which were unpopular with many shoppers.
The trial, which included 14 ‘metro’ stores across Melbourne, Sydney and Brisbane, was sold as a way of making shopping as ‘seamless as possible for busy inner-city customers’.
However, it was met with fierce resistance.
‘I refuse to shop at any of your card-only places,’ one customer wrote on Woolworths’ Facebook page.
‘Cash is legal tender and I do not support the cash ban and will take my money elsewhere.’
National Seniors Australia chief advocate Ian Henschke called the trial ‘a form of ageism’ because many older customers still prefer cash.
Woolworths Metro general manager Justin Nolan admitted the trial was before its time.
‘While almost all Metro customers choose to pay with cards, cash remains incredibly important to those who don’t for a whole range of reasons we didn’t fully appreciate,’ he said.
‘Based on feedback from our customers, we can see we’ve moved ahead of current community expectations on cash and will be ending the trial.’
Australia is rapidly moving towards being a cashless society, forcing people into using bank cards which record all spending.
The Reserve Bank estimated just 13 per cent of transactions in late 2022 were in cash, a halving in just three years since the start of the Covid pandemic.
A major benefit of using just cash means fees are avoided.
When a customer uses tap-and-go banks charge a fee that ranges from 1.1% to 2 per cent of the purchase price, whereas for EFTPOS is a maximum fee of .5% is charged.
Australian bank branches are increasingly limiting cash withdrawals, with customers now advised to call ahead if they want a large sum from a teller.
ANZ, Commonwealth Bank NAB have announced they were no longer permitting cash withdrawals over the counter at some of their outlets as more banking is done online than with cash.
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Read more at DailyMail.co.uk