Qantas FF and Woolworths create new loyalty alliance

[flyinghightoday]

New members to EDR will now get the card mailed out to them and a temporary card issued at the store. Also there will be a keychain EDR card mailed out too from today onwards.

 

[Flashback]

New members to EDR will now get the card mailed out to them and a temporary card issued at the store. Also there will be a keychain EDR card mailed out too from today onwards.

Welcome to AFF and thanks for the info. Do you work for them?

 

[samh004]

New members to EDR will now get the card mailed out to them and a temporary card issued at the store. Also there will be a keychain EDR card mailed out too from today onwards.

I hope they mail out a card and keychain to active old members, after all, we’ve been diligently using the card so we deserve the new benefits

 

[thewinchester]

Well, if they send me a keychain its going straight in the bin.

I'm dumping Woolworths after they've gone ahead and implemented their anti-debit card policy. I'm moving my spend with them (about 4-5k/yr in extra groceries, and toiletries as they do have better prices more often then not) back to Coles.

Yeah, its going to lose me some potential QFF points, but I choose to pay how I want.... although I could make a point by using the cash lanes and forcing them to use human operators just to increase their cost of dealing with me. However, its far less effort to leave work a little earlier and get to a Coles before they close.

 

[medhead]

Well, if they send me a keychain its going straight in the bin.

I'm dumping Woolworths after they've gone ahead and implemented their anti-debit card policy. I'm moving my spend with them (about 4-5k/yr in extra groceries, and toiletries as they do have better prices more often then not) back to Coles.

Good news for my wesfarmers shares!

 

[samh004]

Your loss thewinchester.

 

[markis10]

Seems a pretty strong reaction to being forced to press the savings button!

 

[JohnK]

Your loss thewinchester.

I don't think so. There is nothing wrong with making a stance if you believe something is not right.

Personally I am of the firm belief that a (big) business should accept all forms of payment including all credit cards and debit cards and cash.

How many people here will continue to shop at Woolworths if they no longer accepted Amex cards?

 

[samh004]

How many people here will continue to shop at Woolworths if they no longer accepted Amex cards?

Would probably upset my dad, as he’s always paying with it, but I doubt they’d get rid of a card that’s used so frequently.

I’d think they might try do away with cheque and savings cards and only accept credit, that would upset me, as I can’t apply for any, but then, what real reason do they have to do that.

 

[ejb]

Well, if they send me a keychain its going straight in the bin.

I'm dumping Woolworths after they've gone ahead and implemented their anti-debit card policy. I'm moving my spend with them (about 4-5k/yr in extra groceries, and toiletries as they do have better prices more often then not) back to Coles.

Yeah, its going to lose me some potential QFF points, but I choose to pay how I want.... although I could make a point by using the cash lanes and forcing them to use human operators just to increase their cost of dealing with me. However, its far less effort to leave work a little earlier and get to a Coles before they close.

I was always told not to cut my nose off to spite my face.

Surely the 4-5K points every year are worth the effort of pressing the savings button.

I don't think so. There is nothing wrong with making a stance if you believe something is not right.

Personally I am of the firm belief that a (big) business should accept all forms of payment including all credit cards and debit cards and cash.

How many people here will continue to shop at Woolworths if they no longer accepted Amex cards?

I think Woolies have just reacted to the banks grab for cash by stopping this loophole. Banks only issue debit cards to gain the ~1% transaction fees they generate. Woolies have decided to continue to take the debit card but only when used as a savings card. No big change.

ejb

 

[oz_mark]

I think Woolies have just reacted to the banks grab for cash by stopping this loophole. Banks only issue debit cards to gain the ~1% transaction fees they generate.

The fee structure of credit and debit cards are different, and certainly the interchange fees from Visa or Mastercard are different. Debit cards tend to have a flat rate, and for supermarkets the Visa Interchange Fee is 6.6c per transaction.

 

[medhead]

I’d think they might try do away with cheque and savings cards and only accept credit, that would upset me, as I can’t apply for any, but then, what real reason do they have to do that.

not going to happen. I certain this is part of the move by EFTPOS to expand the use of it's payment processing network vs the visa system. I'm also pretty certain that eftpos is part owned by the retailers like woolworths. So if they get serious they are more likely to cut off visa.

I'd refer to my post where I already mention this if i could be bothered.

 

[markis10]

not going to happen. I certain this is part of the move by EFTPOS to expand the use of it's payment processing network vs the visa system. I'm also pretty certain that eftpos is part owned by the retailers like woolworths. So if they get serious they are more likely to cut off visa.

I'd refer to my post where I already mention this if i could be bothered.

Its owned by the Banks and Westfarmers, Wooolies dont get a look in:

The company has eight founding members: Australia and New Zealand Banking Group Limited, Bank of Western Australia Limited, Coles Group Limited, Commonwealth Bank of Australia, First Data International, National Australia Bank Limited, St George Bank Limited and Westpac Banking Corporation.

 

[medhead]

Its owned by the Banks and Westfarmers, Wooolies dont get a look in:

The company has eight founding members: Australia and New Zealand Banking Group Limited, Bank of Western Australia Limited, Coles Group Limited, Commonwealth Bank of Australia, First Data International, National Australia Bank Limited, St George Bank Limited and Westpac Banking Corporation.

thanks for the info. my mistake

But still it is known that eftpos is jockeying for position with visa. Since the debit card is process via the visa system, and this move will enhance eftpos transactions, I stand by my position that this is related to the push by eftpos. Hence they are more likely (all be it extremely unlikely) to cut off visa payments, before cutting off eftpos based payments.

 

[markis10]

The eftpos mob cannot compete with VISA or MC for that matter, but thats got nothing to do with Woolies, its a pure cost of doing business issue, why pay 1.5% of your margin to a company when using the same card can cost you 6c as a vendor, all you have to do is educate the consumer to press SAV or CHQ rather than the Credit button.

The average margin of a supermarket transaction is 6%, if it was an issue of Eftpos trying to beat the Visa/Mastercard cartel was valid and Woolworths was supporting the EFT side, then they would do the same thing across all their outlets, such as BWS, Tandy etc, which all have an average gross margin of 15% +.

Woolworths have banned the use of Visa/Mastercard Gift cards for years, this is just an expansion of that to reduce transaction costs and increase gross margin.

 

[drron]

Just checking our accounts.Mrsdrron's supermarket and BWS points seem now to be transferred on the 3rd of the month as was her 700 point bonus.Big W and Tandy come across almost immediately.

 

[flyinghightoday]

I hope they mail out a card and keychain to active old members, after all, we’ve been diligently using the card so we deserve the new benefits

Would be good that if older active members get sent out the keychain card.

Just a side note, has anyone had a delay in their points posting to their QFF account?

 

[medhead]

The eftpos mob cannot compete with VISA or MC for that matter, but thats got nothing to do with Woolies, its a pure cost of doing business issue, why pay 1.5% of your margin to a company when using the same card can cost you 6c as a vendor, all you have to do is educate the consumer to press SAV or CHQ rather than the Credit button.

The average margin of a supermarket transaction is 6%, if it was an issue of Eftpos trying to beat the Visa/Mastercard cartel was valid and Woolworths was supporting the EFT side, then they would do the same thing across all their outlets, such as BWS, Tandy etc, which all have an average gross margin of 15% +.

Woolworths have banned the use of Visa/Mastercard Gift cards for years, this is just an expansion of that to reduce transaction costs and increase gross margin.

The EFTPOS intention to compete against visa has been widely reported in the financial press. The intention is to increase the utilisation of their network, by getting people to move away from visa based transactions to payments processed by eftpos. So they are trying to compete and the move by woolworths to ban debit card transactions that use the visa payment processing system, is supportive of what eftpos is reportedly trying to do. Whatever we see at face value in this, IMO there could also be things happening behind closed doors.

Payments diverted from visa to eftpos:
http://au.ibtimes.com/articles/20100401/visa-woolworth-debit-card-credit-card.htm

This talks about banks getting eftpos transaction fees from customer who can't use debit. Umm the owners of eftpos might benefit by this move? Would they offer something extra to woolworths to get that benefit?
http://www.smh.com.au/news/business...-options/2010/04/27/1272133727112.html?page=2

Here something about how eftpos are working to promote their system.
http://www.ecommercereport.com.au/?p=524

Hopefully I'll find the article i originally read about this.

 

[oz_mark]

The eftpos mob cannot compete with VISA or MC for that matter, but thats got nothing to do with Woolies, its a pure cost of doing business issue, why pay 1.5% of your margin to a company when using the same card can cost you 6c as a vendor, all you have to do is educate the consumer to press SAV or CHQ rather than the Credit button.

I think you'll find that Woolies actually get paid by the banks when they process an EFTPOS transaction.

 

[samh004]

Just a side note, has anyone had a delay in their points posting to their QFF account?

If you look back a few posts there was some talk, but points have since credited for most.