ALDI's card surcharge sparks concerns among shoppers
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ALDI has long been the go-to supermarket for Australians looking to stretch their dollar further.
With its reputation for offering unbeatable deals on a wide range of products, it's no wonder many have switched to ALDI for their weekly grocery haul.
However, a revelation about a surcharge on card payments has raised eyebrows and prompted a closer look at the true cost of these 'insane' grocery bargains.
The supermarket chain has implemented a 0.5 per cent surcharge on all credit card and contactless card purchases in its stores.
While this fee may appear negligible at first glance, it's important to consider the long-term implications.
For the average ALDI shopper spending around $210 a week, this surcharge translates to an additional $1.05 on their bill. Over a year, this seemingly small amount accumulates to $54.60.
However, Yahoo Finance confirmed that customers who insert their card and select ‘savings’ can avoid the added fee.
ALDI justified the surcharge by reflecting the 'very high costs associated with accepting these cards.'
‘Rather than ALDI inflating prices across the board to compensate for the credit card acceptance costs (like most of the retailers do) ALDI instead allows customers to make the choice as to the payment method they prefer,’ ALDI’s website said.
‘This allows customers who choose the lower-cost method of payment, to receive the direct benefit by way of lower prices.’
Recent research by Canstar has highlighted that the average Australian shopper spent $140 last year on electronic payment surcharges, contributing to a staggering $4 billion nationwide—a $400 million increase from the previous year.
With the decline in cash usage and some businesses no longer accepting it, experts warned that consumers could be more susceptible to excessive surcharging.
The Australian Competition and Consumer Commission (ACCC) mandated that businesses can charge a surcharge for card payments, but it must not exceed the cost to the business for using that payment type.
‘There is a cap on the amount you can surcharge, and the merchant can only recover the cost of the transaction,’ Canstar Finance Expert Steve Mickenbecker said.
The Reserve Bank of Australia provided a guide, estimating that Visa and Mastercard credit card payments incur an average cost of between 1 and 1.5 per cent, while debit card payments range from 0.5 to 1 per cent, and EFTPOS payments are less than 0.5 per cent.
Despite the surcharge, ALDI's low prices continue to attract shoppers.
Many have shared their significant savings since switching to ALDI, with one mum revealing she saved over $50 on her weekly shop compared to her previous purchases at Coles.
Another shopper highlighted the dramatic difference in size and price between ALDI and Woolworths, describing the difference as 'insane.'
A third shopper was shocked that there was ‘such a big difference’ between the prices at Woolies and ALDI.
However, she added, ‘ALDI is cheaper for sure with 90 per cent of products, but ALDI also doesn't have everything Woolies and Coles have.'
ALDI claimed that it saved customers a total of $3.4 billion last year and encouraged shoppers to give it 'a go’.
‘Our everyday low pricing model means customers have certainty when they walk through our doors, so much so that we can confidently say that we will not be beaten on the cost of the weekly shop,’ an ALDI spokesperson said.
Have you compared prices from ALDI with other supermarkets? Share your thoughts with us in the comments below!
With its reputation for offering unbeatable deals on a wide range of products, it's no wonder many have switched to ALDI for their weekly grocery haul.
However, a revelation about a surcharge on card payments has raised eyebrows and prompted a closer look at the true cost of these 'insane' grocery bargains.
The supermarket chain has implemented a 0.5 per cent surcharge on all credit card and contactless card purchases in its stores.
While this fee may appear negligible at first glance, it's important to consider the long-term implications.
ALDI implemented a 0.5 per cent surcharge on all card purchases. Credit: Shutterstock
For the average ALDI shopper spending around $210 a week, this surcharge translates to an additional $1.05 on their bill. Over a year, this seemingly small amount accumulates to $54.60.
However, Yahoo Finance confirmed that customers who insert their card and select ‘savings’ can avoid the added fee.
ALDI justified the surcharge by reflecting the 'very high costs associated with accepting these cards.'
‘Rather than ALDI inflating prices across the board to compensate for the credit card acceptance costs (like most of the retailers do) ALDI instead allows customers to make the choice as to the payment method they prefer,’ ALDI’s website said.
‘This allows customers who choose the lower-cost method of payment, to receive the direct benefit by way of lower prices.’
Recent research by Canstar has highlighted that the average Australian shopper spent $140 last year on electronic payment surcharges, contributing to a staggering $4 billion nationwide—a $400 million increase from the previous year.
With the decline in cash usage and some businesses no longer accepting it, experts warned that consumers could be more susceptible to excessive surcharging.
The Australian Competition and Consumer Commission (ACCC) mandated that businesses can charge a surcharge for card payments, but it must not exceed the cost to the business for using that payment type.
‘There is a cap on the amount you can surcharge, and the merchant can only recover the cost of the transaction,’ Canstar Finance Expert Steve Mickenbecker said.
The Reserve Bank of Australia provided a guide, estimating that Visa and Mastercard credit card payments incur an average cost of between 1 and 1.5 per cent, while debit card payments range from 0.5 to 1 per cent, and EFTPOS payments are less than 0.5 per cent.
Despite the surcharge, ALDI's low prices continue to attract shoppers.
Many have shared their significant savings since switching to ALDI, with one mum revealing she saved over $50 on her weekly shop compared to her previous purchases at Coles.
Another shopper highlighted the dramatic difference in size and price between ALDI and Woolworths, describing the difference as 'insane.'
A third shopper was shocked that there was ‘such a big difference’ between the prices at Woolies and ALDI.
However, she added, ‘ALDI is cheaper for sure with 90 per cent of products, but ALDI also doesn't have everything Woolies and Coles have.'
ALDI claimed that it saved customers a total of $3.4 billion last year and encouraged shoppers to give it 'a go’.
‘Our everyday low pricing model means customers have certainty when they walk through our doors, so much so that we can confidently say that we will not be beaten on the cost of the weekly shop,’ an ALDI spokesperson said.
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