ALDI's card surcharge sparks concerns among shoppers

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.


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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.
Key Takeaways
  • ALDI charges a 0.5 per cent surcharge on credit card and contactless card purchases, which could add up over time for frequent shoppers.
  • Customers can avoid the surcharge by inserting their card and selecting 'savings' at checkout.
  • ALDI explained the surcharge as a way to keep prices low for customers who choose less expensive payment methods.
  • Despite the surcharge, many Australians report substantial savings by shopping at ALDI compared to other supermarkets.
Have you compared prices from ALDI with other supermarkets? Share your thoughts with us in the comments below!
 
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Of course Aldi passes the cost onto the consumer. I insert my card/savings at Aldi to avoid a % charge.
Coles and Woolworths don't charge customers like Aldi does. Profits from Aldi has to make it's way back to Germany somehow.
When you put your card in and tap savings, the machine recognises that you are using your own funds and does not add the surcharges.
Otherwise ALDI is charged by the bank, no profit going back to Germany or anywhere else for that matter.
Coles, Woolies etc do charge you it's just included in the price of the goods. At least ALDI show you how much you are being charged BY THE BANK you have no idea how much extra you are paying when the charge is hidden in the cost of the goods.
It would be handy if people would do some research and get their facts straight before making ill informed statements.
 
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I am confused by this article as Aldi have always charged a surcharge for paying by credit card. The fee may have gone up, and this is what the article is referencing, but the fee has always been there.
 
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I knew about this surcharge years ago and that’s the reason I insert my card, not tap. Aldi are just as greedy as the other supermarkets. They must make quite a good profit from those surcharges.
Actually, they don't given how much the banks charge them for every single transaction that goes through the machine.
 
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When you put your card in and tap savings, the machine recognises that you are using your own funds and does not add the surcharges.
Otherwise ALDI is charged by the bank, no profit going back to Germany or anywhere else for that matter.
Coles, Woolies etc do charge you it's just included in the price of the goods. At least ALDI show you how much you are being charged BY THE BANK you have no idea how much extra you are paying when the charge is hidden in the cost of the goods.
It would be handy if people would do some research and get their facts straight before making ill informed statements.
Does it really matter who's doing what? With how expensive groceries are, it is undoubted that these corporations are having a gouge.
 
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I am confused by this article as Aldi have always charged a surcharge for paying by credit card. The fee may have gone up, and this is what the article is referencing, but the fee has always been there.
I think the fee is still the same,they are not allowed to charge more than the bank fee.You are right they have always had this fee, nothing new.
Perhaps people shopping there for the first time are commenting on it.
 
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Yep I knew about the surcharge. I mostly shop now at Aldi, they don’t have much choice in Cereals and they don’t seem to restock very quickly. I’ve given up trying to get my fresh fruit/veges on a Sunday afternoon as it’s all gone. I only go to Coles for the items I can’t get at Aldi. Funny how Coles keeps sending me 10% off my shopping lately. 3 weeks in a row. 😱😂
 
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The trouble now is I have been finding stores etc NOT accepting cash. Signs up at register ETPOS only no cash transactions. I thought it was illegal NOT to accept cash but they seem to be getting away with it. Latest was at Melbourne Airport.
It’s not illegal. Some shops don’t because there are less staff now and cash takes time. It has to be counted twice a day and someone has to get to the Bank to deposit it and sometimes get change. I work casually in Retail and some of our shops take cash, some don’t.
 
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Well in that case, shop elsewhere and pay $50/week more.
If they charge me $49 to use my card, but the savings are $50, then I am $1 in front.

It's NOT a charge-for-nothing.
My wife has shopped at Aldi for 35 years - that credit card charge has ALWAYS been there.
And ... people are STILL saying they are saving money at Aldi.
It's just Aldi recouping costs imposed by the banks.
Credit always comes at an interest cost - it's not free.
To avoid a charge, insert card in EFTPOS machine and enter PIN.

btw - we don't shop there since we moved here, but were discussing this thread last night, and she said "Why don't we check them out and see what the fuss is about?"

Not rolling in money, but careful to do my sums.
You are right about the banks making their $billions from these kinds of charges.

Notice that there are very few ATM's now that belong to the banks?
To get cash, we have to use a private ATM, and the charges are $2.50 to $3 even if the withdrawal is only $20. Designed to force people to stop using cash - the banks hate cash.

There is no tax deduction for us, despite the banks supposedly paying tax on the profits.
100% correct about the ATMs not belonging to banks. I have a friend who works as an ATM technician for ITS. A division of Armaguard, who are owned by Linfox. They have also just obtained Armaguard’s main competition, Prosegeur. Each company had their own technicians etc but seeing the havoc and realisation that Linfox has the monopoly over the industry now, who knows where things will lead.

I grew up travelling up and down the east coast from dad being posted. We were always excited to see “you are passing another fox”, on the trucks. However these days, knowing how their employees are treated, I am disappointed.
 
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"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."

Interesting ... yet in the attached newspaper article(s) the RBA is reported: "Michelle Bullock is prompted to step in" ... so is the RBA having 50 cents each way?
 

Attachments

  • RBA to act on Card Fees.PNG
    RBA to act on Card Fees.PNG
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