Cash or card? Coles' bold new checkout policy might affect how you pay in the future!

In an era dominated by digital advancements, the debate over cashless transactions has ignited fervent discussions worldwide.

Some argue that transitioning to a cashless society brings forth numerous benefits, including enhanced convenience, security, and efficiency, while others raise concerns regarding issues of accessibility, privacy, and potential exclusion of marginalised communities.

Amidst the debate, Coles is the latest major retailer to navigate the shifting tides of consumer payment preferences.


A leaked internal memo revealed that Coles Liquor, which includes Liquorland, Vintage Cellars, and First Choice, is preparing its staff for a significant, albeit temporary, shift to 'card only' transactions.

This move comes as Armaguard, a primary cash transport service provider, faces potential insolvency due to the declining use of physical currency.

The 'industry-wide challenges' cited by a Coles spokesperson are set to impact the supermarket and liquor store giant from Wednesday, March 27 to Friday, April 5.


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A leaked internal Coles memo revealed staff were advised how to handle customer queries on a temporary transition to ‘card only’ transactions. Credits: Shutterstock


During this period, Coles staff were instructed to pivot to 'card only payments' should their cash reserves dwindle, and to inform customers of the change with a 'card only' notice at active registers.

When asked why customers cannot make cash payments, the memo advised employees to respond with: ‘Our change reserves have been impacted by a decline in cash transactions, along with industry-wide challenges with cash-movement services. All card purchases are still accepted.’

However, Coles was quick to clarify that this adjustment did not signify a total transition to a cashless operation, and emphasised that the temporary alteration would probably affect only a small portion of customers.

‘We are not transitioning to cashless transactions,’ a spokesperson asserted.

‘Due to industry-wide challenges with cash movements, we are taking some temporary steps to prepare for disruption to Armaguard services. Cash transactions continue to be available in all Coles supermarkets and Coles Liquor stores.’


Australian Banking Association CEO Anna Bligh indicated that major banks, along with Coles and Woolworths, are involved in a short-term bailout deal with Armaguard to navigate these challenges.

This is reflective of a broader trend, with the Reserve Bank reporting a steep decline in cash usage for consumer payments, from 70 per cent in 2007 to a mere 13 per cent in 2022.

Coles isn't alone in its move towards card-centric transactions.

Several KFC outlets in New South Wales, and select McDonald’s restaurants in Melbourne also adopted a card-preferred policy, citing security concerns.

While businesses in Australia are not legally required to accept cash, the Australian Competition and Consumer Commission (ACCC) mandated that they must be ‘clear and upfront about the types of payments they accept’.

Despite this, a study by Waave found that 71 per cent of Australians are concerned about the country transitioning to a cashless society, with 41 per cent expressing they are ‘extremely concerned’.

Additionally, Baby Boomers, regional residents, and lower-income households expressed the most anxiety.


The implications of this shift are far-reaching.

Coles' Kununurra store in Western Australia has already paused cash-out services due to a surge in demand for cash following local bank closures, according to a spokesperson.

This is a microcosm of a larger trend, with the Australian Prudential Regulation Authority noting the closure of 424 bank branches and the removal of 718 ATMs in the year leading up to June 2023.
Key Takeaways
  • Coles supermarket is preparing for a potential disruption to cash transport services, with a temporary 'card only' policy due to industry-wide issues, including the potential insolvency of Armaguard.
  • Staff at Coles Liquor stores were instructed to convert to card only payments and display notices if cash reserves are low during the affected period.
  • The Coles spokesperson confirmed this does not signal a permanent move to cashless transactions and that cash is still accepted at their stores.
  • There is a decline in the use of cash for transactions in Australia, with a significant number of Australians concerned about the move towards a cashless society.
Do you believe cash should remain king at the checkout, members? Share your thoughts and experiences with us in the comments below.
 
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My local chemist prefer cash,as they are getting charged fees from banks, also my hardware shop wants cash🐰I have often not paid for coffee,when I don't always carry my card, will leave my full trolley of provisions instore,if they won't accept cash,👍😕
If they don't accept 'cash' I just drop what ever, breakable or not and go!!!!
 
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Reactions: freedy50
I find it interesting when people say they leave behind trolleys full if there is no cash payment or manned checkouts open. Do you tell a staff member or make a big scene of it? How often have people actually done this? Just asking.
I do this all the time, don't hesitate!! No cash, no business from me!!
 
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Reactions: freedy50
I have left items (not a large trolley full) at the checkout when they changed to more self serve (have never used them) as no one on the 12 or less. I then spoke to the manager next time I went in & he said the staff member at the self-serve can come down & put through 12 or less. I have also been into a shop (Australia wide) in a rural town to buy sheets and they had a sign on the counter 'CARD ONLY'. I asked if that was correct and they said "YES we don't take cash anymore because" I stopped her then & said "I don't want to hear the reason the company has told you to pass onto customers, I do have a card BUT I am not having a company tell me that I can't use legal tender so I will NO longer be shopping here in the future". The manageress acknowledged I had been a good customer for many years and was sorry I felt that way. I have kept my word & of course I won't buy from them online either. We have to stand up for our rights. Look what happened in 2020 - 2023. IF everyone had stood together things would have been a lot different - can't sack everyone.....just saying
We had a cashless store were I do my shopping and When it opened I was unaware that they were cashless. I wanted to buy something and soon found out at the counter. I voiced my opinion, dropped the goods and walked out and vowed never to step foot in their shop again!! Just over 12 months later, the said shop put a sign up, saying they now accept cash, my comment was: bully for you and I still don't shop there!!
 
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Reactions: Veggiepatch
The demise of cash will only benefit the greedy businesses who charge a percentage if we use a card. It must be more expensive for businesses to use cash, holding cash on premises, extra labour to handle cash, cashing up and banking each day. It should be illegal to charge for use of card, build it into the cost of doing business.
Maybe the greedy businesses need to get onto the greedy banks about the fees that they charge but I don't think it is just that!
 
How do those who have been scammed and have to get a new card survive while the new card is processed in my case with public holidays in the week/weeks and being single I have to revert to cash
 
You should still have the option to use both.especially when there is surcharges to use cards.
 
If you shop at country markets , most stall holders will only take cash . If you only be able to pay by card , the products you buy will be more expensive , as they will pass on the fees to you. Also the farm stores in my area , you pay cash as you put your money in a locked container , just make sure you bring in the right cash. . You support the local farmers and pay a lot less as you would at the supermarkets.
 
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Reactions: Little Possie
I though we lived in a democracy so why are we being denied the right to choose CASH I hope I die before we become a cashless society as the banks and Government will know exactly what we spend our money on REMEMBER BIG BROTHER
 
Arent we lucky that all we have to worry about is which way to pay for our groceries? not if there are groceries available? Or id we can afford to buy food?
but in answer to the question: I think we as customers should have the choice between cash or card, self serve or manned checkout as well as between chicken, beef, pork or tofu, full cream milk or skim, plant based etc
 
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Reactions: Jo Piper3
Government should legislate that cash being legal tender is not to be refused.
Sadly I don't think the government would be able to tell business that they can't refuse to accept cash, however it has been made clear that the business have to put up signs stating they are only taking card only payments. It would then be up to the individual to decide whether or not to use their services.
 
I use both but if I can I will mainly use cash, I don't like using my card for everything, I also refuse to go to a place that will only take card and or charge you for each purchase you make on an item using your card. I am definitely a cash supporter.
 
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Reactions: Veggiepatch
Cash should remain an option. If people want to use a card let them, if they want to use cash they also should be able to use that. I use both.
 
What are cashless businesses using when their link to the banks is down? This happens so often. At least when they have cash, they can remain open and use cash. If they are cashless they have to close until the link is restored.
 
I find it interesting when people say they leave behind trolleys full if there is no cash payment or manned checkouts open. Do you tell a staff member or make a big scene of it? How often have people actually done this? Just asking.
It's the current trendy bandwagon that silly people jump on🙄

The same with boycotting shops that don't take cash, which is up to the businesses what they do.
 

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