One of the reasons my preference is given to the small locally owned [originally Aussie owned]corner shops and markets Rechtub. However, these smaller shops now of course are taken over by overseas chains; Australasian. Inevitable for consumers on the other hand. Note the variety and specials [with the exception of vegetables] consumers on the plus side enjoy for processed 'goods', 'Processed old meat' frozen for months in storage along with most fruits and meat brought out on the first day unloaded, double the price until a couple of days later. As you explain rechtub, consumers are to blame, or are we?

Ten years ago in most towns and cities we the consumers had no idea of the American food chains and retail outlets heading this way. We did not have any idea of the increasing population. The local markets and corner shops would never have coped with the surge in population without some type of large 'woolies and coles' chains.

The problem not to be blamed on Australians; I see it as a combination of issues, involving then Australian Banks cautiously and reluctantly loaning people money to start their own businesses, not supporting businesses, [the tall poppy syndrome existed], and the loss in balance of trade. Real estate prices escalated for people to rent premises, a great deal of our land bought up "big" by foreign interests. When one casts their memory back 10 years ago, MOST of our opportunities flew out the window, at the same time.

If Banks and government had supported most of the original successful large Australian owned businesses our country would be in a better position today. Too late, as the damage is done, unless we innovate, engineer and export, with our Banks supporting us; people will struggle. Without balance of trade many young Australian families' health issues will dramatically escalate from financial pressure. Violence increases

The problem is the damage that is done to small farmers and manufacturers by these Major Supermarkets. Much of their product is sourced overseas or from suppliers who import product that is efficiently grown here by small farmers and manufacturers e.g. oranges, peas, pineapple etc etc. It is just that wages and conditions in supplying countries are lower than OZ.

We need some form of equalising tax to offset wage disparity on imported goods. The taxes could be used to assist development in the countries from which the goods were sourced to improve their conditions. This would allow small farmers and suppliers to exist in Australia equally with small farmers in developing countries.

There is need for local product to give diversity the the local community and distributed by exclusive OZ only retailers.

After the credit blow out of last year many people have changed their credit card for a debit card. That is a good thing.
My credit union has always put its members' interests first and recommended that we avoid fees by always using the 'credit' button when buying goods in shops. I have only ever had a debit card and this has worked well for me, apart from when buying overseas goods like travel tickets because some overseas banks don't recognise Australian debit cards and insist on charging a credit card levy.
But now Woolworths, Safeway et al will apply a similar levy to all debit card users in Australia.
If this sends people back to the credit card, are they not blowing up that economic bubble that Kevin Rudd's foresight managed to avoid?

My credit union has put out this notice:

Woolies denies customers payment choice
15 April 2010

Woolworths have announced that effective 15 April 2010, Visa Debit card transactions pressing the ‘Credit’ button will no longer be accepted, and the ‘Sav’ or ‘Chq’ buttons must be used.

This is currently in effect for all stores in the Woolworths company group including:

BIG W
Woolworths Supermarkets
Safeway Supermarkets
Woolworths Liquor
Safeway Liquor
BWS
Dan Murphy’s
Dick Smith
Tandy
Woolworths Petrol
Safeway Petrol
Caltex Woolworths petrol outlets
Thomas Dux
ALH (bottle shops).
For more information read the full press release issued by Abacus, the Credit Union Industry body.
http://www.cua.com.au/wps/wcm/connect/website/home/sitetools/news/abacus

I may need a little education on this one Polly Flinders.

Forgive my ignorance. I'm one of those people who uses a Credit Card and pays it off each month, so I have never actually used a Debit Card.

>>many people have changed their credit card for a debit card. That is a good thing.<<

Got that.

>>Woolworths have announced that effective 15 April 2010, Visa Debit card transactions pressing the ‘Credit’ button will no longer be accepted, and the ‘Sav’ or ‘Chq’ buttons must be used<<

Isn't that what a Debit Card does? Take money straight out of your bank account? Why would you press "Credit" anyway?

What am I missing here? Do the Banks charge extra for doing this?

Pericles, with Visa cards (credit or debit), if the cardholder conducts an EFTPOS transaction and selects "Credit" at the POS terminal, they are not charged a fee by their financial institution. Rather, the retailer pays a small merchant fee.

This move by Woolworths and its subsidiaries shifts the transaction cost from the retailer to the consumer. I think it's a penny-pinching exercise perpetrated by this retail monolith because they think they can get away with it. Obviously, lack of competition is a factor in that commercial assessment. It annoys me because I don't have a credit card as such any more, because I don't need one. The Visa debit card has until now worked exactly the same way as a credit card, except that I use my own money.

Speaking of lack of competition, I wasn't aware that Woolworths owns both Tandy and Dick Smith. What's that - sham competition?

Thanks CJ.

>>if the cardholder conducts an EFTPOS transaction and selects "Credit" at the POS terminal, they are not charged a fee by their financial institution.<<

So putting it the other way around, when you use a Debit Card and hit "Chq" or "Sav" - i.e. you pay the retailer with money you suck directly from your bank account - you are charged a fee by the Bank?

Trooly rooly?

Wow.

But I'm still puzzled at the concept of hitting "Credit" on the EFTPOS machine, when presenting a Debit Card. Does it perform the same physical act as a debit transaction, i.e. draw down on your bank balance?

Where does the "Credit" part come in?