How to avoid credit card fees at the supermarket

There are no card fees when you shop at Coles, Woolworths or IGA. Aldi charges 0.5% on Mastercard or Visa cards and doesn't accept Amex cards.

What fees apply when I use my credit card at the supermarket?

The good news is you can avoid card surcharges completely when shopping at Coles, Woolworths and IGA.

Supermarket card surcharges

SupermarketVisa SurchargeMastercard SurchargeAmex Surcharge
Coles
0%
0%
0%
Woolworths
0%
0%
0%
Aldi
0.5%
0.5%
Not accepted
IGA
0%
0%
0%

How to avoid Aldi credit card fees

Aldi charges a 0.5% surcharge when you pay with a Mastercard or Visa credit card. You even get charged if you use a debit card and tap to pay, as contactless transactions are processed through the credit card network.

But if you insert your debit card into the EFTPOS machine when paying you can avoid this. Aldi's website says "Customers who process payment by inserting their card and selecting savings will avoid this fee."

This only applies to debit cards. You can't avoid the surcharge with a credit card.

Does Aldi accept Amex cards?

Aldi currently doesn't accept American Express credit cards. You'll need to pay with a Mastercard or Visa credit card or use a debit card.

6 ways to avoid or reduce credit card fees at the supermarket

  1. Use a debit card. Supermarkets are less likely to charge a fee if you pay with a debit card. If they do, it is usually lower than the cost of using a credit card.
  2. Insert your card. Contactless payments can incur higher fees than when you pay by inserting the card. If shopping at Aldi, insert your debit card instead of tapping to avoid the 0.5% fee.
  3. Use cash. This is a sure way to avoid card fees. You could even ask to split between cash and card if you don't have enough on you.
  4. Don't get cash out with a credit card. Pulling cash out with a debit card is fine. But using a credit card to withdraw cash is called a cash advance. This incurs an immediate fee (around 3% of the transaction) and you get charged interest at a higher rate.
  5. Pay off your credit card quickly. If you use a credit card to get cash out or if you pay a surcharge, repaying what you've spent quickly helps you save on interest charges.
  6. Watch out at Aldi or smaller stores. There's no card fees at Woollies, Coles or IGA. Remember the surcharge if you're shopping at Aldi and pay attention at smaller stores too.

Card surcharge rules

All retailers must inform customers of any surcharges at the checkout, so make sure to check if a fee applies before paying with a credit card. If it does, you might be better off paying with a debit card (by inserting your card) or cash to avoid the surcharge.

How much will supermarket fees cost?

The surcharge is based on the value of your transaction. So if you buy $150 worth of groceries at Aldi, and need to pay the surcharge of 0.5%, you'll pay an extra 75 cents on your total bill.

If you spent $200 at Aldi on your credit card you'd pay a $1 surcharge. It might not seem like much but it does add up over time.

Finder survey: Where do Australians regularly shop for groceries?

Response
Coles76.1%
Woolworths75.8%
Aldi44.92%
IGA17.63%
Costco6.47%
Harris Farm3.49%
Other3.39%
Drakes2.09%
Foodworks1.89%
Friendly Grocer1.2%
Source: Finder survey by Pure Profile of 1004 Australians, December 2023

How can I get more value out of using my credit card at the supermarket?

While using a credit card can incur a fee at some stores, you can also get a lot of value out of shopping with a credit card.

  • Supermarket credit cards. If you shop at Coles with a Coles credit card you can earn more Flybuys Points and get more value when you shop.
  • Rewards credit cards. Rewards credit cards are linked with a bank loyalty program and typically earn points per $1 spent on purchases. You can redeem rewards such as gift cards, merchandise or cashback on your credit card. Some rewards cards also allow you to convert your rewards points into frequent flyer points.
  • Frequent flyer credit cards. Frequent flyer cards earn you Qantas or Velocity Points when you spend. You can redeem your points for travel rewards, including flights and upgrades, accommodation and travel packages. You can start comparing frequent flyer credit cards linked with Qantas or Velocity on Finder.
Richard Whitten's headshot
Our expert says: Points can outweigh supermarket card fees

"Let's say you shop at Aldi with a credit card that earns you 1 Qantas Point per dollar spent. If you spend $8,000 a year at Aldi that's 8,000 Qantas Points. You'd also pay $40 in card fees on that spending. Ouch. But Qantas Points, if redeemed for reward flights, can be worth 2 cents per point or more. That's $160 of value from your supermarket shop."

Money Editor

Frequently asked questions about supermarket card fees

Richard Whitten's headshot
To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.
Rebecca Pike's headshot
Written by

Senior Money Writer

Rebecca Pike is Finder’s senior money writer, with over 10 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise, A Current Affair, 9News, and Sky News, and contributes expert analysis to publications like Yahoo Finance and The Latch. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

Rebecca's expertise
Rebecca has written 208 Finder guides across topics including:
  • Home loans
  • Cost of living
  • Budgeting

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5 Responses

    Default Gravatar
    mazAugust 19, 2015

    Hi Jonathan,
    Thanks for the speedy response. It’s a Visa card issued by Travelex.

    Regards
    Maz

    Default Gravatar
    mazAugust 18, 2015

    I am South African and visit my children and grandchildren in Australia. Initially I had a travel card which I could use to withdraw “cash out” at supermarkets, however when my new card was issued, now with a chip, I was unable to withdraw cash from the supermarkets, only at ATM’s. How can I get around this problem. Many thanks

      AvatarFinder
      JonathanAugust 19, 2015Finder

      Hi Maz, thanks for your inquiry!

      The eligibility of using a travel card overseas depends on the card network e.g. AMEX, MasterCard, Visa etc. So I can assist you further could you please state which travel card you are using?

      Cheers,

      Jonathan

    Default Gravatar
    KimMay 7, 2015

    When making purchases (groceries) in germany, Italy, can cash be withdrawn at the same time when paying by travel cash card with Euros on it

      AvatarFinder
      JonathanMay 7, 2015Finder

      Hi Kim,

      Thanks for your inquiry.

      Cash withdrawal facilities with purchases depend on the retailer’s policies and partnerships with banks/ATM facilities. You may like to refer to the following link for a guide on travel money in Germany.

      Cheers,
      Jonathan

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