If you choose the cheque or savings option you are slugged MUCH higher fees for the privelege. Get a DEBIT Visa option linked to your account and ALWAYS choose the credit option. The fees will then be minimal. The Visa option is processed the same day through your account, so if there is a debit balance it usually will be declined at point of sale. Worth noting that the usual saftey guards associated with paying by credit are only there if you SIGN a slip, if you choose to use a PIN and anything goes amiss with the transaction then the onus is on you to cough up.
Cheque accounts attract very high fees, and there really is no need to have a cheque book in Oz. I doubt if I have used more then 4 or 5 cheques in 18 years here, in the UK I used a whole cheque book a week! If you do ever need a cheque drawn on your account you can get a bank one drawn in the bank for you.Hi Guys
I work for Bank SA and this is how it works with them.
Whether you press credit, savings or cheque it still comes out of your day to day transaction account.
Hitting credit takes longer for the shop to get their money and creates a difference between your current and available balance.
Hitting savings or cheque means the shop gets their money immediately and your account balance is affected immediately, hence no difference between current and available.
Hitting the credit button as opposed to the cheque doesnt cost any more, eftpos transactions are eftpos transaction whichever options you choose. You will only incur a fee if your account charges fees for eftpos transactions.
Hope this is a little clearer. This only applies if you only have the one account linked to the card. If you have two accounts linked to the card, then you press cheque or credit for your day to day account and savings if you want to debit your savings account, but the bank will tell you which account is which on the eftpos terminal. Be careful with this one because if not set up correctly at the bank then hitting savings may not necessarily debit your savings account.
If you have more than one account linked to the card, double check with your bank which option to hit at the terminal to debit which account.
hope this clears things up a little
MandyAll of the above very helpful... but I am still confused as it doesn't appear to matter on our account at all which we press... comes out of the same place but I have been choosing credit all the time on the basis I think it is safer? DH on the other hand who grew up in this bizarre banking system always uses savings. BUt in those days he didnt have a visa debit account...Here is an explanation from the consumer website, choice.com.au
As hinted by another member earlier, the benefit of this system is that you can often use 1 card to access different accounts, depending which option you choose. In fact, many banks allow you more options, accessing "Other" accounts, all from the same card. Bank branches can normally set this up for you on the spot..
Many Banks will waive ATM fees if you have a mortgage with them (arranged via a broker or direct - doesn't matter) or if you have significants funds on deposit with them.
Comments from choice:
Cheque savings or credit
An increasing number of financial institutions now offer debit cards that can be used for transactions through both the Scheme (MasterCard or Visa) and EFTPOS systems.
If you have one of these cards, your decision about which button to press at the retailer's payment terminal determines which system your transaction goes through and what costs are paid behind the scenes.
When your debit card is swiped, you generally have three options:
If you press Cheque or Savings, your transaction will be processed through the EFTPOS system after you enter your PIN. This means your bank will pay a flat fee — for example 5 cents — to the retailer’s bank.
However, if you press Credit, the transaction goes through the MasterCard or Visa scheme system. A MasterCard or Visa fee is paid by the retailer’s bank. “Chargeback” protection may also apply — handy when a retailer or manufacturer goes out of business but still owes you a product or money.
According to the Australian Merchants Payments Forum (AMPF), retailers prefer customers to press cheque or savings, as the costs for the retailer are lower (two or three of the largest retailers even receive a fee for EFTPOS transactions). “Banks, on the other hand, make more money when the Credit button is pressed,” says Russell Zimmerman, AMPF Chair.
David Bell, Chief Executive of the Australian Bankers' Association, points out that scheme debit card fees are regulated by the Reserve Bank. EFTPOS interchange fees are also regulated.