Consumer impacts of Woolworths’ decision to stop issuing credit cards

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Has anyone thought about whether people with a Woolworths credit should agree to being moved to a Macquarie bank card?

Woolworths sent me an email a few days ago advising that this would happen unless I pay the outstanding balance and close the account by Thursday 1 June.

I have just started to look in detail at what the Macquarie card will cost and offer compared to my Woolworths card, the other credit card I have, and any that I might apply for. I’m also looking at whether to pay to become an Everyday Rewards Extra member in order to continue to get 10% off one shop each month at Woolworths and Big W.

For a variety of reasons, including being retired, it can be very difficult (and sometimes impossible) for some people to get a new credit card

So, it seems to me that before closing the Woolworths account, anyone who wants to continue to have a credit card, and does not already have another one, should make sure that they can get one from another issuer.

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As mentioned in Choice and some other topics in this forum, getting a credit card once no longer employed can be a real problem.
So hang on to what you have, and allow it to be transferred to another provider, until you have successfully found another CC provider with what suits.

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Here is some information in the change…

I agree with @Gregr, providing Macquarie Bank doesn’t decide to do is own credit risk assessments post transfer. This has a potential to occur as it is up to the card issuer to determine credit risks. It might be worth contacting Woolworths credit card team to ask about the transfer and whether it will involve a new credit risk assessment by Macquarie Bank. Hopefully this doesn’t occur as it could impact on many customers who financial position has changed since applying for a Woolworths credit card.

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Thanks for the reply. Fortunately, as i indicated in the post i have another credit card, so I do not have the problem of potentially being without a credit card if I decide to cancel the Woollworths one. But many people may not be in my situation and so, as you say, they need to make sure that they have another one before they cancel.

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Thanks for the reply.

Surprisingly I have not seen anything in the media about this new situation. (The AFR story you refer to is a few years old and refers to Macquarie partnering with Woolworths to provide the current Woolworths card.)

This is a pity because there are some important things for card holders to consider, including the Macquarie cards not providing 10% once a month off a Woolworths and Big W bill, and not providing any QFF points. Hopefully, this conversation will provide some info to assist people affected by the change and maybe the media and CHOICE will do the same in due course.

The info i got did NOT suggest that Macquarie might not transfer any of the current Woolworths card holders who wish to be transferred. But, I will check with them because it is a very important issue.

I’m also going to have a close look at the T&Cs of the Macquarie card’s free travel insurance that I’ll get if I do decide to agree to the transfer. Will keep everyone posted about what I find out and hope that others will share any info they get and their views on issues. For example, as I mentioned my post, a solution to not longer getting 10% off a Woolworths and Big W bill each month could be to pay $59 a year to join Woolworths Everyday Rewards Extra.

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Investigating further with existing cad holders, it seems the main change may be Macquarie Bank appear to be scrapping their ‘white cards’ they issue under other ‘brands’, like the Woolworths credit card…

They have also been holding the issuing of new cards/accepting new card applications which appears may have raise the ire of retailers.

If this is the only change, the difference could be limited to the card having a different ‘brand’, that being Macquarie Bank. If the change is more significant like that outlined in my previous post, then this could have wider ramifications for existing credit card holders.

This article also suggests Woolworths may be looking into other ‘branded’ card partners to replace Macquarie Bank. If this is the case and existing cardholders want a Woolworths ‘branded’ card to catch any card offers like those which existed in the past (if this happens), it would require a new credit card application.

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I think there are other options than credit cards to get this benefit.
My partner bought a Woolworths Telstra SIM and service which is cheap and works well. We were unaware of the 10% monthly discount until we were asked if we wanted to use it at the checkout.

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The info Woolworths sent me did not suggest that they might some time in the future issue Woolworths cards using another financial institution. I would have thought that is they were going to do that they would have done it now. .

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Thanks for this info. This is indeed another way to continue to get the 10% monthly discount. And, as i mentioned in my original post, another way is to pay to join the Woolworths Everyday Rewards Extra program.

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If they were in the very early stages of outsourcing another provider, they might not yet be in a position to advise what may happen in the future. If the outsourcing process is unsuccessful and they indicated that there was going to be plans for a new card, this could be a PR disaster especially if consumers cancelled their existing cards based on this expectation.

They could also have an agreement in place with Macquarie Bank which prevents them doing anything which may jeopardise the migration of Woolworths (Macquarie Bank White) Card holders to a Macquarie Bank branded card.

The media could also be speculating, but I expect that Woolworths branded card would have value to Woolworths as it assists with creating loyalty and it’s consumers spending in store. This is where the information about potential outsourcing to another provider may have some basis.

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No I don’t mind in the least. They refused me a credit card and I have never not paid any of my debts in my life.

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I’m really cross about this change. The 10% off shop is great for me but not worth paying another $59 pa for. I’ll also miss the regular shopping cards I receive. WW Visa is my main card. I also have AMEX but benefits aren’t as good. I’m retired so can’t get another card easily. I just paid my $49 annual fee to Woolworths. Do you get a refund if you cancel? The Macquarie card is $99 pa. Will we pay more? What are the rewards on this new card? Are they good? Does anyone know? I feel like Woolworths has ‘cornered’ us into having no other choice but to go along with the change and accept all the conditions of this new card.

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Thanks for the post. Your WW card is not the same as mine, which is a Platinum (for which i have just paid the annual fee of $169 plus $29 for an additional card. So the costs and some of the benefits are different to yours. For example,with mine in addition to the 10-% off one WW and one Big W bill a month I also get 0.5 Qantas frequent flyer points for every dollar spent, plus (but have never used) some insurance cover and car hire excess cover.

Regarding some of you points/questions:
1. Ways to continue to get the 10% off a monthly bill. I note that you don’t think it worth paying another $59 a year to join the WW Everyday Rewards Extra. But that might be a very cost effective move for some people. Another approach might be to get a WW mobile phone plan. Are there any other ways? Also, it is relevant to note that according to the call centre person i spoke to, the 10% off the bill will continue to apply until you activate your replacement Macquarie card, which may be anytime until 30 September.

2. Getting another card. As several people have mentioned, this can be very difficult, if not impossible, for retired people. As for me, this is probably not an option for you.

3. Fees. For me the Macquarie card will cost $99 a year with no extra for additional cards. Is this also what you have been advised that a Macquarie card will cost you? I ask because they also have a RateSaver card which only costs $69 a year but which does not offer any Macquarie rewards points. Have you been offered this or the more expensive $99 Platinum card or been given a choice?

4. Fee refunds. These are not mentioned in the paperwork I received either for people who decide to cancel the WW card or who decide to have a Macquarie card but think they should be entitled to a partial refund given the reduced value of the benefits of the Macquarie card. . I phoned WW about this but did not get a clear answer to either question. I’d be very interested in what anyone else finds out about.this. The paperwork I received said only that the $99 Macquarie fee would be charged on the anniversary of the WW card,.which i my case would be in March 2024.

5. Rewards points. .The Macquarie card i will be moved to offers 1.25 Macquarie points per $ spent and can be used only to buy e gift cards. The points are worth 0.5 cents each, i.e 0.65 cents per $ spent. They can not be converted to QFF points. This may be a big issue for some people because the WW Platinum card gave 0.5 QFF points per $ spent. However, I think it important that people interested in continuing to collect QFF points realise that by joining the WW Everyday Rewards Extra program you get 3 WW reward points per $ spent and that WW rewards points can be converted to QFF points at the rate of 1 WW point = 0.5 QFF point, plus (as mentioned earlier) you retain the 10% of one bill each month at WW and Big W benefit.

I am still considering my options and still need to look closely at the Macquarie insurance cover. However, at this stage I am inclining towards accepting the Macquarie card offered and enquiring about the availability of a partial refund of the $198 fees I paid in March. I may also join the WW Everyday Rewards Extra program but only for one (not both) of our Everyday Rewards cards.

Comments and more information welcome.

PS In addition to the above, please note that::

  1. My current WW credit card is a WW Qantas Platinum. There is also a WW Everyday Platinum card which has different benefits.
  2. WW Everyday Rewards points can also be earned and converted to QFF points (2000 Everyday Rewards Points = 1000 QFF points) if you have only an Everyday Rewards Card.
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Here’s an update on the WW Everyday Rewards Extra Program:

  • From 1 July the annual subscription will increase from $59 to $70 .
  • The points earned per $ spent will reduce from 3 to 2.
  • The 10% once a month discount off a bill at WW and BigW will no longer apply to online purchases.

However, annual subscribers will get 3 months extra free and monthly subscribers will get one free month.

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