Choosing Cheque and Savings when inserting or swiping a card at a terminal had been the way to go at EFTPOS terminals in Australia for as long as cards could be used (since 1984 in fact, when the first magnetic stripe “key card” was introduced). Cheque and Savings transactions were synonymous with transactions from a bank account, and choosing “Credit” was synonymous with using a credit card (duh). Back then, Visa and Mastercard only offered credit cards.
In order to compete with domestic debit networks globally, Visa and Mastercard then started to offer the “Visa Debit” and the “Debit Mastercard” cards – technically these work exactly like the credit cards do, but the funds are debited from your bank account rather than a line of credit. These debit cards work quite smoothly, and provide customers a whole load of benefits like global acceptance, ease of use, global access to a lost/stolen facility, etc. while protecting customers from having to get expensive credit cards to access these features.
In Australia, in the meantime, we already had a domestic network (eftpos, with a little ‘e’) that offered debit cards. Visa and Mastercard could only access the “Credit” button on POS terminals, since Chq/Sav were effectively “taken” by eftpos. The problem is, eftpos is still domestic only, so you can’t really use it outside Australia.
In the interests of simplicity and global acceptance, Xinja cards are Mastercard only – which means you get all the benefits of the good old “key card” and more – the ability to tap, insert, use PIN, withdraw cash at an ATM, and of course the big one - global acceptance. The only wobbly thing is, you need to choose “Credit” to access it at POS.
(Note: there is NO “credit card fee” or any additional fee for this!)
A single scheme which gives you everything you need means easier implementation for us, which of course is cost saving for our customers.
The good news is, when you tap the card, there’s no need to make any choice – your transaction is just processed automatically. So my 2c is - at POS terminals, just tap away! If the transaction is over $100, you can still tap, and will most likely need to enter your PIN.
The only time you really need to insert the card and choose “Credit” is on the very first transaction with your card – but we’re going to updating this so that inserting is no longer necessary at all. Less confusion, happier customers