Pump plan for Woolies credit card

A plan set to be introduced at the co-branded Woolworths and Caltex service stations has suffered opposition from a number of sides.

The idea to introduce a pay at the pump option for Woolworths credit card holders at the service stations has been criticised by a number of different organisations, the Australian Financial Review reveals.

Banks and credit unions have argued to the Australian Competition and Consumer Commission that the move will damage levels of competition among different credit cards on offer.

Organisations that have complained apparently include the Abacus banking group, Westpac and the NRMA. Indeed, the last organisation argued that the scheme could lead to the kind of duopoly present in the grocery sector.

However, Woolworths retorted that the scheme offers nothing more than another way to pay at the pump.

Earlier this month, Woolworths confirmed that it is dropping the rate of interest on its Everyday Money card to 17.99 per cent per annum. The one percentage point drop is to come into effect on February 1st.