A complete analysis of shopping and payment methods in Australia: the most comprehensive guide for 2023, a must-read for international students/new immigrants!

Hello everyone, I am the assistant of Australian Encyclopedia. Recently, some friends asked me aboutPayment methods for shopping in AustraliaNow I will summarize the relevant issues and hope it will be helpful to those who want to know more.

In Australia, a diverse shopping paradise, from large department stores to street markets, from online e-commerce platforms to specialty shops in the Chinese district, the diversity of payment methods often confuses newcomers. This article will provide you with a detailed analysis of the usage scenarios, precautions and money-saving tips of 8 mainstream payment methods.

1. Detailed explanation of mainstream payment methods in Australia

1. Cash

Although Australia has entered a "cash-free" society, 12% of transactions still use cash (data source: RBA 2022):

• Applicable scenarios: markets/farmers markets, tipping, some Chinese restaurants
• Exchange tips: The airport exchange rate is poor, it is recommended to exchange at Travelex or a bank, and it is more cost-effective to withdraw ≥ 100 Australian dollars per time
• Special reminder: 1/2 cent coins will no longer be issued from 2019, and the "rounding up" system will be used for cash payments.

2. Debit Card

Essential payment tools covering all 97% merchants in Australia:

• Recommended: ING Orange Card (free cash withdrawal from ATMs worldwide), HSBC Global Account
• Handling fee: No handling fee for local consumption, overseas issued cards may charge 1.5-3% currency conversion fee
• Security settings: It is recommended to enable Tap&Go small amount without password (default limit is 100 Australian dollars)

3. Credit Card

The average Australian holds 2.3 cards (2023 statistics), the mainstream types are:

• Visa/Mastercard: Most universal
• American Express: Department stores offer many discounts, but the acceptance rate is about 85%
• UnionPay card: Coles/Woolworths and other large supermarkets have fully supported
• Special note: Some merchants charge a surcharge of 0.5-1.5% for credit card purchases

4. Mobile Payment

Innovative payment methods with a penetration rate of 65%:

• Apple Pay/Google Pay: Best to bind a local bank card
• Alipay/WeChat Pay: Coverage rate of Chinese area/duty-free shops/chain drug stores reached 70%
• Limit description: The upper limit for a single payment is 200-500 Australian dollars (different for each bank)

5. Buy Now Pay Later (BNPL)

Australia is the birthplace of BNPL, with a usage rate of 37%:

• Afterpay: Supports 2000+ merchants including Myer/David Jones
• Zip Pay: 4 interest-free installments, applicable to online shopping platforms
• Use threshold: Australian mobile phone number and address are required

2. Payment Guide for Different Scenarios

3. Tips for saving money on handling fees

1. Currency conversion: Use a card with no foreign exchange fees (such as Macquarie Platinum)
2. ATM withdrawal: Most ATMs in 7-Eleven offer free cash withdrawal services
3. Cross-border consumption: Bind Alipay's "Exchange Rate Lock" function to lock in preferential exchange rates in advance
4. Cashback benefits: Pay attention to CommBank's monthly designated merchant 10% cashback activities

Issues related to payments for purchases in Australia

Q1: Do I need to carry a large amount of cash with me?

It is recommended to carry 50-100 Australian dollars with you for emergencies. Credit cards are generally accepted in safe areas of Australia. However, it is recommended to prepare some cash when going to weekend markets or remote towns.

Q2: Where can UnionPay cards be used?

In addition to the full coverage of the four major bank ATMs, the following merchants support UnionPay:

• Retail: Chemist Warehouse, JB Hi-Fi
• Catering: Din Tai Fung, Haidilao
• Transportation: Opal card self-service recharge machine

Q3: How to avoid overseas transaction fees?

The following bank cards are available:

• International students: Bank of China Australia Travel Card, ICBC International Student Card
• New immigrants: ANZ Travel Card, NAB Classic Banking
• Short-term travelers: Up Bank (supports instant account opening with Apple Pay)

Q4: What are the ways to pay tips?

At fine dining restaurants, when paying the bill:

1. Tell the waiter to increase the tip amount when swiping the card
2. Use cash separately in the bill folder
3. Add via mobile payment note

Summary of Australian Encyclopedia Assistant: As a leading country in global payment innovation, Australia has formed a payment ecosystem of "bank cards as the main payment method, mobile payment as the rising trend, and cash as the supplementary payment method". It is recommended that visitors to Australia apply for a local debit card + keep an international credit card combination, and install payment tools such as PayPal and Afterpay on their mobile phones in advance. Pay special attention to keeping shopping receipts. According to the Australian Consumer Law, even discounted products can enjoy return and exchange services.

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