Woolworths, Coles, Aldi, Harris Farm or Amazon - who has the best credit card?

  • Before you read any further, some of these cards are great value (in our opinion) that are available now. We also made some of them up.

  • Buying groceries is something we all do, so should you be maximising this spend through a rewards supermarket credit card? 

  • Deep-dive into all you need to know about the credit cards currently offered by our two largest supermarket chains, Woolworths and Coles. 

  • Get our take on what a credit card could look like from some other retail chains including Aldi, Haris Farm and Amazon.

Woolworths – Everyday Platinum Credit Card

Woolworths

Marketing tagline: The credit card that keeps giving back
Card issued by: Macquarie Bank
Target market: Everyday Aussies 
Real or made-up: Yes, it’s a real card

The Woolworths Everyday Platinum Credit Card has a rewards program that is designed to keep you shopping at Woolworths. If you are chasing discounts on your everyday purchases, this card can help you out.

One of the biggest perks of the Woolworths credit card is that you get 10% off one Woolworths shop every month, saving you up to $50 each month. That's up to $600 annually!

For the savvy shoppers out there, this card helps you collect points quickly. Every four months, they will be automatically converted to shopping cards, with 4000 Credit Card points giving you a $20 Shopping Card.

Earn your Credit Card points easily just by doing your daily shopping: 

  •  3 Credit Card points per $1 spent on purchases of Woolworths Select and Woolworths brand products
  •  2 Credit Card points per $1 spent on purchases at Woolworths Group stores 
  •  1 Credit Card point per $1 spent elsewhere, where Visa is accepted

The Credit Card Rewards Program is separate from the Woolworths Rewards program. On the credit card, you earn points for a shopping card. Which is additional to the Woolworths Rewards points, so being on both programs means you're essentially collecting points in two different ways, speeding up the amount of points you can earn.

Currently, Woolworths is offering a $0 annual fee on the card for the first year then $49 ongoing. Plus, for a limited time, you'll also get a bonus $50 Woolworths eGift Card if you spend over $150 at Woolworths every month for the first 3 months. If you pay your monthly statement in full and on time, you also get an interest-free grace period of 55 days.

Finally, in addition to boosting your chance to collect Woolworths Rewards points, the card offers a laundry list of added benefits.

Our verdict

There’s no doubt that the Woolworths Everyday Platinum Credit Card appeals to people who already do most of their grocery shopping at Woolworths Group stores. The unique benefit of the Woolworths credit card is that it rewards you with 10% off your Woolworths shop once a month ongoing. But are there enough benefits to seduce Coles diehards? Only they can decide.

What do the users say?

“I have four other credit cards but this is my favourite one to use. Although there is a fee (in the second year), because we do most of our shopping at Woolies the rewards gift cards we get in return for using the card add up to much more than the annual fee. Highly recommended” – J.

Coles – No Annual Fee Mastercard

Coles Supermarket

Marketing tagline: Credit cards packed with value
Card issued by: Citibank
Target market: Everyday Aussies
Real or made-up: Yes, it’s a real card

Coles No Annual Fee Mastercard is a card you can access both physically and digitally, using the Coles Wallet.

One major perk of this card, as its name states, is that you never have to pay an annual fee.

This is a card for those who like to pay their bills on time. If you pay your monthly statement in full and on time, right now Coles is offering its customers an interest-free grace period of 55 days, which is quite a nice little feature.

The major win with this card, for those of us who are members of the Flybuys rewards program (an estimated 10-million Aussies), is that this card allows you to earn points 50% faster (in most cases) without costing you a cent.

Using this card, which also doubles as your Flybuys card, you earn points for every eligible spend, which in time you can redeem for a discount on your Coles shop.

This card is most effective when used with Wesfarmers brands, including Coles, Kmart, Liquorland, First Choice Liquor, Target, Coles Express, Budget, AGL, or Medibank. Find out more about redeeming Flybuys points and added benefits of the card here.

For added flexibility, all reward options come with a Points + Pay feature, in case you don’t have quite enough points for your chosen redemption. Winning.

Coles is offering a 0% balance transfer rate, but only for 6 months, and then unpaid balances become subject to the 19.99% p.a. variable interest rate.

Something else we love about this card is that it provides security and fraud protection through the Coles Shield and Mastercard Zero Liability Guarantee, so you can enjoy that little bit extra peace of mind.

A little tidbit for the savvy online shopper is that with this card if you spend $100 or more (excluding tobacco products) at Coles Online, your order will be absolutely free of delivery charges, which Coles say are normally between $4 and $18.

Our verdict

Coles have cleverly positioned this card to compete with the other fee-free cards delivering either loyalty points or other benefits.

The Coles No Annual Fee Mastercard is ideal for any regular Coles, Kmart or Target shopper who does not intend to run an unpaid purchase balance, and who wants simple rewards, groceries delivered free, and all for zero, zip, zilch, nada.

What do the users say?

“This is one of the very few cards I could find with no fee and also a rewards program. As a regular Coles shopper, this card is great for me because I can earn Flybuys points from the card in addition to the Flybuys points I already earn” – Ross.

Aldi – The No Frills Card

ALDI supermarket

Marketing tagline: No pointless points
Card potentially issued by: Latitude Financial 
Target market: Savvy, budget-conscious Australians
Real or made-up: No, we made this one up—just for fun

With Aldi, it was hard to pinpoint who a card issuer might be. However, based on their international link, we thought Latitude Finance, who specialise in cards with no international transaction fees, would be the best fit.

Right away, we’d suggest the card would be both a physical and digital card. Aldi is all about fast service—experience their checkouts and you’ll know what I mean—so the speed of using a digital card would certainly fit with their model.

What would the numbers look like?

We all know that if you are shopping at Aldi you're bargain hunting. Therefore, we suggest that the Aldi credit card would have no annual fee.

Like most no fee cards, there would likely be a higher interest rate per annum. While it might be waived for the first year or so, pending a balance transfer, we’d suggest this would probably come in at around 20% p.a.

What Aldi perks might you get with an Aldi branded credit card?

Today, Aldi has no customer service phone line, and its no frills and no rewards policies have been identified as impeding growth in a market dominated by incumbents like Woolworths, Coles, and even IGA.

Aldi has a strictly anti-loyalty program approach, as is obvious from its latest 'pointless points' campaign. However, talking an Aldi rewards approach, we see Aldi focusing on some of their Aldi Special Buy items.

One idea we had around ways that Aldi cardholders could benefit is by being invited to access ‘Special Buy’ items ahead of the general public. We thought that Aldi might sign The No Frills Card users up to members-only shopping experiences, in which they are invited into Aldi stores out of hours, or ahead of the general public when ‘Special Buy’ items are released. Just imagine not having to line up from 5am on a Saturday ‘Special Buys’ morning when Aldi is launching some new ski gear because you’ve already purchased it! Wouldn’t that be nice?

Our verdict

What’s the likelihood Aldi will launch a credit card in Australia?

Not very likely.

If they ever did, and offered some benefits for loyal customers, we think savvy budget shoppers would be all over it.

Harris Farm – The Green Visa

Harris Farm website

Marketing tagline: The card that has value with values
Card potentially issued by: Bendigo Bank
Target market: Health-conscious & environmental consumers
Real or made-up: Nope, we made this one up too

Before we proceed, we think it is important to mention up front that by using our imaginary Harris Farm Credit Card, you would definitely be donating to help save our planet. There has to be some sort of charitable link to an environmental charity with a Harris Farm card, or even multiple charities of your choice.

Focusing on this charity angle, we suggest the card issuer needs to be a financial institution that people trust, and one whose values align with those of Harris Farm, so we are suggesting that as Australia’s most trusted bank, and third most trusted brand in Australia, Bendigo Bank fits the bill.

Okay, now that’s out of the way, we have the health-conscious, middle-class, family-focused shopper on our radar—a market that will help define what a Harris Farm credit card might look like.

What would the numbers look like?

Considering the target demographic, links to charity, as well as perks, we see this as having an annual fee that sits somewhere around $55. Of course, if you shop in stores and spend over $5,000 per annum, this fee would be waived. Again, aligning with some of the other grocery-branded credit cards, we guesstimate interest rates on a Harris Farm credit card would sit around 20% per annum.

As an added benefit to our planet, this would likely be a totally digital card—no plastic required. However, if they did go down the physical card route, the cards would have to be made from 100% recycled plastic.

What would the card perks look like?

This card is designed for those who want to give back, so some of the rewards would be charitable, as mentioned earlier.

This might include a donation to Clean Up Australia Day, helping to look after our oceans and the Great Barrier Reef, or giving back to the local farmer associations.

Other perks might include:

  • $100 in-store gift card on sign-up
  • For every $100 spent $1 goes to a charity of your choosing (from a list provided by Harris Farm)
  • Automatic Gold Customer status meaning you get free delivery on all orders over $100
  • Health, home and pet insurance discounts with Bupa, or another environmentally conscious healthcare provider

Our verdict

In all honesty, out of every outlet we’ve mentioned in this piece, we see this as the least likely to happen. However, it would be great to see a card that gives back, so maybe there is something to this.

Amazon – Amazon Prime Rewards Card

Amazon Alexa

Marketing tagline: Earn rewards everywhere you shop 
Card potentially issued by: Citibank
Target market: Tech savvy, online shoppers, 25-35 year olds
Real or made-up: It does exist, just not in Australia, so yeah we made it up

In a previous article, we discussed the possibility of Amazon launching a credit card in Australia, and looked at some of its international offerings as part of this.

Being Amazon, we think this would definitely be available as a virtual card. Our verdict was that if Amazon was to offer a rewards credit card to its Australian customer, it might be hard to beat, and could likely attract a host of savvy spenders.

Looking at the international cards, it is unlikely that an Amazon card launched in Australia would incur an annual fee, which is pretty appealing. Depending on rewards, the purchase rate would likely fall between 16 to 20%.

Competition would be a major factor on Amazon entering the credit card market in Australia, and we know that if the retail giant did want to enter Australia with a card, the big four banks, along with a host of other smaller players, would certainly have something to say.

Some new or unique features that the Amazon card might bring to Australia could include a seamless connection to Alexa, which could, to some extent at least, replace internet banking and app usage. Calling a customer service number to speak to a human might only happen on rare occasions, perhaps never at all.

Imagine saying to Alexa:

  • “Alexa, how much do I owe on my card right now?”
  • “Alexa, what was that weird charge on my card?”
  • “Alexa, pay my credit card bill.”
  • “Alexa, how many Amazon Points do I have right now?”

Another unique feature the card might offer would be something similar to Amazon Prime’s Outfit Compare, which we will dub, ‘Purchase Compare’. We see this as something in which an Amazon cardholder could log into their account, advising the cost of something they are planning to purchase, and within a minute, a shopping expert will review the cost of what you are planning to buy, and advise if there is a better price available elsewhere. This could help you make a better decision on what to buy. Done well, this would be a game-changing feature.

One other very cool feature we think Amazon might offer—and this one would really change the game—is immediate access to a digital card upon approval.

Imagine this. The customer starts their journey on a comparison site (Credit Card Compare, naturally), applies online and gets an approval decision within 60 seconds. Then subject to a confirmation email or verification code sent to your smartphone, your new card will be made available to set up in your digital wallet of choice (e.g. Apple Pay or Samsung Pay) ready to be used. Your physical card would arrive in the mail a few days later ready for conventional use.

Our verdict

While we think Australian consumers would welcome an Amazon credit card, we aren’t holding our breath for anything in the near future.

What do you think? Made up or real, if they were all available on the market which supermarket credit card would you choose?