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Credit Card Vs EFTPOS For Day To Day Transactions?

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Mary Holm
Mary Holm


I am amazed at people who still use EFTPOS cards for everyday transactions.

I maintain a Visa card with a P.I.N. that I use exactly like an EFTPOS card, and the most it costs me is $25 per year.

I use it to buy everything from my morning coffee to supermarket shopping, with the added advantage I can see at a glance where my money has gone and I only need one card instead of two.

The payments to Visa are linked to my cheque account that has an overdraft limit, and the Visa card is paid off on the due date without any interest.

If my account does trickle over into overdraft the interest on the overdraft is about 12 per cent as opposed to the 19 per cent charged by most credit card companies.


Mary Holm: Good thinking. The only drawback is for those who aren't disciplined about their credit card spending. At least with EFTPOS you can't spend money you don't have.

Still, even those people would be better off paying 12 per cent than 19 per cent.

Come to think of it, I operate similarly to you, almost never using EFTPOS - except that I use good old-fashioned cash for most purchases under $20.

Remember cash, you young ones? Those oblongs of paper and metal discs? You pay no fees for using cash, and it speeds up transactions.

Sure carrying coins can weigh you down a bit. But there's good news on that front. From July 31 the Reserve Bank will introduce lighter 50, 20 and 10-cent coins.


Mary Holm is the author of bestselling books on KiwiSaver and personal finance. She is also a highly praised seminar presenter. Her written advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following that advice. 

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