Supermarket Sleuths: Supermarket checkout option that is becoming increasingly difficult

With bank branches closing up shop and taking their ATMs with them, Aussie shoppers continue to request cash out at supermarket checkouts.

But recent checkout changes means this isn't as easy as it used to be.

In this week's Supermarket Sleuths, we'll take you through recent changes, the benefits of withdrawing cash at supermarkets, what the future of cash transactions means for this easy and convenient checkout option and why it's different at Aldi.

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How it works

Cash out can only be requested at cash self-service checkouts and staffed checkouts. Customers cannot request cash out at card-only checkouts as there is no cash stored in them.

This is despite customers still asking if they can access cash withdrawals at card-only checkouts, as one exasperated Woolies worker recently shared on Reddit.

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The Woolworths staffer shared a photo of a card-only checkout along with the caption: "Hey guys, can I get cash out of this one? I swear I get that question at least half a dozen times a shift."

So once and for all, no, you cannot get cash out at card-only checkouts at Woolworths, Coles, and Aldi.

You also need your debit or credit card to get cash out, and you will need to use your PIN, even if the transaction amount, including the requested cash amount, comes to under $100.

Cash can be requested regardless of the transaction amount. There is no minimum spend required either.

With fewer cash checkouts in supermarkets, that means customers wanting to access cash are left to wait for one to be free.

While I was waiting in line, a Coles staffer did say I could go to the service desk to purchase my groceries and access cash out if needed.

A recent Reddit chat highlighted the lengths some customers will go to in order to access cash out in supermarkets, making the smallest of purchases at Aldi.

"Usually people buy a trolly token or some gum," one worker said in the thread.

Another worker asked customers to "please be considerate and ask your cashier beforehand.".

"As others have said most of the time you will be told that the limit is $300 but sometimes tills may be more empty than usual making $300 difficult and your cashier will appreciate you choosing a lower value.

"The amount of times I've experienced somebody cashing out a ridiculous amount like $500 without asking me prior... is infuriating."

What the supermarkets say

The supermarkets understand that some shoppers still like using cash and wish to access cash out in their stores. However, the amount of cash a customer can request has been reduced from the previous amount of $500 just two years ago.

At Coles, customers can request $20 to $200 cash out per transaction.

"We understand cash availability and usage continues to be a preference for some customers, and we have no plans to change this policy and are committed to offering payment choice for our customers," a Coles spokesperson told 9honey Money.

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Woolies customers can also request $20 to $200.

Aldi allows customers to take out the most cash, offering customers the choice of $10 and $300 when purchasing in-store, with at least one item over $0.05 processed through the register.

As Aldi doesn't offer cash self-service checkouts, this can only be done at staffed checkouts.

Coles, Woolworths, and Aldi declined to share data on current customer cash withdrawals and plans for cash options at the supermarkets.

The benefits

While our need for cash has dwindled, there are still occasions when we need it, and by withdrawing it at the supermarket, customers avoid the fees that are attached to using our non-bank ATMs.

It is also convenient. Two birds, one stone.

Also, many Australian families complete their weekly grocery shop at more than one store, with some still topping up their shop at specialty stores such as butchers, fruit and vegetable stores, and other retailers.

While the major retailers are focused on fewer cash transactions, smaller retailers are more accepting of them.

Then there are farmers' markets and similar food retailers who don't have the best set-ups to accept card payments, making cash the easier and sometimes only option.

The future of cash in Australia

Jason Bryce, who runs Australian cash advocacy group Cash Welcome, says "supermarkets are now under some pressure to do more than just accept cash, they must support the cash system and relaxing their EFTPOS cash out rules".

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He says, contrary to the belief that cash transactions are in decline, there is "a new all-time record set for the amount of cash in circulation".

While Australian businesses don't legally have to accept cash, Bryce says there needs to be "a cash mandate that covers all retailers".

He feels the Albanese government's proposed cash mandate that Australian businesses accept cash when selling essential items, with exemptions for small businesses, is "not strong enough".

A consultation paper to gather insights and feedback on a cash acceptance mandate that will become effective on January 1, 2026.

'Cash is expensive for businesses to handle'

Today Money Expert Joel Gibson previously told 9honey Money supermarkets are moving away from cash transactions because it is the most expensive form of payment for a business, "because it has to be stored securely and transported".

"Even if that means that it's inconveniencing some of their customers, they're all moving increasingly away from cash, whether we like it or not," he said.

Gibson said supermarkets are not legally required to accept cash, nor are any Australian businesses.

"You would think that, being a legal tender, it was compulsory for a business to accept cash," he said.

"But it's not that simple, unfortunately. The law doesn't force them to do so.

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"That's why some businesses have already gone completely cashless."

Gibson said while cash will still be around "for some time to come", we are also seeing "some businesses draw a line through cash altogether now, which is the beginning, I think, of that transition to a cashless society".

While this is good for efficiency, there are downsides to a cashless society, Gibson explains, one of which is the fact that customers "spend more consciously when they spend cash and probably spend less".

"So it's easier to stay on top of your spending when you're spending cash," he said.

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