Store Credit Cards

What is a store card?

Store cards give you benefits when you shop with a particular brand or retailer. For example, you could earn a higher rate of points per $1 for spending with an associated store, or enjoy complimentary shipping, exclusive sales and long interest-free offers.

A lot of store cards also have the retailer's branding printed on the physical card but are issued by a bank or other financial institution. For example, David Jones credit cards are issued by American Express and Kogan credit cards are issued by Citigroup.

Store cards in Australia

There are 5 store credit card brands in Australia, covering supermarkets, department stores and online retailers:

• Coles
• David Jones
• Myer (not currently taking new applications)
• Kogan
• Woolworths (not currently taking new applications)

Right now, you can only apply for a store card from Coles, David Jones and Kogan.

New applications for both Woolworths and Myer credit cards have been "temporarily paused" since the start of the coronavirus pandemic in 2020. This was a decision made by Macquarie Bank, which is the issuer of both brands.

What benefits do store credit cards offer?

Store credit cards usually offer a range of perks you can enjoy when you shop with the brand, or elsewhere. These features vary between cards but often include:

• Reward points

Most store cards in Australia offer points per $1 spent on eligible purchases. Generally, you’ll earn the highest amount of points for spending with the store and a lower amount for spending everywhere else.

• VIP offers

Some store cards give you access to exclusive events, offers and sales. The David Jones American Express, for example, offers card member shopping events, Instant Rewards such as savings or gifts for specific purchases, and complimentary gift wrapping for purchases made in-store or online with David Jones.

• Shopping discounts

You can often get savings on your shopping with the store or associated brands when you use a store card to pay for purchases. For example, with a Woolworths credit card you can get 10% off your first shop in-store or online at Woolworths on a selected weekend each month by scanning the barcode on the back of your credit card and paying with it. David Jones and Myer credit cards may also offer member discounts at various times throughout the year.

• Complimentary delivery

If you shop online, you could enjoy complimentary delivery options with the brand that’s linked to your store card. For instance, David Jones American Express Platinum offers complimentary priority delivery for eligible items purchased in store at David Jones.

• Flexible payment plans

Credit cards may also offer you different payment options for purchases you make with the linked brand. Currently, David Jones offer this type of benefit, with some options including:

• • Up to 1 year interest-free with no deposit when you spend at least $500 on your card in one transaction across all departments, in-store or online, at David Jones.
  • Up to 5 years interest-free with no deposit when you spend $1,000 or more on your card in one transaction, across all departments in-store or online at David Jones.
  • 3 Months Pay Later for up to 3 months when you spend $50 or more on your card across all departments in-store or online at David Jones.

• Other benefits

Depending on the store card you choose, you could also enjoy perks such as complimentary travel insurance, purchase insurance and airport lounge access.

Comparison: Store card rewards, other benefits and features

To give you an idea of the potential value you can get from a store credit card, the table below includes details of reward point earn rates, other benefits and annual fees offered on a range of store cards you can get in Australia.

How to compare store credit cards

As well as comparing the benefits of a store card, make sure you consider the following features so you can find one that suits your needs:

• Card acceptance

Make sure the card is an American Express, Mastercard or Visa option if you want to be able to use it outside the associated store.

• Annual fee

Most store credit cards in Australia have an annual fee, which could be as low as $69 or as high as $295 depending on the card.

• Interest rates

Store credit card interest rates typically range from 19.99% p.a. to 20.74% p.a. (variable) for purchases but could be higher for cash advances.

• Payment plan rates and fees

If your store card offers long-term payment plans for in-store purchases, make sure you check for establishment and maintenance fees.

For example, the interest-free instalment payment options available with a David Jones card may attract an establishment fee and a monthly account-keeping fee. There are also interest rates that may apply if you don’t pay the balance off by the end of the payment plan period.

• Balance transfer

If you have existing card debt you’d like to transfer to a new store credit card, you may be able to get a promotional 0% interest rate if you request the transfer at the time of your application.

Just remember to check the standard rate that will apply to the debt if you don’t pay it off during the introductory period.

What to avoid with a retail credit card

• Spending just to earn points

Justifying an unnecessary purchase on the basis that you have earned some points is poor thinking. Not only could you end up with a purchase of little value, but you may take your balance into an area that you cannot pay off in full.

• Losing track of your spending

If you have any doubts about your ability to manage a larger credit card bill, or to balance any sudden large shift from cash to plastic, then putting your everyday bills onto your retail rewards credit card would be unwise. Your balance needs to be paid off in full each month for your points to be of some benefit. If you end up paying interest, you have lost the game.

• Making cash transactions

These include cash withdrawals from ATMs, cashback at a cash register, traveler's cheques and foreign currency, and gambling transactions. These will not earn you points, but they will earn your a higher rate of interest from the moment they are made, as well as a cash advance fee.

Frequently asked questions

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