A major cash switch is arriving at Woolworths supermarkets this week

Woolworths is reducing its cash withdrawal limit from $500 to $200, bringing it in line with limits set by other retailers.

Currently, shoppers can withdraw cash in-store without having to make a purchase first. However, this is also being changed.

Starting in late October, shoppers will have to make a purchase before withdrawing cash.

Announcing the changes, a Woolworths spokesperson told Daily Mail Australia they would come into effect in mid-September

“We will be reducing the cap on cash customers can withdraw per transaction in our stores,” a Woolworths spokesperson said.

Woolworths is reducing its cash withdrawal limit from $500 to $200, bringing it in line with limits set by other retailers

“This is due to the lack of cash in transactions and the majority of customers are opting for card-only transactions.”

“We understand that cash remains an important payment option for some customers.”

“That’s why we continue to offer the option to withdraw cash.”

There are no minimum purchase requirements to withdraw cash.

Whether you’re buying a leg of ham or a pack of gum, you still have the option to withdraw any amount of cash at the store.

The move follows a backlash from customers to rival supermarket giant Coles opening a branch where self-service checkouts will not accept cash.

The Brisbane store has a number of self-service checkouts labeled “Card Only”.

Starting in late October, shoppers will have to make a purchase before withdrawing cash.

A video of the cashless machines was posted on social media.

“There was the help desk. “They took cash, nothing else,” Scott Russell, who recorded the video, told Daily Mail Australia.

Those who commented on the Instagram video were not impressed.

“Everyone has to use cash only.” “If they don’t accept cash then don’t buy from them,” said one.

“Everyone has to leave the groceries at the checkout and walk away,” said another.

A third noted that supermarkets were cutting jobs.

“It’s bad enough that companies like Coles have increased prices. I know they are cutting employee hours, but now more self checkouts… fewer jobs.”

A Coles spokesman said there were no cashless stores yet, although paying by card had become the preferred transaction.

“There are still options for our customers to pay cash in all of our branches,” the spokesman said.

In 2021, Woolworths abandoned a trial of cashless supermarkets, which were unpopular with many shoppers.

The trial, which included 14 “Metro” stores in Melbourne, Sydney and Brisbane, was sold as a way to make shopping as “seamless as possible” for busy city center customers.

However, it was met with fierce resistance.

“I refuse to shop at any of your card-only stores,” one customer wrote on Woolworths’ Facebook page.

“Cash is legal tender and I do not support the cash ban and will be taking my money elsewhere.”

Ian Henschke, general counsel for National Seniors Australia, described the process as “a form of age discrimination” as many older customers still prefer cash.

Woolworths Metro general manager Justin Nolan admitted the process was outdated.

“While almost all Metro customers choose to pay by card, for those who don’t, cash remains incredibly important for a whole host of reasons that weren’t entirely clear to us,” he said.

“Based on feedback from our customers, we can see that we have exceeded the community’s current cash expectations and will be ending the trial.”

Australia is rapidly becoming a cashless society, forcing people to use bank cards that record all expenses.

The Reserve Bank estimated that just 13 percent of transactions were in cash at the end of 2022, halving in just three years since the start of the Covid pandemic.

A big advantage of using cash only is that it avoids fees.

When a customer uses Tap-and-Go, banks charge a fee that ranges between 1.1% and 2% of the purchase price, while EFTPOS charges a maximum fee of 0.5%.

Australian bank branches are increasingly restricting cash withdrawals. Customers are now advised to call ahead if they want a large sum from the cashier.

ANZ and Commonwealth Bank NAB have announced they will no longer allow over-the-counter cash withdrawals at some of their branches, as more banking transactions are conducted online than with cash.