Store credit cards are known as co-branded cards offered by grocery or department stores. Backed by a financial institution which supplies and manages the credit cards on behalf of the store.

A combination of high reward points and ongoing discounts or benefits unique to the store are what make store credit cards a different and attractive option. 

This option may be a no brainer for big families or people who purchase a large quantity of groceries or white goods. And if your shopping trolley or cart is mostly filled with the stores branded products, then typically you get extra rewards. 

Store credit cards come in different types such as rewards, low rates, low annual fees and with common promotions you'd find in the market. 

The common store credit cards in Australia

There are four common store credit cards that are available in Australia. These are grocery chains Woolworths, Coles and department chains David Jones and Myers. All supplying different credit card types to suit a range of customers. 

In Australia there are a very few store credit cards, whereas in countries like Canada and USA is several store or co-branded cards. For example, we're missing out on Amazon or Apple credit cards not yet available here in Australia. 

On our site Kredmo, you can simply compare store credit cards by multi-selecting the store providers with types rewards, low interest rate, no annual fee and more.  


Differences between a store credit card and a bank credit card

A store credit card is similar to any standard credit card you find at a bank. Where they differ is mostly in the features and promotions offered that are unique to the store. 

Stores generally offer the customer to redeem cashback or credits to their store in exchange for reward points. For example, Woolworths provides $10 off shopping for every 4000 points collected and a 10% discount each month off on one customer's shopping trip.

Whereas a standard credit card can offer the same redemptions but to a broader-based of partners. 

A standard rewards credit card with a bank will usually offer points for spending, but not necessarily a regular discount on purchases or cash/credit back. Banks tend to provide more broad benefits like purchase protection, refund protection and extended warranty, though some stores may also provide too. 

Frequent flyer point credit cards such as those Qantas or Velocity however do operate more like a store credit card. Offering benefits specific to traveling and discounts to loyal customers who spend with them. 

Store credit cards don’t offer premium credit cards. If you’re looking for a credit card with a vast amount of benefits, such as discounts at hotels, many airport perks than you won’t find this level in-store cards. 

Annual fees tend to start from low to medium in cost. A reward points credit card can average annuals fee between $200 to $300 p.a. While the average annual fee for a store credit card is approximately $100 p.a. 


Are store credit cards easier to get approved?

Yes, sometimes it can be easier to get approved.

It depends on the contractual agreement between the store and the provider. In some contracts the bank will agree to maintain a minimum approval rate for a store's credit card applications. Which is why at times if may prove easier to get approved. 

However, if a store credit card is generally easier to get approved, this can usually mean that lower limits are given. Overtime if a customer's repayment history is very good, it can be possible to get a credit limit increase. 


Can I use my store credit card outside the store?

Yes, you can use it outside the store. 

Though they are store branded these credit cards its still part of the payment network. Across the well-known payment networks, Visa, Mastercard or American Express. 

The only downside to using it outside the store is getting fewer points are earned on those purchases. But at least you have the flexibility to use the card as you wish as long as the payment network supports it. 


Mobile payment App options

Mobile payment applications are widely available in Australia. Stores do generally have popular mobile payment apps compatible with their credit cards. 

For grocery stores, currently Coles credit cards are compatible with Coles Mobile Wallet, Apple Pay and Samsung Pay. But Woolworths credit cards are useable with Apple Pay.

And for the departments, David Jones credit cards can be used with Apple Pay, Samsung Pay and Google Pay. While Myers are compatible with Apple Pay and Google Pay.  


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