Major change coming to Woolworths as supermarket reduces cash withdrawal

Woolworths is set to make a major change at the checkout this week which is expected to inconvenience customers.

Woolworths customers will not be able to get as much cash out from the supermarket as it reduces withdrawal limits.

Cash withdrawals will be cut by more than half from $500 to $200 this week, a move that Woolworths said is due to customer demand.

“From mid September, we will be reducing the limit of cash customers can withdraw from our stores per transaction,” a Woolworths spokesperson said.

“This is due to the lack of cash being used in transactions, with the majority of customers opting for card-only transactions such as Everyday Pay.”

Customers will only be able to get $200 in cash out from Woolworths after this week. Picture: NCA NewsWire / Christian Gilles

The supermarket giant flagged it will move away from allowing cash withdrawals without a purchase.

By the end of October, shoppers will need to make a purchase before withdrawing cash.

The move comes as dozens of bank branches close and ATMs become more difficult to track down.

Woolworths says it will continue to allow customers to withdraw cash despite the major cost of keeping cash on premises.

“We understand cash remains an important payment option for some customer,” the supermarket said in a statement.

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