PC updates Change in terms and conditions: daily withdrawal limit for external transfers As a security measure and to further protect members' funds, from 1 February 2012 Police Credit is reducing the daily withdrawal limit for external transfers from $10,000 to $5,000. This means when you are using pc.easynet or Rapid Response to transfer funds to accounts held outside of Police Credit, the new daily limit is $5,000. There is no change to withdrawal limits for transfers between Police Credit accounts. If you need to transfer a larger sum to an account at another bank or credit union, simply call Member Response on 13 63 73 for assistance. Government deposit guaranteePolice Credit is committed to ensuring the security of members' money. Like the major banks, Police Credit is regulated by Australian Prudential Regulation Authority (APRA). Our prudent financial management means that we represent a safe haven for our members. Our credit quality is exceptional and we have no exposure to investments overseas. Police Credit is prudently managed at all times and is well capitalised, liquid and profitable.
Police Credit members are our priority with our key responsibility being to help our members to achieve a more secure financial future. Government deposit guarantee update (as at September 2011)- On 12 October 2008 the Prime Minister announced a new scheme to guarantee all deposits held in credits unions, building societies and banks in Australia.
- The Financial Claim Scheme, with its $1 million cap, was an emergency response to the global financial crisis. Guaranteeing repayment of depositors' funds in the extremely unlikely event that any banking institution failed, the Government said at that time it would review the $1 million cap in three years – in October 2011.
- With Australia now having one of the strongest banking sector in the world, the Government has decided the emergency response is no longer required and that a permanent cap of $250,000 is the appropriate level for the Financial Claims Scheme in Australia.
- The new cap brings Australia into line with similar guarantee schemes overseas.
How does this affect my deposits?- The scheme applies in exactly the same way to all credit unions, building societies and banks. From 1 February 2012, depositors will benefit from the comfort of the $250,000 guarantee.
- Transitional arrangements are in place for all term deposits made prior to 10 September 2011, and for new deposits established between 10 September 2011 and 1 February 2012.
What deposits are covered by the Financial Claims Scheme?
The Financial Claims Scheme applies to a wide range of deposits held with credit unions, building societies and banks, including the following: - At-call accounts
- Term deposits
- Current accounts
- Cheque accounts
- Debit card accounts
- Transactions accounts
- Personal basic accounts
- Cash management accounts
- Farm management deposits
- Pensioner deeming accounts
- Mortgage offset accounts, either 100 per cent or partial offset, that are separate deposit accounts
- Trustee accounts
- Retirement Savings Accounts
- First home saver accounts that are deposit accounts
The Financial Claims Scheme has extra protections in place to ensure that your deposits are safe with any regulated banking institution – any bank, credit union or building society in Australia. The government guarantee is just an extra reassurance on top of existing rules.
I have an existing deposit with my credit union, building society or mutual bank – how will the cap apply to my deposit?
Term deposits that existed at 10 September 2011 will continue to be guaranteed up to $1 million until the earlier of: - The date of maturity of the term deposit
- 31 December 2012
If a term deposit that was existing at 10 September 2011 is rolled over before 1 February 2012, then the deposit will be guaranteed as follows: - Up to 1 February 2012 – $1 million
- From 1 February 2012 – $250,000
If a term deposit existing at 10 September 2011 matures between 1 February and 31 December 2012, the cap will apply to the deposit as follows: - Up to maturity – $1 million
- If rolled over post 1 February 2012 – $250,000 from roll-over date
All other deposits, and term deposits made after 10 September 2011, are covered as follows: - Up to 1 February 2012 – $1 million
- From 1 February 2012 – $250,000
For more information, please refer to the Government Deposit Guarantee Fact Sheet.
I am thinking of a term deposit with a credit union, building society or mutual bank. Will it be covered by the FCS? Are you safe?
Australia has one of the strongest banking regulatory system in the world – all credit unions, building societies and banks meet exceptionally high standards set down by the regulator, APRA. Deposits in all Australia's credit unions, building societies and banks are safe. All deposits made after 10 September 2011 are guaranteed as follows: - Up to 1 February 2012 – $1 million
- From 1 February 2012 – $250,000.
How does this affect credit unions and building societies?- Australian credit unions and mutual building societies are safe and secure. The same measures of protection and law that apply to the banks also apply to credit unions and mutual building societies.
- The Government's new deposit guarantee applies in exactly the same way to deposits with credit unions, banks and building societies – all are covered by the Financial Claim Scheme backing of the Australian Government.
- Savings with a credit union or mutual building society are backed not only by our strong performance and member-focus, but also by the Government's guarantee.
Strict Australian regulation protects your deposits.- Credit unions and building societies meet the same strict, legally-enforceable standards as banks, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA).
- The Australian prudential regulatory regime is designed to ensure that depositors do not lose money. APRA’s strict rules on safety and capital continue to apply to all banks, building societies and credit unions to the same high standards.
Credit unions and mutual building societies – a safe haven- As mutuals, we are owned by our members. Our focus is on your interests, and we are conservative and careful managers of our members’ money.
- Credit unions and mutual building societies have the highest level of capital in the banking system: 16.5% on average for credit unions and 14.5% for building societies, compared to the already high 10.6% of banks.
- We fund more than 80% of our lending from household deposits, and therefore have very little exposure to the uncertain wholesale markets.
- Collectively, credit unions and mutual building societies have combined assets over $65 billion, and more than four and a half million members nation-wide.
- This demonstrates our scale and strength in the Australian banking system, and our focus on conservative, prudent management of our members’ money.
For more information, please see the following relevant articles: > Credit unions and mutual building societies: Growing from Strength to Strength
> Credit Unions, Building Societies have no exposure to toxic US loans
If you have any questions or require any further information, please call Member Response on 13 63 73. > Back to top Visa Small Ticket Transaction ServiceJune 2010
The Visa small ticket transaction service makes low value card acceptance even faster and easier for members by eliminating the need to sign or enter a PIN when making a qualified transaction of A$35 or less.
Current categories eligible for the program in Australia including:
- Taxis
- Fast food restaurants
- Newsstands
- Car washes
- Cinemas
- Dry cleaners
- Restaurants
- Parking lots
- Convenience stores
- Video rental stores
Can cardholders choose not to use it for purchases below A$35?
If a merchant has implemented this service, members will not be prompted to enter a PIN or sign for these small ticket transactions.
Will the merchant need to provide a receipt?
To further increase transaction speeds, merchants do not need to provide a transaction receipt unless requested by the cardholder and the receipt may contain significantly less data, reducing merchant paper and environmental costs.
Will cardholders lose their normal Visa card protection and be exposed to increased risk?
No, Visa small ticket transactions have the same security as normal transactions. Each transaction is authorised online, hence subject to checking as in the case of a normal Visa card transaction.
The service is available at merchants where the goods and services sold generally have little to nil resale value which makes fraud less likely. Data following the rollout in the U.S. has confirmed that there has been no incremental increase in fraud or chargebacks for small ticket transactions.
Members can make small ticket transactions with any Police Credit Visa credit or debit card.
For more information contact Police Credit on 13 63 73 or visit a branch.
> Back to top
Changes to available payment options at Safeway/Woolworths storesPlease note a recent media announcement from Woolworths advised that from 15 April 2010, all customers using a Visa debit card will be required to select the ‘Savings’ button. Your Visa debit card is the card that accesses your Multipack savings or Overdraft and has the word DEBIT printed on the card – you may be using your own funds or your overdraft. We understand that Woolworths will, from 15 April 2010, require all VISA DEBIT cardholders to press ‘Savings’ and enter their PIN – pressing ‘Credit’ (with either PIN or a signature) will no longer be available for use with a debit card.
Important Note: If you are using your PC Silver or Gold credit card you will notice no change, selecting the ‘Credit’ payment option will still be available to credit card users.
If you are accessing your PC Line of Credit via your PC Visa debit card (pressing cheque) again you will notice no change. If you currently shop regularly at Woolworths’ stores then provided you know your PIN you should not be inconvenienced, the transaction will be processed from your account in the usual way. You will need to be mindful that when ‘Savings’ is pressed, the transaction becomes an EFTPoS transaction and as a Police Credit debit card user, you have 20 fee free EFTPoS transactions each month. Pressing the ‘Credit’ button provides you with unlimited fee free transactions. See 'How to bank fee free' brochure for more information about your transaction limits. To minimise the impact of this change on how you do your day-to-day banking we suggest the following:
- Continue to use the ‘Credit’ button at all stores not owned by Woolworths – see list of Woolworths owned stores below
- When getting cash out at retailers, press ‘Savings’ as you do now – you will notice no change
- Consider applying for a Police Credit credit card (PC Silver credit card has no annual fee), and pay the balance in full each month.
What if you have forgotten or don’t have a PIN?
If you have forgotten your PIN, you are able to change or nominate a new PIN at Carlton or Police Academy branches, Monday to Friday 9am to 5pm. If you cannot visit a branch, you may need to order a replacement card but a replacement card fee will apply.
This change applies at the following Woolworths owned stores: - Safeway/Woolworths
- Safeway/Woolworths Petrol
- Big W
- Caltex
- Safeway Liquor
- Dan Murphy
- BWS
- Dick Smith
- Tandy
- Thomas Dux
> Back to top Assisting Members with Financial HardshipRecent media reports have focused on steps that people can take to deal with financial problems in the current economic climate.
At Police Credit, we have always had systems in place to assist members who may be experiencing financial hardship, providing practical assistance where appropriate.
Our lending practices reflect our responsible approach to member loans. When determining your borrowing capacity, we take into account your ability to repay the loan. If unforeseen events occur, we will work with you and assess how we can best assist you and your family, based on your circumstances and ability to meet your obligations.
If you are currently experiencing financial difficulties or would like some practical assistance with budgeting, please call Member Response on 13 63 73 or call into your nearest branch. > Back to top
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