Recent changes to payment options may offer frequent patrons of a prominent Australian retail pharmacy a tangible benefit at the point of purchase.
This change in transaction processing aims to allow customers to reduce incidental costs while accruing a form of financial return.
Regular shoppers at these establishments may find the details of this new system particularly advantageous.
If you’re a regular at Chemist Warehouse—and let’s face it, who among us hasn’t popped in for a script and left with a trolley full of vitamins, shampoo, and a sneaky box of chocolates—there’s some good news that could save you money at the checkout.
The pharmacy giant has just rolled out a new way to pay in-store, designed to help Australians avoid those pesky card surcharges while earning a little something back.
What’s changed at Chemist Warehouse checkouts?
Chemist Warehouse has become the first major Australian retailer to offer a ‘Pay by Bank’ option in partnership with ShopBack and Banked.
Instead of tapping your credit or debit card, you can now pay by scanning a QR code at the checkout using the ShopBack app.
This method allows you to pay directly from your bank account, bypassing the fees that banks and card companies like Visa and Mastercard usually charge retailers—fees that, while not always passed on directly, add up to millions yearly.
But that’s not all. By using this new payment method, you’ll also be able to earn cashback and rewards through ShopBack, making your next trip to Chemist Warehouse a little more rewarding.
Why is this a big deal?
Card surcharges have been a sore point for Aussie shoppers for years. According to the Reserve Bank of Australia, Australians fork out nearly $1 billion every year in card surcharges.
While Chemist Warehouse says it absorbs more than $15 million in payment fees annually rather than passing them on to customers, these costs still impact the business, and, indirectly, all of us.
The government has announced plans to ban debit card surcharges from January 2026, but until then, any way to avoid extra fees is a win for shoppers.
Plus, every dollar counts, and the cost of living is on everyone’s mind.
How does Pay by Bank work?
It’s surprisingly simple:
- Download the ShopBack app (if you don’t already have it).
- Link your bank account securely within the app by selecting ‘Securely Add Bank Account or PayID’.
- Enable ‘PayTo’ in your banking app (this is a new, secure way to authorise payments directly from your account).
- Scan the QR code displayed on the payment terminal using the ShopBack app at the Chemist Warehouse checkout.
- Pay directly from your bank account—no card is required, and there is no surcharge. You’ll earn cashback or rewards on your purchase.
Is it safe?
Security is a top priority. The Pay by Bank system uses the latest in payment technology, including PayTo, which is backed by Australian banks and designed to give you more control and security over your payments. You authorise each payment, and your bank details aren’t shared with the retailer.
Why are QR code payments becoming so popular?
If you’ve travelled in Asia, you’ll know QR code payments are everywhere—from street food stalls to department stores.
Australia is catching up, with major retailers like Muji, Vodafone, MJ Bale, and L’Occitane already offering QR code payments.
Even the big banks and supermarkets are getting on board, with Coles and Woolworths trialling new eQR systems.
Finance experts say QR code payments are not only convenient but also more secure and cost-effective for both shoppers and retailers.
As more businesses see the benefits, expect to see QR codes popping up at more checkouts near you.
What’s in it for you?
- No more surcharges: Avoid those annoying extra fees at the checkout.
- Earn rewards: Get cashback or points through ShopBack every time you pay.
- More payment choices: If you’re not a fan of using cards, this is a great alternative.
- Security: PayTo and QR code payments are designed with your safety in mind.
A sign of things to come?
Chemist Warehouse’s move is likely just the beginning. As the cost of card payments continues to rise, and as shoppers demand more value and flexibility, expect to see more retailers offering similar options.
It’s a win-win: businesses save on fees, and customers get more choice and rewards.
Have you tried Pay by Bank or QR code payments yet?
We’d love to hear your experiences! Have you used the new system at Chemist Warehouse? Do you prefer paying by card, cash, or app? Are you a fan of ShopBack or other rewards programs? Share your thoughts in the comments below—your feedback helps other YourLifeChoices readers make the most of their money.
Also read: How to slash your monthly grocery bill, per money expert
Or, one could simply choose one’s bank on the payment thingy to avoid charges, a la Aldi. Honestly, businesses are finding all kinds of ways to expose us to security breaches. Oh, and by the way:
“While Chemist Warehouse says it absorbs more than $15 million in payment fees annually rather than passing them on to customers, these costs still impact the business, and, indirectly, all of us.” It’s not “indirectly” affecting us at all, it’s very directly affecting us by this ‘lost’ revenue being included in the cost of all items beyond those attached to the PBS. Or does Chemist Warehouse claim a $15 million tax deduction?