Credit card rewards schemes devalued as interchange fee changes come into effect

With the RBA’s interchange fee regulations set to come into effect on July 1, the value of credit card rewards schemes may be about to tank.
In May 2016, the RBA announced new regulations which capped interchange fees charged on Australian-issued Visa and Mastercard credit cards at 0.8%, and which are about to come into effect on July 1 2017.
While this is good news for merchants - who will no longer pay hefty fees for accepting credit cards over the counter - it means banks make less profit from credit card transactions. The likely remedy to what could be a blow to the banks’ bottom lines? Reduced value on rewards credit cards.
A number of major players, including all four big banks, began to slash the value of their rewards schemes after the RBA’s changes were announced. Now, as the July 1 deadline looms, we’re likely to see more credit card providers follow suit.
Compare rewards credit cards - last updated 21 May 2022
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Qantas Ultimate Card
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$450100,0001.25 points uncappedReceive 100,000 bonus Qantas Points when you apply online, are approved, and spend $3,000 on your new Card within the first 3 months. Offer available to new Card Members only. Receive $450 annual Qantas Travel Credit.
CompareCompareQantas Ultimate Card
Receive 100,000 bonus Qantas Points when you apply online, are approved, and spend $3,000 on your new Card within the first 3 months. Offer available to new Card Members only. Receive $450 annual Qantas Travel Credit.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $450
- Bonus points
- 100,000
- Earn rate per $1
- 1.25 points uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 20.74% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1.25 points per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 100,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 19010.0
- Card Benefits
- Account alerts by SMS,
Card Purchase Cover ,
Travel Inconvenience Cover
Read our Mozo Review to learn more about the Qantas Ultimate Card
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Apply By 30 Jun 2022
Altitude Platinum
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$200 $99 in the first year75,0000.5 points up to $100,000/yearEarn up to 75,000 bonus Qantas Points ($4k min. spend in the first 90 days on eligible purchases). 0% p.a. for 24 months on balance transfers requested at card application. 1% BT fee applies. $49 First Year Annual fee and Rewards fee. New cards only. T&C's and exclusions apply.
CompareCompareAltitude Platinum
Earn up to 75,000 bonus Qantas Points ($4k min. spend in the first 90 days on eligible purchases). 0% p.a. for 24 months on balance transfers requested at card application. 1% BT fee applies. $49 First Year Annual fee and Rewards fee. New cards only. T&C's and exclusions apply.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $200 $99 in the first year
- Bonus points
- 75,000
- Earn rate per $1
- 0.5 points up to $100,000/year
- Intro rate
- -
- Ongoing Purchase rate
- 19.99% p.a.
- Balance transfer rate
- 0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 45
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 0.5 points per dollar on Mastercard, up to $100,000 per year
- Reward point expiry
- Never
- Bonus points
- 75,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 19010.0
- Card Benefits
- Travel Insurance,
Extended Warranty,
Purchase Protection
Read our Mozo Review to learn more about the Altitude Platinum
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Amplify Rewards Platinum + Kayo Offer
Rewards program
Annual fee
Bonus points
Earn rate per $1
Rewards$99 $29 in the first year100,0001 point uncapped100,000 bonus Amplify Points, (min $3,000 spend within 90 days). 0% p.a. for 24 months on balance transfers requested at card application (1% BT fee). $29 First Year Card Fee ($99 2nd year card fee) + Score up to $27.50 per month cashback on Kayo access for 12 months. New cards only, Eligibility criteria and T&Cs apply.
CompareCompareAmplify Rewards Platinum + Kayo Offer
100,000 bonus Amplify Points, (min $3,000 spend within 90 days). 0% p.a. for 24 months on balance transfers requested at card application (1% BT fee). $29 First Year Card Fee ($99 2nd year card fee) + Score up to $27.50 per month cashback on Kayo access for 12 months. New cards only, Eligibility criteria and T&Cs apply.
- Rewards program
- Rewards
- Annual fee
- $99 $29 in the first year
- Bonus points
- 100,000
- Earn rate per $1
- 1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 19.49% p.a.
- Balance transfer rate
- 0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 1 point per dollar on Visa, uncapped
- Reward point expiry
- Never
- Bonus points
- 100,000
- Sydney to Melbourne
- 15600.0
- Sydney to London
- 212000.0
- $100 Gift card
- 22200.0
- Card Benefits
- Travel Insurance,
Extended Warranty,
Purchase Protection
Read our Mozo Review to learn more about the Amplify Rewards Platinum + Kayo Offer
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Apply By 31 May 2022
Platinum Edge Credit Card
Rewards program
Annual fee
Bonus points
Earn rate per $1
Membership Rewards$195 $0 in the first yearNo current offer1 point uncappedEnjoy $0 Annual Card Fee (usually $195) in the first year when you apply by 31 May and are approved. Offer extended. T&Cs apply. New Card Members only.
CompareComparePlatinum Edge Credit Card
Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply by 31 May and are approved. Offer extended. T&Cs apply. New Card Members only.
- Rewards program
- Membership Rewards
- Annual fee
- $195 $0 in the first year
- Bonus points
- No current offer
- Earn rate per $1
- 1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 20.74% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- Interest free days on purchases
- 55
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- No current offer
- Sydney to Melbourne
- N/A
- Sydney to London
- 212000.0
- $100 Gift card
- 20000.0
- Card Benefits
- Extended Warranty,
Account alerts by SMS,
Card Purchase Cover ,
Travel Inconvenience Cover
Read our Mozo Review to learn more about the Platinum Edge Credit Card
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Qantas Premium Card
Rewards program
Annual fee
Bonus points
Earn rate per $1
Qantas Frequent Flyer$24970,0001 point uncappedReceive 70,000 bonus Qantas Points when you apply online, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only. Credit Card Provider of the Year in the Mozo Experts Choice Awards 2021^.
CompareCompareQantas Premium Card
Receive 70,000 bonus Qantas Points when you apply online, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only. Credit Card Provider of the Year in the Mozo Experts Choice Awards 2021^.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $249
- Bonus points
- 70,000
- Earn rate per $1
- 1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 20.74% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 70,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 19010.0
- Card Benefits
- Account alerts by SMS,
Card Purchase Cover ,
Travel Inconvenience Cover
Read our Mozo Review to learn more about the Qantas Premium Card
^See information about the Mozo Experts Choice Credit Card Awards
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Mozo Data Manager, Peter Marshall, said there are three main ways banks will be likely to recoup the lost profits from interchange fees; reducing points earn rates, introducing stricter caps and expiry dates on points, and hiking annual fees.
Reducing the amount of points earned per dollar is one of the more common strategies. Credit card giant Citi dropped the earn rate on five of its cards, while CommBank, NAB and Westpac reduced the earn rate on AMEX companion cards - by up to 2.5 points per dollar spent, in one case.
“Spenders who rely on their AMEX companion card to bump up their rewards earn have been left out in the cold a bit, but on the other hand, cards issued directly by AMEX were some of the only options that saw points earn rates increase this year,” Marshall said.
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ANZ also scaled back its rewards program considerably, ditching AMEX companion cards all together and introducing new points caps and tiered earning.
For example, the ANZ Rewards card used to earn cardholders 1.5 points per dollar on AMEX and 0.75 points per dollar on Visa, uncapped. Now, the AMEX companion card is no more, and shoppers can earn 1 point per dollar on Visa, up to $1,000 per month, and 0.5 points per dollar on spends after that threshold.
Suncorp and Virgin Money also introduced lower points caps. Suncorp capped points on its Clear Options Platinum Qantas card at $8,000 a month, while Virgin Money Velocity High Flyer cardholders will now earn 1 point per dollar up to $8,000 per month, down from a cap of $10,000 per month (still with an earn rate of 0.5 points per dollar afterward).
“Points caps and tiered earn rates like this mean cardholders need to be aware of how much they spend each month. If you usually spend under the monthly threshold, then it might not bother you. But if you’re a big spender, the fact that you’ll be losing out on rewards value on a portion of your spend each month is something to consider,” said Marshall.
RELATED: New Qantas rewards credit card: all you need to know about points, fees and bonuses
The annual fee was also adjusted on 14 credit cards this year and of those, 8 were increases while in 6 cases the fee was reduced.
“Some card providers may be raising annual fees to make up for lowered interchange profits, but it’s by no means a market-wide trend,” said Marshall.
“The thing to keep an eye on is whether you’re paying a higher annual fee while receiving the same or lesser value from your card. If so, it might be time to look for a new card.”
Want better value from your plastic? Make sure you’re carrying a rewards card that will net you the best bang for your buck by comparing options using our Rewards Revealer tool.