Frequent flyer rewards users may bear brunt of proposed changes by RBA

Frequent flyer credit card customers in Australia could miss out on rewards points if the RBA’s proposed credit card surcharge fee changes take effect. The RBA released a paper yesterday called “Review of card payments regulation” which called for a lower cap on interchange fees.

An interchange fee according to MasterCard online, is a “fee paid between a merchant’s bank and a cardholder’s bank to balance the costs in the payments system”.

The RBA speculated that because credit card providers will have to charge less in fees, they’ll recoup their losses by limiting rewards card perks. 

“The reduction in interchange fees, especially the cap on the highest credit card rates, is likely to result in some reduction in the generosity of rewards programs on premium cards,” said the RBA in the report. 

As the RBA stated in the report, interchange fees are currently capped at 0.50% for credit and 12 cents for debit for each transaction. But the credit card enquiry could bring that down to an average of 8 cents per transaction for debit and credit cards. 

Australia’s central bank received 40 submissions from financial institutions, merchants, and consumer groups for the credit card enquiry. 

The report the enquiry produced proved positive for businesses who have plastic payment facilities for their products and services. This is because fees charged by their banks will be capped at a lower rate. 

The Bank promised to work closely with Treasury and the ACCC towards a reduction in excessive credit card surcharges in the weeks ahead. 

Are you looking for a new rewards credit card? Use Mozo’s rewards revealer tool to see which cards offer the biggest rewards points for your situation.

Credit card comparisons on Mozo - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
  • Apply By 31 May 2021
    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    -
    Go to site
    Details
  • Bankwest Zero Mastercard

    No annual fee and up to 55 days interest free on purchases. Get a notification before your minimum payment is due by setting up Easy Alerts in the Bankwest app.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    17.99% p.a.
    2.99% p.a. for 9 months and then 17.99% p.a.
    $0
    -
    Go to site
    Details
  • Hot DealLimited time cashback offer
    Westpac Low Rate

    Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.74% p.a.
    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59
    -
    Go to site
    Details
  • ME frank Credit Card

    Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    11.99% p.a.
    No current offer
    $0
    -
    Go to site
    Details
  • NAB Qantas Rewards Signature Card

    NABs fastest way to earn Qantas Points. 110,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. 7 complimentary insurances when you meet eligibility criteria including Overseas Travel Insurance.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    19.99% p.a.
    0% p.a. for 6 months and then 21.74% p.a. (2.00% balance transfer fee)
    $395 $295 in the first year
    Qantas Frequent Flyer
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.