Australian Banks Cut Rewards Amid Merchant Surcharge Ban

Australia's major banks have cut reward programs in response to a federal ban on merchant surcharges. The Reserve Bank of Australia mandated that banks lower wholesale clearing charges and prohibited businesses from adding extra fees on top of everyday transactions.

The average Australian household previously paid around AUD 140 (KES 12,000) annually for these hidden transaction fees. Now, commercial banks have reduced the value of customer loyalty programs by up to 40 percent on premium credit products.

This has sparked a consumer backlash, with thousands of Australians vowing to switch to cash or close their premium credit accounts. Many are frustrated that banking institutions are retaliating against the government's effort to protect consumers from excessive fees.