Australian Banks Raise Credit Card Fees Amid Surcharge Ban

The Reserve Bank of Australia is set to implement changes to credit and debit surcharges on October 1, which will reduce the amount banks charge businesses for using their systems.

Banks have responded by increasing credit card fees, reducing reward program perks, and cutting back on travel insurance inclusions.

Trevor Vienet, a Commonwealth Bank customer for four decades, is changing banks due to CBA's decision to wind up its association with the Qantas Frequent Flyer program and introduce a new in-house rewards system called Yello.

CANSTAR's data insights director Sally Tindall said that banks are looking to recoup some of their loss as a result of reduced interchange fees, which will likely be passed on to consumers through increased fees or reduced services.