Banks Hike Fees as Card Surcharge Ban Looms
Australia's biggest banks are introducing fee hikes and slashing rewards to offset losses from the impending card surcharge ban on October 1.
The Reserve Bank of Australia (RBA) has decided to scrap surcharges on debit and credit payments, which is expected to cost banks about $600 million per year in interchange fees.
To make up for this loss, St George has increased the interest rate on its Amplify Qantas Platinum credit card from 20.99% to 23.99%, while also raising its annual fee from $75 to $125 and reducing the interest-free period on purchases by 10 days.
Westpac is also increasing interest rates on some of its credit cards and boosting annual fees, and NAB will hike its credit card interest rates by 1.5%.
The Commonwealth Bank has changed its Commbank Awards program to a revamped CommBank Yello loyalty and points scheme.