Card Payment Reform Sparks Travel Insurance Crisis for Millions in Australia

Australia's card payment reform is set to disrupt one of the travel insurance sector's most significant distribution channels, putting millions of Australians at risk of losing access to complimentary travel insurance policies.

The Reserve Bank of Australia (RBA) confirmed a ban on card payment surcharges across eftpos, Mastercard, and Visa networks alongside reductions to interchange fee caps. Issuer interchange revenue is expected to fall by an estimated $660 million per year.

Banks have begun acting ahead of the deadline, with NAB phasing out complimentary travel insurance on several of its cards from May 2026 and ANZ reducing its international cover cap from unlimited to $20,000 and raising the excess to $350.