CBA Shifts Loyalty Program to Favor Virgin Velocity Points

Commonwealth Bank of Australia (CBA) is shifting its loyalty program to favor Virgin Australia's Velocity points over Qantas Frequent Flyer points. This change is part of a broader overhaul of CBA's rewards system, which will introduce a new in-house points currency called Yello.

The overhaul comes ahead of an October ban on credit card surcharges by the Reserve Bank of Australia (RBA), which has forced banks to rethink their loyalty programs. Under the new scheme, customers earning Yello points can redeem them for Virgin Velocity points at more favorable exchange rates than Qantas Frequent Flyer points.

CBA's retail division head Angus Sullivan framed the change as an expansion of access rather than a downgrade. The bank is also introducing a new rewards structure that will reward customers who bundle multiple products, such as mortgages and insurance policies, with higher earning rates on their spending.