CBA Ties Up with Virgin as RBA Slams Brakes on Card Fee Bonanza

Commonwealth Bank has launched a new loyalty program tie-up with Virgin in what appears to be a snub to Qantas. The bank's Yello program now allows customers to earn points on more banking products, including home loans, savings accounts, insurance, and CommSec trading.

The earned points can be redeemed for Virgin's Velocity Frequent Flyer rewards. This move comes as the Reserve Bank of Australia (RBA) introduces changes to payments system reforms, which are expected to deny banks $660 million in revenue per year by capping interchange fees and banning card use surcharges.

CommBank Group Executive of Retail Banking Services, Angus Sullivan, said customers will be rewarded across more of their relationship with the bank. He emphasized that over nine million customers can earn points on everyday banking activities and redeem them for practical value.

The new partnership kicks in on October 1, the same day the RBA's reforms take effect. Comparison website Canstar warns that customers may need to make at least five transactions a month to earn points, with rates based on how many different banking products they have.