The Reserve Bank of Australia (RBA) has implemented new reforms aimed at reducing card surcharges and cutting interchange fees, which have put pressure on bank revenues. Starting October 1, the reforms include lowering the maximum consumer credit card interchange fees from 0.8% to 0.3%, banning card surcharges, and requiring card networks to publish fee and interchange data. Businesses are expected to save around $910 million annually, while card issuers face a $660 million revenue hit.
In response, the Big Four banks, Westpac (ASX:WBC), Commonwealth Bank (ASX:CBA), National Australia Bank (ASX:NAB), and ANZ Group Holdings (ASX:ANZ), are raising fees, cutting reward points, and reducing perks like travel insurance and fee waivers. The changes vary by bank and card, with some adjustments extending into 2027.
Despite the cuts, banks are introducing new perks to retain customers. Commonwealth Bank is offering travel and dining credits, phone cover, and a complimentary DashPass. Westpac is providing global roaming data and airport lounge access, while NAB is boosting reward points for spending on groceries, petrol, and travel. ANZ has not yet announced any new benefits.
Sally Tindall, director of Canstar Data Insights, advises consumers to review their credit card usage. She suggests calculating the fees and interest paid over the past year and comparing them to the value of rewards redeemed. This assessment can help determine if the card is still beneficial under the new reforms.