RBA Reforms Spark Credit Card Shake-Up: What You Need to Know

The Reserve Bank of Australia (RBA) has introduced reforms that will scrap small surcharges on debit, prepaid, and credit cards from October 1, saving customers about $1.6 billion each year.

However, experts warn that some credit card holders may be worse off under the reforms as banks look to recoup lost revenue by changing what you can earn on your card (perks and points) and how much you're paying in card fees.

Financial literacy expert Nicole Pederson-McKinnon says banks have been 'quietly slashing' credit card perks, increasing some fees, in the lead-up to the October 1 changes.

'It's en masse and it's going to be for every credit card holder in the country,' she says. 'Mostly it's changes to the earn rates on frequent flyer points.' Some interest rates are going up, annual fees are increasing, while freebies like complimentary travel insurance are being curbed.

Both Pederson-McKinnon and senior financial planner Rebecca Pritchard recommend weighing up increases to annual fees, purchase rates, reductions in points earning rates, caps on points you can earn, and cuts to perks such as travel insurance.