RBA Surcharge Ban Sparks Travel Insurance Changes
The Reserve Bank of Australia (RBA) is changing credit card regulations to remove surcharges from designated networks, starting October 1. This means people won't be charged extra for using their cards at checkout.
However, some banks are altering the benefits offered to customers as a result. For many Australians, using a credit card to pay for travel triggers travel insurance coverage for that trip. With surcharges removed, providers like ANZ and Commonwealth Bank of Australia (CBA) are changing their rewards programs.
ANZ customers may receive limited or no travel insurance coverage, while CBA customers with eligible accounts will have international trip cancellation cover capped at A$2,500 per cardholder. Extended warranty and other insurances are being scrapped under the bank's new rules.