Surcharges Gone, but Rewards Cards May Suffer

Australians will soon see the end of credit card surcharges, set to disappear on October 1st. The Reserve Bank of Australia estimates this change could save consumers around $1.6 billion annually.

While it may seem like a straightforward win for consumers, the cost of processing card payments hasn't disappeared. Instead, banks and card providers may look elsewhere to recoup their costs, potentially affecting rewards credit card holders.

Finder's survey found that 43% of Australians are unaware of the upcoming change, which could impact millions of people using debit cards or basic credit cards.

As a result, some card providers may introduce higher annual fees, lower points earn rates, smaller sign-up bonuses, or fewer benefits. Rewards cards could become less rewarding, with banks and card providers needing to adjust their pricing strategies.