Banks Ditch Credit Card Rewards Amid RBA Fee Cuts
The Reserve Bank of Australia's (RBA) upcoming payments reforms could have a significant impact on credit card rewards. The RBA is set to cut interchange fees, which fund these programs, by more than 60% from October 1, 2026. As a result, many banks are already moving to reduce benefits for consumers.
Some of the changes include reduced sign-up bonus offers and cuts to earn rates on certain cards. For example, ANZ has slashed the sign-up bonus on its Frequent Flyer Black card from 130,000 Qantas Points to 80,000. Westpac has also reduced complimentary insurance perks on selected cards.
Five credit cards that still offer attractive rewards programs are worth considering before these changes take effect. The Westpac Altitude Qantas/Velocity Black card offers up to 150,000 bonus Qantas Points with a $6,000+ spend within 90 days of card approval. Another option is the Qantas American Express Ultimate card, which earns up to 120,000 bonus Qantas Points and comes with a $450 Qantas Travel Credit.
The American Express Explorer card also offers attractive rewards, including up to 125,000 Bonus Membership Rewards Points and a $400 travel credit. The Virgin Money Velocity High Flyer Card comes with up to 100,000 Bonus Velocity Points and an annual $129 Virgin Australia gift voucher. Lastly, the NAB Qantas Rewards Signature Card offers up to 130,000 bonus Qantas Points and $250 cashback.