finance
Australian Banks Cut Credit Card Rewards Ahead of Surcharge Ban
Several banks are reducing points-earning rates, raising fees, and limiting lounge access on credit cards issued under white-label programs. The changes take effect October 1 when a Reserve Bank ban on merchant surcharges begins.
Jul 16, 4:20 AM·2m read1 source
The Sydney Morning HeraldAudio version
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Banks have begun reducing rewards on certain credit cards ahead of a Reserve Bank ban on merchant surcharges scheduled for October 1. The changes affect cards issued under NAB's white-label program, including those branded Bank of Queensland, Virgin Money, and MyCard.
NAB announced the adjustments on Thursday. Emails sent to customers stated that the Reserve Bank changes affect how the bank pays for extra card benefits.
Prestige will be discontinued.
MyCard Premier will replace a two-points-per-dollar online rate with a flat 1.5 points per dollar on domestic purchases. MyCard Premier Qantas will move to a flat 0.5 Qantas points per dollar across all transactions, subject to a $7,000 monthly cap. Annual fees on MyCard Rewards will rise from $199 to $249. MyCard Simplicity, previously fee-free, will carry a $49 annual fee.
Bank of Queensland Cards Virgin Australia Velocity Flyer Card fees will increase from $149 to $169, with earning rates reduced to 0.5 points per dollar up to $1,500 and 0.25 thereafter. Virgin Australia Velocity High Flyer Credit Card fees will rise from $329 to $349, with the top earning tier cut from one point to 0.75 points per dollar.
Virgin Money Anytime Rewards Card will end its flat one-point-per-dollar rate and instead award one point per dollar at supermarkets and restaurants and 0.5 points on other purchases. Its interest-free period will shorten from 55 to 44 days. Bank of Queensland Platinum Visa and Blue Visa cards will see retail purchase interest rates rise from 20.99 percent to 21.99 percent.
Express will voluntarily align with the surcharge ban. From October 1, additional and employee cardholders will lose Priority Pass and Plaza Premium lounge access, guest access will be limited to one person, and Lufthansa lounge access will end. The Reserve Bank estimates the interchange fee caps will reduce bank revenue by $660 million annually.
