Commonwealth Bank will raise the minimum purchase amount eligible for four-fortnightly StepPay instalments from $100 to $150 from 14 October, and will pull sub-threshold charges from linked accounts within one business day instead of two, tightening repayment discipline on its Mastercard-linked buy-now-pay-later product.
The bank notified StepPay customers by email Wednesday morning, citing the Reserve Bank’s decision to increase the cash rate target to 4.60 per cent and internal stress-test results on unsecured portfolios. A CommBank spokesperson said the changes affect only new transactions after the effective date; existing instalment schedules will run unchanged.
What customers will see
Under current terms, purchases of $100 or more split into four equal fortnightly debits from a nominated CommBank transaction account, while purchases below $100 are deducted in full two days after posting. From 14 October, only purchases of $150 or more qualify for instalments; anything between $50 and $149.99 will debit in full the next business day. Purchases under $50 remain blocked unless the customer opts into a single immediate debit.
Late fees stay capped at $10 per missed instalment with a $120 annual ceiling, per the June 2025 key facts sheet. CommBank said it would refresh in-app repayment calendars automatically and push notifications seven days before the first higher-threshold charge posts.
Why the bank acted now
Consumer groups had pressed lenders to treat BNPL like regulated credit after StepPay began reporting to credit bureaus. CommBank’s change stops short of adding interest but steers smaller discretionary purchases back to traditional cards, where variable purchase rates have risen with each RBA hike this year. Analysis by Canstar shows the bank’s lowest-rate unsecured cards now sit above 20 per cent for customers without mortgage bundles.
ASIC data released last month showed StepPay active accounts grew 18 per cent year on year, with average limits near $1,400. The bank did not disclose portfolio loss rates but told analysts in August that BNPL delinquencies remained below personal loan averages.
Competitive context
Afterpay and Zip still allow lower entry tickets for instalment plans, though merchants pay higher merchant service fees. NAB’s Pay Later product uses a $100 floor similar to StepPay’s outgoing rule. Consumer advocates warned that raising minimums could push cash-strapped shoppers toward higher-cost payday products if they cannot qualify for larger StepPay tickets.
CommBank said customers can request hardship variations through its financial-assistance team and that StepPay limits will continue to be set through automated credit checks at activation.