Westpac Banking Corporation and National Australia Bank published refreshed rewards earn schedules for their premium credit cards this week, tweaking bonus-point caps on supermarket and fuel categories as merchants adjust to Canberra’s ban on debit and credit card surcharges at checkout.
Why card issuers moved now
The prohibition, which took effect on 1 October, stops retailers from passing scheme fees directly to consumers at the point of sale. Supermarkets, cafes and tradies instead face the cost inside their merchant service agreements, and many are renegotiating terminals or steering customers toward EFTPOS debit. For banks, that changes the economics of high-rewards cards that depend on interchange income to fund points.
Westpac’s Altitude and Amplify products now credit 1.5 points per dollar on the first $3,000 of eligible grocery spend each statement period, down from a flat 2 points on uncapped supermarket transactions last quarter. NAB’s Qantas-linked Signature card keeps 1.25 points per dollar on everyday spend but adds a monthly bonus only after $2,500 in total purchases, a structure designed to reward consolidated spending rather than micro-transactions at milk-bar tappings.
What shoppers should check
Neither bank raised annual fees in this cycle, but both trimmed overseas ATM rebates and clarified that government services and bill payments no longer qualify for accelerated earn. Customers who used to chase points by paying rent through third-party portals will need to read the fine print: many of those pathways now code as cash advances or ineligible merchant categories.
Comparison sites reported a spike in balance-transfer inquiries after the surcharge ban, as households shift focus from merchant fees to interest costs. With the cash rate on hold this month, variable purchase rates near 20 per cent remain the bigger drag for revolvers than rewards marketing ever offsets.
Merchant side of the ledger
The Australian Retailers Association said small operators are still absorbing a 0.5 to 1.2 per cent hit on card turnover, depending on scheme mix. Some pub groups are testing minimum spend thresholds for tap-only lanes, while others promote cash discounts within ACCC advertising rules.
Issuers argue that richer app offers—such as waived international transaction fees for premium tiers—replace pure points inflation. Consumer groups counter that transparency improved at checkout but complexity merely moved into card terms and conditions.
How rivals are responding
Commonwealth Bank and ANZ have not matched every tweak yet, though analysts expect harmonisation before Christmas shopping peaks. American Express, largely exempt from the surcharge cap on its proprietary network, is pitching small businesses on flat-fee merchant plans while consumer teams highlight lounge access bundles.
For households juggling mortgages and groceries, the practical advice from financial counsellors remains boring and effective: pay the statement balance each month, ignore earn rates if you carry interest, and treat rewards as a rebate on spending you would do anyway—not a reason to inflate the cart.