National Australia Bank’s October rewards restructure is the clearest local example of how the Reserve Bank’s new surcharge and interchange rules are rewriting credit card economics. From 1 October, merchants can no longer add checkout surcharges for card payments, while allowable interchange fees—the amounts banks collect from retailers on each tap—fell sharply overnight.
Industry estimates put the annual interchange revenue loss across major issuers in the hundreds of millions of dollars. Banks had telegraphed for months that rewards programs would change once the ban took effect. NAB’s Qantas-linked cards now carry revised earn tables, higher program fees on some products, and trimmed insurance bundles that were subsidised by swipe-fee income.
Earn less, burn more
Westpac moved a day earlier, lifting purchase rates on several Altitude and Qantas cards to 23.99 percent and increasing annual card fees by as much as $80 on premium products. Westpac also raised redemption costs: a $100 eGift card that required 23,500 points before 30 September now costs 29,412 points, a roughly 25 percent increase in points needed.
Commonwealth Bank’s overhaul began on 29 September, folding Awards points deeper into its Yello loyalty platform and ending some fee waivers in favour of monthly vouchers. ANZ adjusted non-reward cards as well, lifting interest rates on several products and curbing complimentary insurances.
For frequent flyers, the practical effect is that everyday spending buys fewer Qantas Points, while aspirational redemptions demand larger balances. Cards that once made sense for high supermarket spend may no longer clear annual fee hurdles once program fees and higher interest rates are included.
Who benefits from the ban
Consumer groups championed the surcharge ban as relief at the terminal, especially for small businesses that had been passing on card acceptance costs visibly. Merchants still pay interchange, but cannot itemise a surcharge on receipts.
Cardholders who never paid surcharges—because they used debit, cash, or fee-free channels—see fewer direct savings, yet still face higher borrowing costs and weaker rewards. The cross-subsidy from merchants to points programs has been severed; banks are repricing to recover margin.
Comparison sites urge households to rerun the maths on their primary card before Christmas travel season. If earn rates on dining or supermarket categories have been downgraded, a flat-rate card or a dedicated airline cobrand with transparent fees may outperform a legacy platinum product.
Regulators will watch whether issuers introduce new fees that circumvent the spirit of the interchange cap. For now, the October statements arriving in mailboxes tell the story: the swipe-fee party funded by retailers is over, and Qantas Points enthusiasts are paying for the hangover.