Card surcharges end October 1, but banks are raising fees and cutting rewards
From October 1, card surcharges disappear, saving consumers $1.6 billion yearly, but banks are raising annual fees and slashing rewards points.
The irritating percentages added to card payments vanish next month when the Reserve Bank ends card surcharges on Eftpos, Visa, Mastercard, American Express, JCB and UnionPay. Consumers will save about $1.6 billion a year.
The RBA is also capping interchange fees (what banks charge merchants) at 0.3 per cent, down from 0.8 per cent, saving small businesses $910 million yearly. Banks are raising annual credit card fees and offering fewer perks because surcharges and interchange fees have subsidised frequent flyer and rewards programs.
Westpac is lifting rates on some credit cards, and NAB rates will rise 1.5 per cent. St George introduced a $125 annual fee and cut the interest-free period by 10 days.
ANZ dropped sign-up bonus offers. Commonwealth Bank is changing how you earn rewards points entirely.
- $1.6 billion per year
- Consumer savings from surcharge removal
- $910 million per year
- Small business savings from interchange
- 0.3 per cent, down from 0.8 per cent
- New interchange fee cap
- 1.5 per cent
- NAB rate increase
Why it mattersFewer surcharges sound good, but higher annual fees and slashed rewards points mean the overall cost of using credit cards may not actually fall for many people.
AustraliaEvery Australian who uses credit or debit cards will feel the change from October 1. The net savings depend on how much you spend and which card rewards matter to you.
✓ Claims checked against the source and corrected before publish. checked 12 d ago
