Banks cut rewards on business credit cards despite no new cap
Australia's major banks are cutting business credit card rewards, even though the RBA is not imposing new caps on those transactions.
Australian banks including the Big Four are scaling back rewards on business credit cards by changing point calculations, insurance coverage, and interest-free periods. The move comes as the Reserve Bank bans surcharges on consumer card payments and caps interchange fees from 0.8% to 0.3%.
The RBA kept the business card interchange cap at effectively 0.8%, meaning banks face no pressure to cut those rewards. Money.com.au analysed cards from Commonwealth Bank, Westpac, ANZ, NAB, St. George, BankSA and Bank of Melbourne and found the changes across the board.
Business owners already dealing with high interest rates and rising costs say the cuts add another squeeze.
- 0.3% down from 0.8%
- Consumer interchange cap
- 0.8% unchanged
- Business interchange cap
- 7 banks including Big Four
- Banks analysed
Why it mattersBusiness owners already battling rising costs, high interest rates, and falling customer spending now face lower credit card rewards, adding pressure during a cost-of-living crisis.
AustraliaSmall and medium businesses across Australia will see lower rewards on their everyday spending from October 1, affecting cash flow and operational costs.
✓ Claims checked against the source and corrected before publish. checked 8 d ago
