Are credit card points about to be worth less?

Your credit card points might not be worth what they used to be. And it’s not just because they’re hard to redeem.  

From 1 October, card surcharges are being removed across Visa, Mastercard and eftpos, meaning merchants generally won’t be able to charge you extra just because you paid by card.  

Sounds like a win, right? It is. But there’s more to it...  

At the same time, the RBA is cutting the interchange fee cap from 0.8% to 0.3%. That’s the fee banks charge merchants when you pay by credit card, and it helps fund rewards programs.  

When that drops, banks may look to cut rewards or hike fees to balance things out. 

Some banks are already passing on the cost 

ANZ already cut bonus Qantas Points offers in July, while NAB, Westpac and St.George are increasing fees and devaluing points across several credit cards and The Bank of Queensland is halving the number of points earned per dollar for their platinum card from October.  

It’s a good reminder that while the number of points in your account might stay the same, the rewards you can get for them could change overnight.  

Why cashback is different 

Cashback gives you money, not points. $100 of cashback is $100 you can spend.  

That’s why with our Cashback Rewards Card you know exactly what you’re getting: 1% cashback on eligible purchases, credited to your account monthly when you make your minimum repayment on time. 

There are no points to convert, reward seats to hunt down or wondering what your points will be