Card surcharge ban: what the RBA reforms mean for your points

The line on the payment screen that used to read "card surcharge: $0.38" is gone. Since 1 October 2026, Australian businesses can't add a surcharge when you pay by eftpos, Mastercard or Visa. That's the part of the Reserve Bank's reforms everyone noticed.

The part that matters for points is quieter. The same reforms cut the money banks use to pay for your points, and most banks have already responded. Here's how it works, what's changed and what to do.

What changed on 1 October 2026

• Surcharges are banned on eftpos, Mastercard and Visa debit, prepaid and credit cards. American Express said it would also remove surcharging from the same date.
• Consumer credit card interchange is capped at 0.3% of each purchase, down from a 0.8% cap per transaction and an average of about 0.5%.
• Business credit cards keep the 0.8% cap.
• From 1 April 2027, interchange on foreign-issued cards used in Australia will be capped at 1%.

How interchange pays for your points

Every time you tap a credit card, the shop's bank pays your card issuer a small fee. That's interchange. On a $100 purchase, the old system gave the issuer up to 80 cents. Now it's at most 30 cents.

That fee has long been one of the main ways banks fund points. A bank issuing 1 Qantas Point per dollar has to buy those points from Qantas, and interchange helped pay for them. The RBA itself expected the reforms to leave banks with hundreds of millions of dollars less a year to spend on rewards and other card features.

We've seen this before

When the RBA capped interchange at 0.8% in July 2017, all four major banks cut points earn rates on their cards in the months beforehand, and ANZ stopped issuing American Express companion cards altogether. History is repeating, with a bigger cut this time.

What banks have changed so far

Correct as of October 2026. Banks are still announcing changes.

Three side effects to watch

Paying the ATO by card has been extended. The ATO planned to stop taking credit cards after 30 November 2026, but on 9 October the Government agreed to cover the card costs, so the ATO will keep accepting credit cards with no surcharge until 30 June 2027. If you earn points on tax payments, read How to earn points paying the ATO and your bills.

Sign-up bonuses may outlast ongoing earn. Several banks, including Westpac and MyCard, cut everyday earn rates or ratios but kept big sign-up offers. Bonuses are cheaper for a bank to fund than points on every purchase.

Amex looks relatively stronger, for now. American Express runs its own network and isn't strictly bound by the cap, though it has said it will follow similar rules. While Visa and Mastercard cards cut back, Amex cards may compare better than before.

Why banks are cutting where they're cutting

A bank has three levers when its income from cards falls: the earn rate on the card, the ratio at which its own points convert to airline points, and the fees it charges you.

Earn rates are on the front of the marketing page, so they're painful to cut. Transfer ratios and program fees are less visible, which is why so many banks moved those first. Sign-up bonuses are a one-off cost to win a new customer, so they often survive longer than ongoing earn.

What to do now

1. Check your card's new terms. Most changes took effect on 30 September or 1 October.
2. Recalculate your real earn rate in airline points, using the new transfer ratio and any new fees.
3. Count every fee. A card that now costs $75 more a year has to earn $75 more in value to stay worthwhile.
4. Don't panic-transfer. Moving points to an airline locks you in. Transfer only when you have a seat in mind.
5. Pay your card in full every month. Interest still costs far more than any points are worth.

For where your bank points can go now, see Points transfer partners: every Australian program mapped.