On 1 October 2026, the Reserve Bank of Australia (RBA) introduced significant changes to Australia’s card payment system, including lower interchange fees and the removal of surcharges on most Visa, Mastercard and EFTPOS transactions.
While these reforms are designed to reduce payment costs for businesses and simplify card payments for consumers, they are also having an impact on the credit card rewards points market.
For Australians who regularly use credit cards to earn Qantas Points, Velocity Points or other frequent flyer rewards, it’s worth taking a closer look at what has changed.
One of the biggest changes introduced by the RBA is a reduction in interchange fees. These are fees paid between financial institutions when customers make card purchases and have traditionally helped fund credit card rewards programs.
With banks now receiving less revenue from these transactions, many are reviewing the benefits they offer cardholders.
Some Australian banks have already announced changes to their credit card programs, including:
Not every card has been affected in the same way. However, the changes mean some previously attractive rewards cards may no longer offer the same value.
Absolutely, but choosing the right card is becoming increasingly important.
For frequent travellers, credit cards can still be a valuable way to accumulate points towards Business Class and First Class reward flights, especially for businesses that are able to funnel the majority of their spending onto a reward point-earning credit card.
Rather than focusing solely on how many points a card earns per dollar, it’s worth considering the overall value of the rewards program.
This includes annual fees, points earning limits, airline transfer partners, conversion rates and additional benefits such as travel insurance or lounge access.
It’s also important to consider how you intend to use your points. A card offering a higher earning rate isn’t necessarily the best option if its rewards cannot be transferred to your preferred airline program. This is where our team of Reward Point Experts can help you strategise in a 1:1 Points Planning Session for the best reward program to align with your travel needs and preferences.
With different banks taking different approaches to the reforms, shopping around and reviewing your existing card could make a meaningful difference to your long-term points earning potential.
One option worth considering is American Express.
Unlike traditional Visa and Mastercard arrangements, American Express operates a different payment network model and is not directly subject to the same interchange fee reductions introduced by the RBA.
As of October 2026, American Express has not announced significant reductions to its credit card points earning rates or Membership Rewards transfer rates in response to these reforms.
This could make American Express an attractive option for travellers looking to maintain their points earning potential, particularly through cards offering flexible airline transfer partners. Read more about how much your AMEX membership rewards points are worth in this article.
However, it’s still important to consider annual fees, merchant acceptance, spending requirements and the individual benefits of each card before making a decision.
Credit cards aren’t the only way to build your frequent flyer points balance.
For business owners, services such as pay.com.au offer another way to earn rewards on eligible business expenses, including supplier invoices, tax payments and other bills.
Depending on the payment method and rewards options selected, businesses may be able to earn points through both their existing rewards credit card and the PayRewards program.
This can open up additional points earning opportunities on expenses that might otherwise earn few or no rewards.
It’s important to consider the transaction fees involved and whether the value of the points earned outweighs the additional costs.
For travellers focused on building a substantial points balance, combining different earning methods may be more effective than relying on a single credit card.
While earning frequent flyer points is one part of the equation, knowing how and when to use them can be just as important.
With changing credit card rewards programs and airline transfer arrangements, understanding where your points can deliver the greatest value is becoming increasingly worthwhile.
At The Well Connected Traveller, our team helps clients navigate the complexities of frequent flyer programs, including points earning strategies, airline points transfers and booking Business Class and First Class reward flights. Learn more about how our team can help you book with points here.
Whether you’re reviewing your current points strategy or looking to turn your existing balance into your next luxury holiday, our specialists can help you make more informed decisions.
Speak to The Well Connected Traveller team to discover how you can maximise your frequent flyer points and make your next reward flight a reality.
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