‘RBA has thrown consumers under the bus’: credit card rewards cut

RBA payment rule changes threaten consumer credit card rewards and may lead to higher costs for customers

‘The RBA has thrown consumers under the bus’ with new payment rules affecting credit card rewards.

New payment rule changes from the Reserve Bank of Australia are expected to reshape the country’s credit card rewards landscape, with experts warning consumers could earn fewer points while paying more for everyday purchases.

Tom Goward, Editor in Chief at Flight Hacks, says the reforms will reduce the value of credit card rewards programs as banks respond to lower interchange fees by cutting sign up bonuses and reducing points earn rates.

He argues the changes will make it harder for Australians to maximise the value of their spending through frequent flyer and rewards programs.

Beyond reduced rewards, consumers could also face higher costs if businesses choose to pass on more payment acceptance fees at the checkout.

While the long term impact on existing cardholders and future rewards programs remains unclear, the changes are expected to have significant implications for millions of Australians who rely on credit card perks.

Watch the full interview to learn what the changes could mean for your wallet and how cardholders may need to rethink their rewards strategy.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker