Big changes are coming to points and credit cards: How much will it cost you?
Key takeaways
- Many points-earning credit cards will have higher fees and lower earn rates come 1 October 2026.
- This is because the incoming ban on card surcharges makes points and reward programs more expensive for banks to run.
- What's next: Points hackers should re-evaluate their card and consider switching to a better offer.
If you earn frequent flyer or reward points on your credit card, big changes are coming soon. From the 1st of October, many frequent flyer and reward points earning credit cards are seeing big downgrades.
Some cards will charge higher annual fees, or slash the earn rates you get when you spend money on the cards. Some cards are even removing complimentary travel insurance cover.
These changes are coming as a result of the RBA's ban on credit and debit card surcharges. The ban takes effect on the 1st of October 2026.
The surcharge ban is good news for most Australians. It means you're no longer paying fees when you tap your card while shopping. But it's bad news for those Australians who earn points on their credit cards.
Card surcharges subsidise the cost that banks and credit card companies pay to offer loyalty and reward points programs. Once the surcharge ban is in effect, these companies have to offset the surcharge income by charging higher fees on credit cards and offering lower earn rates.
How much will these changes impact your credit card?
Let's explore a few examples of credit cards that are getting downgrades on the 1st of October.
Velocity High Flyer
The Velocity High Flyer credit card from Virgin Money currently has an earn rate of 1 point per dollar and the annual fee is $329.
But from the 1st of October, you will only earn 0.75 points per dollar and the annual fee increases by $20 to $349.
So you're paying $20 more for the annual fee while earning less every time you spend. Currently, if you spent $20,000 a year on the credit card, you could earn 20,000 Velocity points. But from next month, if you spent the same amount, you'd only earn 15,000 points. That's 5,000 points fewer.
Now, the value of Velocity Points depends on how you redeem them. They could be worth anywhere between 0.5 cents and 4 cents per point. Let's be conservative and say you use your Velocity Points on an economy reward flight.
They could be worth about 2 cents per point. Then 5,000 points is worth around $100. So, you're potentially getting $100 less value out of the card each year and paying $20 more in fees.
St.George Amplify Qantas Platinum
The St.George Amplify Qantas Platinum card currently charges a $175 annual fee plus a $75 annual Qantas Rewards program fee.
While the earn rate isn't really changing too much with this card, from 30 September, that annual Qantas Rewards program fee is jumping to $125. That's a $50 increase.
And the value of Amplify Rewards Points is decreasing substantially too. Right now, a $100 digital gift card costs 20,000 Amplify Rewards points, but by the end of the month, that will jump to 29,412 points, an almost 50% increase.
You earn 0.5 Amplify Rewards Points per dollar on everyday spending (you can earn more on international spending though). Before the changes, you'd have to spend $40,000 to get 20,000 Amplify Rewards Points and redeem them for a $100 gift card.
Now you'd have to spend $58,824 to get enough points for that gift card. That's over $18,000 more you'd have to spend.
Westpac Altitude Qantas Platinum
The annual fee on the Westpac Altitude Qantas Platinum card will also increase by $50.
And it's getting a points downgrade, too. Currently, a $100 e-gift card costs 23,500 Altitude Reward Points. From the 30th of September, it will cost 29,412 points.
The points earn rate on this card isn't changing numerically, but spending on restaurants, cafes, fast food, bars, entertainment, and hotels, which were previously categorised as everyday spend, are now lumped into the all other purchases category with a lower points value.
What can you do about these changes?
If your card is affected by these changes, there are a few things you can do. The first step is to re-evaluate your card after the changes have come into effect. You need to decide if the card is still worth it for you.
Are you still getting value out of the card while paying a higher fee and earning fewer points or earning points that are worth less?
If you're not happy, then it's time to look for a new credit card. When considering a new offer, be sure to factor in the cost of the annual fee, the perks and benefits the card offers, the card's earn rate, and the value of the points it offers.
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