What you need to know about the major credit card changes coming in October

Australians with rewards credit cards are being warned to check the fine print, with sweeping changes to points, fees, insurance and interest-free periods coming into effect from next month.

The changes coincide with new rules banning businesses from charging customers payment surcharges above the cost of accepting a card payment from October 1.

WATCH THE VIDEO ABOVE: Credit card surcharge ban brings reward cuts

But while the crackdown on surcharges is expected to save consumers money at the checkout, credit card providers are using the changes to overhaul their rewards programs, with some customers facing higher fees and fewer benefits.

Canstar Data Insights Director Sally Tindall told Sunrise on Tuesday the changes affect a long list of cards, including those offered by St George, Bank of Melbourne, BankSA, Coles, Virgin, MyCard and David Jones.

While October 1 is the key date for many of the changes, Tindall warned the timing varies between providers, with some changes already in place and others not taking effect until March next year.

“It’s really important to get across what your card is doing,” she said.

Rewards points are being cut

The banks have used the changes as an opportunity to reset their rewards programs, with customers facing cuts to the number of points they can earn on some cards.

In some cases, including on some NAB and CBA cards, fee waivers are also being removed, meaning customers will no longer have their monthly fee waived after spending a certain amount.

CBA Smart Card customers are also facing the end of a major perk, with Qantas points no longer available through the card from October 1.

Tindall said customers need to look beyond the points they have accumulated and work out what they are actually getting back from their rewards program.

Fees and interest rates are going up

Some customers will also be hit with higher annual fees and interest rates.

Westpac, for example, is increasing the interest rate on its rewards cards from 20.99 per cent to 23.99 per cent. “If you’ve got a debt on one of those Westpac rewards cards, it should not be there. In fact, it shouldn’t be on any rewards card,” Tindall said.

Some annual fees are also increasing, with one CBA card set to cost customers up to $569 a year.

However, not every fee is increasing, meaning customers need to check the specific changes applying to their card.

Insurance and interest-free days are changing

Some of the benefits traditionally bundled into rewards cards are also being cut.

Complimentary international travel insurance is being reduced on some cards, while extended warranty insurance is being scrapped in some cases.

Some providers are offering different benefits in their place, including additional smartphone insurance.

St George customers will also see their interest-free period cut from 55 days to 45 days.

“That’s going to hurt a lot of people, that extra time to clear their debt,” Tindall said.

Is your card still worth it?

With so many changes coming, Tindall said customers should work out exactly how much their card is costing them before deciding whether to keep it.

“Go and do a stocktake. It’s not that hard,” she said.

“Work out exactly how much you’ve shelled out in the last 12 months on your credit card.”

That means adding up annual and monthly fees, international transaction fees and any interest charges.

Customers should then compare that figure with the actual value of the rewards and perks they have redeemed.

“If that equation is out of kilter already, it’s time to take your card shopping,” Tindall said.