ANZ lifts credit card rates as big banks Westpac, NAB and CBA gut perks ahead of $1.6b surcharge ban

ANZ has become the last of the big four banks to reveal its credit card overhaul ahead of the October 1 surcharge ban, raising rates and stripping back travel cover.

Card surcharges on EFTPOS, Visa, Mastercard and American Express payments will end next month, with Canberra estimating Australians will save $1.6 billion a year.

The Reserve Bank of Australia is also cutting interchange fees, paid between banks when a customer uses a card and ultimately built into the merchant’s payment costs.

Banks have used part of that income to finance points, insurance and other card benefits.

“The cuts to travel insurance could push some people into taking out a stand-alone policy, or potentially turning their back on the card altogether,” Canstar data insights director Sally Tindall said.

Here’s what’s changing with the big four banks:

ANZ

ANZ’s changes begin on September 28. Purchase rates on most of its rewards and frequent flyer cards will climb from 20.99 per cent to 22.49 per cent, with cash advance rates and fees also increasing.

Complimentary international and domestic travel cover on Rewards Platinum ends on December 9. Rewards Black follows on March 24, 2027.

Overseas insurance on Frequent Flyer Platinum will be narrowed from December 9, with Frequent Flyer Black following on March 24. Benefits and the maximum length of a covered trip will be reduced.

Points earn rates survive, though ANZ will impose monthly caps from October 28. Customers will stop earning after spending either $25,000 or $50,000 in a month, depending on the card.

Few households will trouble those limits. Higher interest and the loss of insurance are more likely to determine whether the card remains worth holding.

Commonwealth Bank

Commonwealth Bank will transfer eligible Awards customers into its Yello program from September 29. Earn rates will depend partly on how many products they hold with CBA. Customers generally must also hold a transaction account and use it for at least five purchases a month.

A $50 Myer gift card will require about 12,500 points instead of 10,950, an increase of 14 per cent.

CBA’s Smart card will attract a 3.5 per cent international transaction fee from September 29, while overseas trip cancellation cover will be capped at $2500 a person.

Fee-waiver changes follow on January 1 next year. Monthly waivers worth $35 on Ultimate and $19 on Smart will disappear, replaced by travel and dining vouchers with a similar face value. Customers will have to use the vouchers to recover the cost.

NAB

NAB will lift purchase rates on several rewards and Qantas cards from 20.99 per cent to 22.49 per cent on October 1 and reduce some earn rates.

Its Rewards Signature card currently charges $35 a month, though customers can have the fee waived. That will become an unavoidable $395 annual charge. A customer now paying every monthly fee would save $25 a year, while someone qualifying for the waiver will be $395 worse off.

Westpac

Westpac will reduce its international travel insurance largely to emergency medical and related cover from October 1, removing benefits for trip cancellation, delays and lost luggage.

The excess rises from $300 to $500. Flight-delay lounge passes will be added, but customers must activate the feature beforehand.

Westpac says the insurance overhaul is not directly related to the lower interchange limits.

Beyond the big four

Canstar has recorded announced changes from 12 card providers in all: the big four, Bankwest, Bank of Melbourne, St.George, BankSA, Bank of Queensland, Coles, MyCard and Virgin Money.

Across the big-four range, post-October purchase rates will reach 23.99 per cent and annual card costs will run as high as $569, though those maximums do not apply to the same card.

Ms Tindall urged cardholders not to ignore notices from their bank.

“If you receive a notice saying your card is changing, don’t just file it away.”

“Read the fine print carefully because what looks like a small tweak to earn rates or insurance benefits can significantly reduce the value you get from your card over a year,” she said.

“Add up what you’ve paid in fees and interest over the last year, then work out the value of the rewards and perks you’ve actually redeemed in this time.

“If it doesn’t stack up, your card is already getting the better of you, even before the new changes kick in.”