Impact of RBA interchange fee cuts on Qantas Frequent Flyer points earnings and alternatives

Consensus Summary

The core story revolves around the Reserve Bank of Australia’s October 2023 reduction in credit card interchange fees—dropping from 0.8% to 0.3%—which will significantly cut revenue for credit card providers, including the points they pay to airlines like Qantas. This follows a ban on debit/credit surcharges, leaving merchants with less compensation for processing fees. Both articles highlight that the 2017 RBA fee cuts led to major point reductions (up to 50%) and smaller sign-up bonuses, signaling that frequent flyers may soon struggle to earn bulk points through credit cards alone. As alternatives, Qantas offers high-value sign-up bonuses (140,000 points for health insurance) and loyalty programs like the Wellbeing app, which rewards daily activity with points. Grocery stores (Woolworths, BIG W) and utility providers (Red Energy, Origin Energy) also provide steady point accumulation through everyday spending, while fuel stations like Ampol and BP offer points for petrol purchases. The consensus is clear: credit card rewards are declining, and savvy travelers must diversify their points-earning strategies across insurance, shopping portals, and utility switches to maintain access to frequent flyer benefits.