Impact of RBA interchange fee cuts on Qantas Frequent Flyer points earnings
Consensus Summary
The core story revolves around the Reserve Bank of Australia’s October 2023 decision to slash credit card interchange fees by 63%, which will cut revenue for card providers funding frequent flyer programs like Qantas Points. This follows a similar 2017 fee reduction that led to reduced points earn rates and capped sign-up bonuses, signaling that credit cards may no longer be the primary way to accumulate bulk points. Both sources emphasize alternative methods to earn points, such as Qantas Health Insurance sign-up bonuses (140,000 points), the Qantas Wellbeing app for fitness-related rewards, and everyday spending through portals like Everyday Rewards (2:1 conversion) or utility providers like Red Energy and Origin Energy. The articles also highlight promotions for gift cards and fuel purchases as additional avenues to earn points, though they note that some deals may be scaled back due to reduced competition from credit cards. The consensus is clear: frequent flyers should diversify their points-earning strategies beyond credit cards to maintain rewards accumulation.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- The Reserve Bank of Australia (RBA) slashed interchange fees for credit cards by 63%, from 0.8% to 0.3%, effective October 1, 2023, following a debit/credit surcharge ban.
- This fee reduction will significantly reduce revenue for card providers, which currently fund airline points programs like Qantas Frequent Flyer.
- The RBA previously implemented a similar interchange fee cut in 2017, leading to reduced points earn rates (some by up to a half) and capped sign-up bonuses for credit cards.
- Qantas Health Insurance offers a sign-up bonus of 140,000 Qantas Points for new customers joining by April 9, 2024, with points awarded based on cover level over six months.
- Everyday Rewards at Woolworths, BIG W, and BWS converts points to Qantas at a 2:1 ratio, with promotions offering up to 10x points on specific products or spending thresholds.
- Red Energy and Origin Energy provide bonus points for switching electricity providers, with ongoing earnings of 2:1 points per dollar spent on electricity.
- Ampol and BP offer Qantas points for fuel purchases, allowing frequent flyers to earn points on essential expenses like petrol.
Points of Difference
Details reported by only one source:
- The Qantas Wellbeing app offers up to 1000 points in the first month for hitting 10,000 steps daily and meeting sleep targets, with faster earnings if a Qantas Health Insurance policy is held.
- Qantas Home Loans provides 100,000 points annually for the life of the loan as part of its product configurations.
- The article references Nicole Pedersen-McKinnon’s book *How to Get Mortgage-Free Like Me* and her social media presence for additional context.
Contradictions
Conflicting information between sources:
- No contradictions found between the two sources.
Source Articles
Forget credit cards. Here’s where to earn bulk Qantas points now
The RBA’s crackdown means frequent flyers can probably soon forget credit cards as a source of bulk points. So what should you do instead?...
Forget credit cards. Here’s where to earn bulk Qantas points now
The RBA’s crackdown means frequent flyers can probably soon forget credit cards as a source of bulk points. So what should you do instead?...