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 of credit card interchange fees by 63%, from 0.8% to 0.3%, which will significantly impact Qantas Frequent Flyer points earnings. This follows a ban on debit/credit surcharges and mirrors the 2017 RBA move that led to reduced points earn rates, capped bonuses, and stretched sign-up incentives. Credit card rewards, once a primary method for earning bulk points like 200,000 for holidays, are now less viable due to lower interchange revenue for airlines. The articles highlight alternative ways to earn Qantas points, such as Qantas Health Insurance (140,000-point sign-up bonus), the Qantas Wellbeing app (1,000 points/month for fitness goals), and partnerships with retailers like Woolworths (2:1 point conversion with promotions) and energy providers (20,000+ points annually from electricity bills). Petrol stations like Ampol and BP also offer points on fuel purchases. Both sources emphasize that frequent flyers must adapt strategies away from credit cards to maintain points accumulation, with Qantas Frequent Flyer’s broad reach (covering 50% of Australians) making it a key focus for alternative earning methods.
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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 similar ban on debit/credit surcharges.
- The RBA’s 2017 interchange fee reduction led to reduced points earn rates (some by up to 50%), capped sign-up bonuses, and bonus points spread over two years.
- Qantas Frequent Flyer covers 50% of the Australian population and offers the most on-the-ground points accrual options among Australian frequent flyer programs.
- Qantas Health Insurance provides 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 (Woolworths, BIG W, 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 offer bonus points (thousands) for switching providers, plus ongoing 2:1 points conversion for electricity spending, potentially earning 20,000 points annually.
- Ampol and BP petrol stations allow earning Qantas points on fuel purchases, mitigating the cost of rising fuel prices.
Points of Difference
Details reported by only one source:
- The Qantas Wellbeing app offers up to 1,000 points in the first month for hitting 10,000 steps daily and meeting sleep targets, with faster earnings if paired with a Qantas Health Insurance policy.
- Qantas Home Loans offers 100,000 points annually for the life of the loan as part of its product configurations.
- The article includes a direct quote-like sentiment: 'you often see bonus points paid across two years now, as a customer loyalty play.'
- The author, Nicole Pedersen-McKinnon, is mentioned as the writer of *How to Get Mortgage-Free Like Me* and her social media handles are referenced (though not detailed).
- The article explicitly states: 'it’s time to implement alternative points collection strategies rather than credit cards to stay on board.'
- No additional unique details beyond those shared with THEAGE; the content is nearly identical word-for-word.
Contradictions
Conflicting information between sources:
- No contradictions found between sources; both articles are nearly identical in content and factual claims.
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?...