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 by 63%, which will significantly cut revenue for card providers and likely lead to reduced Qantas Frequent Flyer points rewards. Both sources agree this follows a similar 2017 crackdown that slashed points earn rates, capped bonuses, and extended sign-up bonuses over two years. Credit card rewards, including travel insurance and lounge passes, may also face cuts. The articles emphasize that credit cards are no longer the primary way to earn bulk Qantas points, with alternatives like Qantas Health Insurance (140,000 points for new sign-ups), Everyday Rewards (2:1 conversion from Woolworths/BIG W), and utility/gasoline purchases now recommended. Both highlight Qantas Shopping portals and the Qantas Wellbeing app as additional strategies, though the latter’s specifics are only detailed in THEAGE. The consensus is clear: frequent flyers must adapt to non-card methods to maintain points accumulation, with everyday spending becoming a key strategy.
✓ 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 similar ban on debit/credit surcharges.
- Qantas Frequent Flyer program covers approximately 50% of the Australian population, making it the largest scheme in the country.
- The RBA’s 2017 interchange fee reduction led to reduced points earn rates (some by up to a half), capped sign-up bonuses, and bonus points spread over two years.
- 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 (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 provide bonus points for switching electricity providers, with ongoing earning at a 2:1 conversion rate for electricity spending.
- Ampol and BP offer Qantas points for fuel purchases, allowing earners to accumulate points on essential expenses.
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 earning if a Qantas Health Insurance policy is held.
- Qantas Home Loans offers 100,000 points annually for the life of the loan, described as an interesting points/product configuration.
- 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?...