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 impact Qantas Frequent Flyer rewards. This follows a ban on debit/credit surcharges and mirrors the 2017 RBA crackdown that led to major cuts in points earn rates and sign-up bonuses. Credit card rewards, including travel insurance and lounge passes, may also face scaling back. The articles highlight that credit card points are becoming less viable for bulk earnings, prompting frequent flyers to explore alternative methods. Qantas offers several non-card-based strategies, such as its Health Insurance sign-up bonus (140,000 points), the Qantas Wellbeing app (earning points for fitness activities), and partnerships with retailers like Woolworths (2:1 point conversion with promotions). Utilities and fuel purchases at specific providers (Red Energy, Origin Energy, Ampol, BP) also provide ongoing point accumulation. The consensus is clear: while credit cards remain useful, their role in bulk points accumulation is diminishing, necessitating a shift to ground-based earning opportunities.
✓ 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 dramatic cuts in points earn rates (some by up to a half) and slashed 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 earning at a 2:1 conversion rate for electricity spend.
- Ampol and BP offer Qantas points for fuel purchases, allowing frequent flyers to earn points on everyday 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 paired with a Qantas Health Insurance policy.
- 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.
- The author notes that gift card promotions through Everyday Rewards or Qantas Shopping can offer up to 20x points on certain occasions.
Contradictions
Conflicting information between sources:
- No contradictions found between the two sources as they are nearly identical in content.
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?...