Impact of RBA surcharge ban on Qantas points earnings and alternative strategies

Consensus Summary

The core story revolves around the Reserve Bank of Australia’s ban on debit and credit surcharges effective October 1, 2023, which significantly reduces interchange fees for credit card transactions. This change, a 63% cut from 0.8% to 0.3%, threatens the revenue model that previously funded airline loyalty points, particularly for Qantas Frequent Flyer. Both sources highlight that the 2017 interchange fee reduction led to reduced points earn rates and capped sign-up bonuses, signaling a similar impact is likely now. The articles emphasize that credit card rewards are becoming less viable for bulk points accumulation, urging frequent flyers to explore alternative strategies. Qantas Health Insurance offers a substantial 140,000-point sign-up bonus, while everyday spending on groceries, utilities, and fuel through programs like Everyday Rewards and Qantas Shopping can now be a more reliable way to earn points. Both sources also note that Qantas Home Loans and the Qantas Wellbeing app provide additional avenues for earning points, though the latter is only mentioned in one source. The consensus is clear: credit card rewards are diminishing, and savvy travelers must adapt by leveraging non-card-based earning opportunities to maintain their points balances.