Credit card surcharges end today but customers will pay in other ways
There are some big changes coming for credit and debit card holders, but not all of it is good news. Here's what you need to know and how it could affect you.
Credit card surcharges will end on October 1, saving Australian consumers about $1.6 billion annually, according to Reserve Bank of Australia reforms. However, experts warn that credit card holders may face other financial impacts. The reforms involve reducing interchange fees that stores pay to banks, prompting banks to compensate by altering card perks and raising fees.
Financial literacy expert Nicole Pedersen-McKinnon notes banks are decreasing credit card perks, like points and free travel insurance, while increasing interest rates and annual fees. Customers should carefully review any email notifications from their banks regarding changes to their credit card products, as these changes can be significant.
Senior financial planner Rebecca Pritchard encourages consumers to reassess whether their credit card is still financially beneficial, as banks are implementing changes to keep credit card products viable. Pritchard advises consumers to consider alternatives to credit card rewards, such as supermarket rewards schemes, petrol loyalty programs, and other cashback options.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
