Card payment sucharges banned in Australia from 2026

[Aeryn]

Yep so proof UK has significantly lower sign-up bonuses, lower earn rate and offers passes that Qantas has made worthless fo actual frequent flyers who get lounge access anyway.

Card providers here are going to need to offer something better or people will just move to no fee CCs or debut cards.

I know a few places that already give a discount for cash and pay traveller staff in cash.
They don’t show these transactions in the books.

Its very common and why tgere is more to be gained by limiting cash usage than targetting reward CCs.

 

[Spacetravel]

Goodbye credit card frequent flyer point cash cow. I wonder where the point earning game will move to next.

 

[justinbrett]

The media release indicates that three-party card networks (which AMEX is) will start being reviewed in mid-2026 (reflecting that the RBA didn't get powers to regulate AMEX and other three-party card networks until late last year). Hopefully, we'll see action in 2027.

I'm reading that AMEX is also exempt from the UK's interchange cap (which is also 0.3%, same as our new cap) and are much higher.

I guess that's why Amex can be hard to use in some parts of Europe (almost impossible in Ireland)

 

[Rich]

Its very common and why tgere is more to be gained by limiting cash usage than targetting reward CCs.

They are not targeting rewards CCs they are targeting unnecessary CC fees. Our bonus points are just fodder.

 

[Aeryn]

They are not targeting rewards CCs they are targeting unnecessary CC fees. Our bonus points are just fodder.

The announcement specifically mentions they targetting fees because they fund rewards programs which benefit only a subset of CC holders.

 

[MEL_Traveller]

I’m haply with the removal of fees and an all-inclusive price.

According to a post elsewhere on AFF passengers on Virgin are finding their credit card fees aren’t being refunded for cancelled flights to Doha.

All-inclusive will mean the full price of a product paid will be refunded if the service isnt provided.

 

[Doctore1003]

I'm reading that AMEX is also exempt from the UK's interchange cap (which is also 0.3%, same as our new cap) and are much higher.

I guess that's why Amex can be hard to use in some parts of Europe (almost impossible in Ireland)

Amex’s strategy in Australia the past decade+ has been to increase merchant acceptance. It has lowered fees as a result, even though it hasn’t had to legally. Can’t see them changing course. Expect Amex to also reduce benefits over time.

 

[Aeryn]

I’m haply with the removal of fees and an all-inclusive price.

According to a post elsewhere on AFF passengers on Virgin are finding their credit card fees aren’t being refunded for cancelled flights to Doha.

All-inclusive will mean the full price of a product paid will be refunded if the service isnt provided.

That seems like more of a Vigin issue than CC issue. When ive had refunds on my CCs its always included full amount i.e surcharges have also been returned.

When i cancelled my OWA recently Qantas returned the full cash component inclusive of CC fee.

 

[WilsonM]

Coming soon to an Australian bank near you:

View attachment 502128

Ooof. A max of 25k Avios for non-AMEX is rough...

 

[HMcM]

Easy to almost eliminate in a cashless society. Cash funds crime (drugs, illegal cigarettes, illegal gambling, off book trades, un taxed staff), if your money has to go via a regulated financial institution then you cant hide income from tax. If everyone paid the tax they should, tax rates could be lower overall.

Until people find a cash replacement that can be bought and then traded off the record. Gold, silver, bitcoin, cigarettes. All can be bought for cash and then traded for other things off the record depending on the circumstances.

A world capable of having the oversight to see every free transaction under the guise of stopping tax dodging also has the power to do a whole lot of evil with that visibility.

 

[Happy Dude]

My biggest expenses i.e groceries and health insurance have no surcharges for Amex so not much will change from points earning perspective but costs will go up for all.

Not really. You're already paying for any fees at those places even if you use Visa/MC. So any increase in price as a response to this is opportunistic or in response to something else.

Some businesses will simply price themselves out of customers as they look for reasons to not spend in a cost of living crisis.

 

[MEL_Traveller]

That seems like more of a Vigin issue than CC issue. When ive had refunds on my CCs its always included full amount i.e surcharges have also been returned.

When i cancelled my OWA recently Qantas returned the full cash component inclusive of CC fee.

It is a VA thing.

QF refunds the full purchase price including any credit card fees.

VA does not.

So the banning of fees will mean an all-inclusive price and pax getting a full refund.

 

[Aeryn]

Nordic countries have extremely low cash suage, and lower rates of tax evasion and crime.

Whilst organised crime might move to crypto etc, your average person buying take away from local chinese restaurant or cigarettes from conveinience store is not going to buy gold bullion or barter for goods - that trade will be forced on books or cease to happen. That can only be good.

Its typical that we get a blunt instrument because the people whinging about surcharges clealery didnt want to use the "free" cash alternative.

 

[LondonAussie]

Amex currently earns 1.25 - 2.25 QFF points per $1, plus referral bonuses, ability to double dip via QFF shopping and the travel credit being equal to card annual fee makes it free. The UK card has annual fee and only 1 Avio per GPB (which is only 1 point per AU$2) so lesser offer me thinks.

BA Amex has the 241 voucher which gives 50% off the Avios needed for rewards flights and opens up rewards availability - the equivalent of a J Classic Rewards seat is available to BA Amex holders if there’s a Business Sale fare on the flight. Amex also run offers where you earn BA Tier Points (the equivalent of Status Credits) for meeting certain spend targets. UK cards are about much more than just the points.

 

[CaptJCool]

Nordic countries have extremely low cash suage, and lower rates of tax evasion and crime.

Whilst organised crime might move to crypto etc, your average person buying take away from local chinese restaurant or cigarettes from conveinience store is not going to buy gold bullion or barter for goods - that trade will be forced on books or cease to happen. That can only be good.

Its typical that we get a blunt instrument because the people whinging about surcharges clealery didnt want to use the "free" cash alternative.

Our end of cash businesses began with GST
by then Woolies and Coles bought into the indie fuel retailers as the tuck shop was a big profit ripe for the picking…. The corner cash only delis expired in large numbers

Add on the data exchange with the ATO accessing CC card merchant data … harder to escape

 

[justinbrett]

BA Amex has the 241 voucher which gives 50% off the Avios needed for rewards flights and opens up rewards availability - the equivalent of a J Classic Rewards seat is available to BA Amex holders if there’s a Business Sale fare on the flight. UK cards are about much more than just the points.

Same could be said for the QF card here.

Essentially no anual fee, extra point per dollar on QF etc

 

[LondonAussie]

Same could be said for the QF card here.

Essentially no anual fee, extra point per dollar on QF etc

I much prefer the BA Amex benefits of extra reward availability and half-price redemptions. Compared to just being thrown more QFF points that I’ll never find Classic Reward availability to use on.

Sure the AU cards also give you a $450 travel credit and 2 lounge passes, but that’s pretty worthless to me in comparison.

 

[Rich]

The announcement specifically mentions they targetting fees because they fund rewards programs which benefit only a subset of CC holders.

They mentioned this but it didn't seem the primary driver. Regardless, it is the right outcome. IMO.

 

[am0985]

Business cards still having the same interchange fee is interesting.

I do wonder if there'll be an expanded range of these available to people with an ABN. Or whether the requirements for a "business" card might become looser and instead they become a premium CC for customers still interested in the points?

 

[justinbrett]

I much prefer the BA Amex benefits of extra reward availability and half-price redemptions. Compared to just being thrown more QFF points that I’ll never find availability to use. The $450 travel credit and a 2 lounge passes doesn’t do much for me either.

Apples and oranges

If you have QF status it’s good, and Points Club helps you get that status. Platinum seat releases means I’m always points poor, never had a problem spending points.

Geography is likely the deciding factor between the two, not the Amex cards.