Card payment sucharges banned in Australia from 2026

[MooTime]

It's become normalised over many years with the same process.

Just as it's normalised in UK with very few documents submitted over the years.

Every country is different.

 

[transpactraveller]

How has that become normalised as acceptable in Australia? Most credit card applications in the UK are instantly approved with no documents required.

Because it's what our government requires banks to do for all applications (apparently to "protect" people from getting into debt, unless it's gambling debt...)

Anyway, the Australian credit card legislation forces banks to verify proof of income, and they can only approve applicants who could comfortably repay the full credit limit within 3 years.

Most other countries allow banks to instantly approve people with a good credit rating (ie aren't already in debt) and only assess whether you could make the minimum repayments, not pay back the full debt.

 

[Rembrandt]

I stopped getting AU credit cards because the fees are high and the signup process is ridiculous with so many questions and then all the documentation you need for proof of income like having to upload bank statements and payslips. I’ve never had to do that for any of UK cards I’ve applied for.

I've only ever needed to provide my pay statements e.g. 3 months worth. However, I'm an Australian citizen with a good full time salary so I guess I'm treated differently to someone that may be self employed, works part time, casual or even permanent resident.

 

[Doctore1003]

Is this the first round of cuts?





From: Credit card rewards points slashed up to 50% ahead of surcharge ban

 

[MEL_Traveller]

well, I guess consumers will vote with their feet?

If surcharges were paying or subsidising all these points opportunities, better to get rid of them.

 

[Mr_Orange]

The joys of a credit card with no annual fee, no points, no nothing actually. It's so refreshing and stress free.

 

[LondonAussie]

I never understood why Australian credit cards have such high fees. I’ve got 5 UK credit cards, none have fees.

 

[Mr_Orange]

I never understood why Australian credit cards have such high fees. I’ve got 5 UK credit cards, none have fees.

The complete and utter lack of competition means that the Big 4, who own most of the smaller players, can do as they please and the Australian Public can go hang as far as they care.

 

[clifford]

Australia is a cash cow, always has been, and its residents seem generally happy to go along with it. So why change the formula?

 

[dajop]

I never understood why Australian credit cards have such high fees. I’ve got 5 UK credit cards, none have fees.

In Singapore standard for a miles fee earning card is $180+GST annual fee. For most cards you either pay that and get 10,000 KF miles or ring or go into app and request “annual fee waiver” (automated process) and get no miles. Only one card of mine doesn’t have that, so I just pay the fee - 2c/mile which is ok (and 2 Priority Pass visits as well). There are other rebate focussed cards (no miles) that have lower fees and premium cards that come with all sorts of benefits that are much higher.

 

[Matty F]

Some of these new earn rates are paltry. It makes you wonder why they don't just cut the programs altogether and redirect the cost of running the program

If surcharges were paying or subsidising all these points opportunities, better to get rid of them.

Hard agree, most people never realised how the excess fees paid at the cash register were being used by the banks to fund points programs.

 

[MEL_Traveller]

Some of these new earn rates are paltry. It makes you wonder why they don't just cut the programs altogether and redirect the cost of running the program



Hard agree, most people never realised how the excess fees paid at the cash register were being used by the banks to fund points programs.

Unfortunately I suppose this won’t flow through to cheaper prices to customers… merchants are likely to up their prices to include the new - albeit reduced - surcharges. And in all likelihood the price increase will be more that the surcharge anyway.

But that might be a tiny boost to businesses and their bottom line.

 

[Matty F]

Unfortunately I suppose this won’t flow through to cheaper prices to customers… merchants are likely to up their prices to include the new - albeit reduced - surcharges. And in all likelihood the price increase will be more that the surcharge anyway.

But that might be a tiny boost to businesses and their bottom line.

Im okay with that, I just want one price when I pay for something

I spent the first half of the year traveling overseas where I was paying listed prices everywhere, then came home and really noticed all the surcharges - especially painful on hotels

Very happy for these fees to go and have them priced into goods the same way all other CODB prices are. Merchants still need to price appropriately within other market parameters to stay competitive etc

It’s not like they weren’t trying to maximize prices before the surcharge ban

 

[HMcM]

Is this the first round of cuts?

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From: Credit card rewards points slashed up to 50% ahead of surcharge ban

And people here were cheering for the changes. The changes are going to be objectively bad for those of us in the know.

 

[Kangol]

And people here were cheering for the changes. The changes are going to be objectively bad for those of us in the know.

It will be a difficult lesson for those who didn't realise that when a money tap stops flowing, changes happen.

 

[Be.au]

Unfortunately I suppose this won’t flow through to cheaper prices to customers… merchants are likely to up their prices to include the new - albeit reduced - surcharges. And in all likelihood the price increase will be more that the surcharge anyway.

But that might be a tiny boost to businesses and their bottom line.

Don't forget that merchants are also able to offer discounts for paying cash.

 

[Happy Dude]

And people here were cheering for the changes. The changes are going to be objectively bad for those of us in the know.

All I "know" is that points earning for everyday spend for non-business owners has not been a particularly lucrative source of points for quite a while. It's a new dent in an already dented car. The devaluations in transfers (by the banks) and increased redemption rates and co-payments (by the airlines) have been far more damaging to the non-business spenders.

But it's also terrific for bills like land tax and rates that can't be paid with Amex or paypal (in my case) and have Visa/MC card fees and that often don't earn points anyway. Or my golf club, where I'll now get some points instead of none because the surcharge means I choose a cheaper way to pay. Maybe they'll stop taking credit cards? But those bills aren't going to increase like a coffee shop might so there's something to cheer about. Hopefully Woollies and Coles can come to the party with more frequent offers on pre-paid credit and EFTPOS cards.