Credit card points under threat

[opusman]

RBA changes set to cut credit card frequent flyer rewards

The RBA really can't resist messing with credit cards. After allowing surcharging in the first place which did nothing except increase costs for everyone, now they want to cut reward programs.

 

[andye]

I'd be amazed if the meddling makes any positive contribution to the retail economy for shop owners or consumers

 

[Mattg]

I have no issue with the RBA banning unreasonable credit card surcharges. But they should leave interchange fees alone.

 

[Hammando]

I wonder what they will cut the points earn to on the premium cards?
Was citi's recent attempt to lower transfer rate a pre-emptive strike?

 

[Buzzard]

Another nail in the points earn coffin :evil:

It seems as though the gravy train is slowly being derailed.

 

[homemade]

Another nail in the points earn coffin :evil:

It seems as though the gravy train is slowly being derailed.

loyalty schemes are a gravy train for airlines and banks. neither will give up without a fight, and even if interchange fees change I'm sure both will be creative in finding solutions or other avenues.

 

[turtlemichael]

loyalty schemes are a gravy train for airlines and banks. neither will give up without a fight, and even if interchange fees change I'm sure both will be creative in finding solutions or other avenues.

I hope you are right. It will be a sad day if I have to actually start flying to earn frequent flier points.

 

[Buzzard]

loyalty schemes are a gravy train for airlines and banks. neither will give up without a fight, and even if interchange fees change I'm sure both will be creative in finding solutions or other avenues.

I hope so but when you see points being capped, earn now 0.75 instead of 1 per dollar on some cards, ATO derailed, I just wonder how low will we go?

 

[Deleted member]

Mane there will be a points / No Points option to keep the regulator happy?

 

[trippin_the_rift]

Dumb idea RBA.
Banks will increase merchant costs and create their own side deals, costing consumers even more.
Banks will then seriously push intl purchases, which will hurt Australian businesses even more.

I swear that 90% of decisions that come out of big companies/including government could be SERIOUSLY improved to genuinely benefit everyone with a little extra thinking. #ENTPOWER

How about no capping, and ban any type of surcharging/convenience fee. Force merchants to absorb the cost/increase the cost, and with no caps on interchage rates - banks can offer MORE REWARDS to push MORE consumers to use credit cards! Airlines/Coalition programs will generate MORE revenue and thus attract MORE business activity in Australia - employing more people and stimulating more business.

Instead, the RBA is pushing business AWAY from Australian merchants and encourage CASH purchases.
I see no logic.......

 

[desafinado74]

Bunch of idiots these RBA people.
Many people will re consider their choice of credit cards if this happens.
If only Australia was like the US, where you can easily earn frequent flyer points via credit card spending.

What are the chances of these proposals becoming the law ?
I wonder if the banks and credit card companies will oppose it ?
Will these proposed changes affect AMEX cards that are directly issued by AMEX ?

 

[Jay81]

Banks and Airlines will come up with something. They can't afford to lose this lucrative source of income.

 

[basso]

It seems that people have lost sight of the fact that this was all preceded by a government enquiry into financial services. That inquiry raised issues and made recommendations. The government, RBA and ACCC are just working through the issues raised, and considering the recommendations, etc.

 

[JohnK]

It's all a game. There will be new rules. Maybe not as good as the old rules but people will learn to make the new rules work.

Personally I think it is a good idea. Points sign on bonuses have been getting out control while interest rates for those carrying balances remain at their highest. Also with new caps in place we may see some decent award availability again for those of us earning points via flying.

Just my 2 cents worth.

 

[Pleb Status]

Ban all CC surcharges and cap the interchange fee at cost + 10%. Most of these fees are remnants from before the full computerisation of the processing etc when costs were a lot higher (remember the old handwritten CC vouchers where they would put your card in the click clack device). I doubt the actual cost of moving the money around etc is any more than 0.10-0.15% plus a margin for fraud etc.

I would like to see the RBA have a look at the foreign exchange fees that the banks tack on after the Mastercard/Visa spread is applied. There is no justification to charge any fee at all as the Forex rate is variable until the charge is fully processed (so currency risk is bourne by the customer).

 

[trippin_the_rift]

Ban all CC surcharges and cap the interchange fee at cost + 10%. Most of these fees are remnants from before the full computerisation of the processing etc when costs were a lot higher (remember the old handwritten CC vouchers where they would put your card in the click clack device). I doubt the actual cost of moving the money around etc is any more than 0.10-0.15% plus a margin for fraud etc.

I would like to see the RBA have a look at the foreign exchange fees that the banks tack on after the Mastercard/Visa spread is applied. There is no justification to charge any fee at all as the Forex rate is variable until the charge is fully processed (so currency risk is bourne by the customer).

Wow you really don't want frequent flyer points by using a credit card do you?

 

[Buzzard]

May the credit card points fairy live a long and fruitful life.