Major changes coming to credit card rewards

From October, the Reserve Bank will change how banks make money from credit cards by eliminating surcharge fees and reducing interchange fees that fund rewards programmes. Banks are expected to scale back frequent flyer points earnings, reduce sign-on bonuses, potentially increase annual fees and interest rates, and introduce caps on points per dollar spent. Financial experts recommend reading bank notification letters arriving from August, using existing points sooner rather than later on high-value items like flights, and analysing whether card rewards outweigh the costs in fees and interest.See omnystudio.com/listener for privacy information.