The prediction is coming true
For the past year, the common wisdom in Australian loyalty has been that the banks would follow the UK’s path once interchange fell: cut the generosity of payment-funded credit card rewards and raise the price of the cards that still carry them. Qantas Frequent Flyer and Velocity credit cards, the two most widely held reward products in the country, were expected to be less generous and be more expensive at the same time.
That prediction is now coming true. NAB has cut redemption value across its white-label card brands. From 1 October 2026, a $100 gift card will cost many more points after a 62 per cent devaluation. Its Virgin Money cards are also being repriced: the Velocity Flyer’s annual fee rises with a lower earn rate, and the Velocity High Flyer’s fee rises with earn rates cut roughly in half.
ANZ has also moved, changing terms for new customers immediately rather than waiting for the October deadline. The sign-up bonus on its Frequent Flyer Black card has been cut from 130,000 Qantas Points to 80,000, and the $200 cashback offer has been removed entirely. The Platinum card’s bonus has fallen from 75,000 points to 40,000, with its $100 credit also axed. Commonwealth Bank has made a similar move on its own Awards program, closing off most of its transfer partners and leaving Velocity as the only remaining option.
Bank-funded credit card rewards in Australia are getting smaller and more expensive. What happens next, and who decides?
Published & Provided By Ellipsis & Co
