Frequent Flyer Credit Cards

Two things change on 1 October 2026. Card surcharges are banned on eftpos, Mastercard and Visa transactions, and the interchange fee cap on consumer credit cards drops from 0.80% to 0.30%. Interchange funds most of what rewards points are worth, and the RBA estimates the cut removes about $910 million a year from issuer revenue. Debit interchange also falls from 0.20% to 0.16%, and foreign-issued cards are capped at 1% from 1 April 2027.

Almost certainly, on Visa and Mastercard consumer cards. Issuers told the RBA during consultation they would respond to the lower interchange cap by trimming earn rates, reducing sign-up bonuses and raising annual fees. NAB has already confirmed earn rate changes on its Qantas and NAB Rewards cards from 1 October 2026. The UK and EU have run a 0.30% cap for years and neither has a rewards market resembling Australia's.

No. American Express operates a three-party closed-loop model and was not in scope of the RBA's March 2026 review. Amex is not subject to the interchange caps, and its no-surcharge position in Australia sits under a voluntary agreement with the RBA. The RBA flagged a separate consultation on three-party schemes, BNPL, mobile wallets and e-commerce platforms starting mid-2026.

Commercial card interchange stays capped at 0.80%. The Payments System Board concluded that cutting commercial interchange would push volume toward American Express, which already dominates Australian commercial card issuance. The 0.50% commercial benchmark is abolished on 1 October 2026, which means average commercial interchange could drift upward.

If a card's current bonus and earn rate suit you, applying before the changes locks in today's terms for at least the first year. Issuers can vary earn rates with notice, so nothing is permanent, but current sign-up bonuses are funded under the old interchange regime and later offers will not be. If you cannot clear the minimum spend without buying things you would not otherwise buy, the bonus is not free.

A frequent flyer credit card earns airline points on everyday spending, either directly into an airline account or into a bank program you can transfer out later. Direct-earn cards deposit Qantas Points or Velocity Points each statement period. Flexible-earn cards such as American Express Membership Rewards, ANZ Rewards or Westpac Altitude hold points in the bank's own currency until you choose a transfer partner.

Direct-earn cards give certainty, flexible cards give optionality. A Qantas-branded card sends every point to Qantas Frequent Flyer only. A flexible card lets you decide later between Qantas Points, Velocity Points, KrisFlyer miles, Asia Miles, Avios or a hotel currency. When a program devalues or an airline pulls partner availability, a flexible balance can be redirected. A direct-earn balance cannot.

Australian airline points are worth roughly 1 to 2 cents each in normal use, and considerably more on premium cabin redemptions. Economy redemptions on Qantas or Velocity typically sit near the bottom of that range once carrier charges are counted. A 100,000 point bonus is worth about $1,000 to an economy booker and $3,000 or more to someone booking long-haul business class on a partner airline.

There is no single answer, because the right card depends on your spending level and what you plan to book. The three variables that decide it are the earn rate on your everyday categories, the annual fee, and whether the sign-up bonus is reachable without manufactured spend. Divide the annual fee by the points you will earn in a year including the bonus to get a cents-per-point cost, then compare that to what a point is worth to you.

Qantas has broader domestic coverage and more ground earn partners. Velocity has cheaper access to some premium partner redemptions and a slower expiry clock, at 24 months versus 18 for Qantas. Velocity's partners include Singapore Airlines, Qatar Airways and Air Canada, which opens redemptions Qantas cannot match. Collecting both is legitimate, and a flexible points card defers the decision entirely.

Only when you use the benefits, and only when you count them at what they cost you rather than the issuer's stated value. A $450 travel credit is worth $450 to someone who books through that portal anyway and close to zero to someone who does not. Premium cards often win in year one because of the sign-up bonus, then lose in year three when the bonus is gone and the fee is not.

If you have an ABN and real business expenses, usually yes. Business cards frequently carry higher earn caps and larger sign-up bonuses, and from October 2026 they retain the 0.80% interchange cap that consumer cards lose. Several also earn on ATO payments, one of the few large unavoidable expenses that can be routed through a card.

Yes, if the points and benefits exceed the fee, and the model only works if you do pay in full. Rewards card purchase rates commonly sit above 20% p.a. Carrying a $3,000 balance for a year at 21% costs around $630 in interest, which exceeds the value of any points that balance earned. If you carry a balance in any month, a low-rate card without rewards is the better product.

Yes. Premium points cards sit at the top of most issuers' credit criteria. Expect a clean repayment history, no recent defaults, and enough assessable income to service the credit limit. Issuers assess the full approved limit as a liability regardless of the balance owing.

Some issuers accept applicants on long-term visas, usually with at least 12 months remaining. American Express accepts permanent residents and non-permanent residents with more than 12 months left on their visa, and excludes student visas. Criteria differ by issuer and change without notice, so check the current terms.

Most people are well served by two: one flexible points earner, and one card covering a category the first one misses, usually because of American Express acceptance gaps. Each additional card adds an annual fee, a credit limit counted against future borrowing capacity, and a hard enquiry on your credit file.

Most issuers impose an exclusion period. American Express excludes anyone who currently holds, or has held in the previous 18 months, any card product issued by American Express Australia Limited, not just the card being applied for. Bank exclusion periods vary between 12, 18 and 24 months and are often tied to the bank's rewards program rather than the individual card.

Usually not, because the exclusion applies to the primary card member. Being an additional or supplementary cardholder on a partner's account generally does not disqualify you from a bonus on your own new account. Wording differs between issuers, so confirm before applying.

Yes, applying for cards to collect bonuses is legal, and issuers manage it with exclusion periods rather than prohibitions. Every application creates a credit enquiry, and a cluster of enquiries reads badly to a mortgage assessor. Closing accounts quickly can flag internal risk models and lead to future declines. It works for people with stable income, no near-term borrowing plans and the discipline to pay in full.

Each application creates a hard enquiry that stays on your file for five years and typically causes a small temporary dip. One or two enquiries a year is unremarkable. Five in six months looks like financial stress to an automated assessor. Approved credit limits also reduce borrowing capacity, because lenders assess the full limit as a potential liability even at a zero balance.

Typically eight to ten weeks after you meet the minimum spend, not after approval. American Express publishes an 8 to 10 week window. Banks vary from one statement cycle to three months. Spend must post rather than merely authorise, so a transaction made on day 89 of a 90-day window may not count, and direct-earn points then move from issuer to airline on a separate monthly cycle.

Eligible purchases only. Annual fees, interest, late payment charges, cash advances, balance transfers, foreign currency conversion fees and traveller's cheques are excluded across almost every issuer. Government payments are often excluded or earn at a reduced rate. Many issuers also treat BPAY transactions as ineligible, which catches people planning to hit the minimum with one large bill payment.

During the application, or afterwards through your issuer's online banking under the rewards or program section. Most banks ask for your Qantas Frequent Flyer number at application. If you skipped it, add it before your first statement closes. Points earned before the accounts are linked are usually held by the bank and released once linking completes rather than lost.

Direct-earn points usually arrive within a week or two of statement close, on a monthly cycle rather than transaction by transaction. Flexible bank points typically post at statement close, then take one to three business days to reach an airline account when transferred.

Qantas Points expire after 18 months without an eligible earn or redemption. Velocity Points expire after 24 months. Both clocks reset on qualifying activity, including small partner earns such as a Woolworths shop or a flybuys conversion. Family transfers and Qantas Business Rewards transfers do not count for Qantas. Velocity treats pooled points and family transfers as short term activity, extending expiry by about a month rather than resetting 24. American Express Membership Rewards points do not expire while the account is open and in good standing.

ATO payments earn on some business cards, usually at a reduced rate. Rent and mortgage payments generally do not earn directly. Third-party payment services will process rent, mortgage, tax and supplier invoices on a card for a fee, typically 1.0% to 2.5%. At a 1.5% fee and 1 point per dollar you are buying points at 1.5 cents each, which is a poor trade for economy redemptions and defensible only against a specific premium cabin booking. Fees are generally not tax deductible for personal spending.

You probably hit a points cap. Most Australian cards apply a tiered structure where the headline rate applies up to a monthly or annual threshold and a reduced rate applies after it. Some caps reset each statement period, others each calendar year. Cards also apply lower rates to government payments, and the definition of government body is broader than most people expect, covering council rates, some utilities and some education payments.

Cash advances, balance transfers, interest, fees, gambling transactions and, on most cards, BPAY. Buying foreign currency, loading travel money cards and purchasing gift cards from certain merchants are commonly excluded or coded as cash advances, which carry interest from day one with no grace period.

Most do, usually between 2% and 3.5%, and it applies to any transaction processed overseas even when billed in Australian dollars. A small number of rewards cards waive it. Always decline dynamic currency conversion at overseas terminals, because paying in AUD lets the merchant set the exchange rate and their rate is worse than your card's.

Long-haul business and first class redemptions booked on partner airlines through the right program. That is where cents-per-point value is highest, often three to four times an economy seat. The worst uses are merchandise from a rewards store, gift cards and cash back. Statement credits typically value points at around 0.5 cents, less than half what a well-planned flight redemption returns.

Transfer to an airline program first, then search award availability in that program. Transfers are almost always one-way and irreversible, so confirm the seat exists before moving points. The safe workflow is to find the award seat, confirm the exact points required and the carrier charges, check the transfer ratio and transfer time, then move only what you need.

Instant to three business days for most Australian programs. American Express transfers to Qantas and Velocity are typically same day. Some international partners take longer and a small number process in weekly batches. If an award seat is available and you need to transfer, you are betting the seat will still exist when the points land.

Airline programs allow family transfers with restrictions, but bank programs generally do not allow transfers to another person's airline account. Qantas Family Transfer and Velocity Family Pooling both require nominated family members and both carry rules that make them poor tools for avoiding expiry. Most bank programs require the airline account to be in the cardholder's name.

Direct-earn points are already in your airline account and stay there. Bank points usually disappear when the account closes. Transfer any flexible balance to an airline or hotel partner before you cancel and allow time for the transfer to complete. Points from your final statement cycle may not have posted when you request closure.

Yes, and most issuers refund the fee on a pro-rata basis if you close within a set window. Check whether the sign-up bonus terms require a minimum holding period. Several 2026 offers pay the second tranche of bonus points only after 12 or 15 months, and closing early forfeits it.