Card Surcharges End, But Travellers Could Lose Valuable Credit Card Perks

October 1, 2026

Qantas planes on left and person using a credit card online on right

Paying for a cruise, flight or hotel by card just became a little cheaper in Australia.

From 1 October 2026, Visa, Mastercard, American Express and eftpos have introduced rules preventing businesses from adding a surcharge when customers pay using their credit, debit or prepaid cards.

But there's another side to the changes that Australian travellers need to know about.

Major banks are also changing the benefits attached to some credit cards, including removing or significantly reducing complimentary travel insurance, cutting frequent flyer point earn rates and changing rewards programs.

And from December, another popular points-earning opportunity will disappear when the Australian Taxation Office stops accepting credit-card payments altogether.

Some of these changes have already happened. Others begin today or over the coming months.

For travellers who have spent years relying on their credit card for travel insurance or frequent flyer points, there's one particularly important message:

Don't assume the benefits you had on your last trip will still be there for your next one.

Card surcharges end in Australia from 1 October

Australia's card payment rules changed on 1 October following a major review of merchant card payment costs and surcharging by the Reserve Bank of Australia.

The RBA removed rules that had previously prevented designated card networks from imposing "no surcharge" rules.

Visa, Mastercard and eftpos have subsequently introduced rules preventing businesses accepting their cards from adding a surcharge simply because a customer chooses to pay using their credit, debit or prepaid cards.

American Express has also introduced no-surcharge rules from 1 October.

For travellers, that means the familiar percentage added at checkout simply because you're paying for a flight, cruise, hotel or other purchase using one of these cards should disappear.

There are, however, some important exceptions.

The changes apply specifically to card payment surcharges.

They don't prevent businesses from charging legitimate booking fees or service fees, and weekend and public holiday surcharges are also unaffected.

So seeing an additional fee on a travel booking after 1 October doesn't automatically mean a business is breaking the new rules.

Making a travel booking online with a credit card

Why are credit card benefits changing?

The removal of surcharges forms part of a much broader overhaul of Australia's card payment system.

From 1 October, the RBA has also introduced new interchange fee caps.

Consumer credit card interchange fees are now capped at 0.30% of the transaction value, while commercial credit cards have a maximum cap of 0.80%.

Interchange fees are paid between financial institutions when card transactions are processed and form part of the economics behind credit card products.

Banks warned during the RBA's review that reducing interchange revenue could affect rewards programs and other cardholder benefits.

That doesn't mean the RBA has instructed banks to cut travel insurance or frequent flyer points.

Those remain commercial decisions made by individual financial institutions, and different banks are responding in different ways.

But for Australian travellers, the timing of substantial changes across several major credit-card programs makes now a particularly good time to check exactly what your card still offers.

NAB has already removed travel insurance from several cards

Some of the biggest travel insurance changes actually arrived months before the new surcharge arrangements took effect.

From 15 May 2026, NAB removed complimentary international and domestic travel insurance and Australian rental vehicle excess insurance from several cards.

Affected products include the:

NAB Rewards Credit Card
NAB Flybuys Rewards Credit Card
NAB Low Rate Platinum Credit Card
NAB Velocity Rewards Premium Credit Card
NAB Premium Credit Card
NAB Low Fee Platinum Credit Card

Other NAB cards retained travel insurance but had their maximum international travel period significantly reduced.

For the NAB Qantas Rewards Premium Credit Card and NAB Qantas Plus Credit Card, for example, international travel insurance was reduced from up to three consecutive months to up to 30 consecutive days for claimable events from 15 May.

The NAB Qantas Rewards Signature Credit Card retained its complimentary travel insurance under those May changes.

That difference could be particularly important for Australians taking longer cruises or extended overseas trips.

Someone taking a seven-night holiday may fit comfortably within a 30-day policy period.

Someone taking a long cruise with additional time overseas before and afterwards may not.

Image: rebabor

CommBank changed its insurance and rewards program this week

CommBank introduced significant credit-card changes from 29 September 2026.

The longstanding CommBank Awards program has closed, with eligible customers instead able to earn CommBank Yello points.

Existing unredeemed Awards points are being converted to Yello points for eligible customers.

CommBank has also changed the insurance included with its credit cards, with the exact impact depending on the card held.

Some products have had benefits removed or reduced, while international travel insurance on eligible cards is now underwritten by Allied World Assurance Company and arranged through Cover Genius.

This makes it particularly important for CommBank customers to check the updated insurance attached to their exact card rather than relying on what was covered previously.

ANZ has major travel insurance changes coming

ANZ customers have a little more time, but substantial changes are on the way.

The bank is introducing three different levels of complimentary insurance across eligible Platinum and Black credit cards, with the first phase beginning on 9 December 2026.

Depending on the card, changes can include:

shorter maximum periods of international travel cover
lower trip cancellation limits
lower personal liability limits
removal of individual insurance benefits
complete removal of complimentary international travel insurance from some cards.

A second phase takes effect from 24 March 2027.

For example, the ANZ Rewards Black credit card will no longer include complimentary international travel insurance, domestic travel insurance or Australian rental vehicle excess insurance from that date.

The ANZ Frequent Flyer Black card will retain international travel insurance, but its maximum international cover period will reduce from six consecutive months to two months from 24 March.

Its trip cancellation limit will also fall from $20,000 to $10,000 per cardholder or spouse, while personal liability cover will reduce from $3 million to $1 million per event.

ANZ is recommending customers review the updated insurance documentation to understand how their individual card is affected.

Westpac insurance changes start today

Westpac has also introduced changes to its credit card complimentary insurance policy from 1 October 2026.

The exact changes depend on the card held, making it important for customers to check the latest policy before relying on complimentary insurance for an upcoming trip.

Westpac is specifically directing customers to review the updated policy documentation as part of their overseas travel preparations.

The bank has also made changes to some credit-card fees, rates and rewards arrangements around the same time.

Again, the important point for travellers isn't that every Westpac card has suddenly lost travel insurance.

It's that previous cover shouldn't be assumed to remain unchanged simply because you're still holding the same card.

Frequent flyer points are changing too

Travel insurance isn't the only perk being affected.

Frequent flyer and rewards programs are also being reworked.

NAB introduced new Qantas earning rates from 1 October.

Previously, the NAB Qantas Rewards Signature Credit Card earned one Qantas Point per $1 on the first $5,000 spent during a statement period, followed by 0.5 points per $1 from $5,001 to $20,000.

From 1 October, that changes to 0.75 Qantas Points per $1 on the first $3,000 and 0.25 Qantas Points per $1 from $3,001 to $15,000.

The NAB Qantas Rewards Premium Credit Card is also reducing its standard earning rate.

There are some new opportunities to earn bonus points on international spending, but the value of the changes will depend heavily on how each cardholder uses their card.

NAB Rewards customers transferring points to Velocity are also seeing a significant change.

Until 30 September, 2 NAB Rewards Points converted to 1 Velocity Point.

From 1 October, it takes 3 NAB Rewards Points to receive 1 Velocity Point.

Image: David Syphers on Unsplash

CommBank has replaced Awards with Yello points

CommBank has made an even larger change to its rewards system.

The CommBank Awards program closed on 29 September and eligible customers can now earn CommBank Yello points.

Existing Awards points are being converted to Yello points on a one-for-one basis for eligible customers, but the two programs are different points currencies with different earning and redemption arrangements.

From 1 October, Yello points can be transferred to several travel programs.

Current conversion rates include:

3 Yello points to 1 Qantas Point, with a $149 annual fee applying
2.5 Yello points to 1 Velocity Point, with a $99 annual fee applying
2.5 Yello points to 1 Qatar Airways Avios

That means simply looking at how many points appear in an account won't necessarily tell customers whether they're getting the same value as before.

The ATO will stop accepting credit cards from December

There's another major change coming for frequent flyer point collectors, particularly Australian business owners.

The Australian Taxation Office will stop accepting credit-card payments after 30 November 2026.

From 1 December, taxpayers will need to use alternative payment methods offered by the ATO.

The ATO says the decision follows the Reserve Bank's review of merchant card payment costs and surcharging.

As a government agency, it says it doesn't consider it appropriate for the cost of credit-card merchant fees to be transferred to the wider community.

The ATO acknowledges that some taxpayers currently rely on credit cards to manage their tax payments and says it will help taxpayers transition to alternative payment methods.

It is also contacting taxpayers who currently have a payment plan linked to a credit card.

For frequent flyer enthusiasts, however, there's another consequence.

Businesses and individuals who currently pay tax obligations directly to the ATO using a rewards credit card will no longer be able to generate credit card points from those direct ATO payments.

For a business owner regularly putting sizeable BAS, PAYG instalment, income tax or other tax liabilities through a rewards card, that could remove a significant source of points-earning spend.

Combined with lower earning rates on some cards, it represents another substantial change to the way Australians can accumulate frequent flyer points through everyday and business spending.

Business owner making a credit card payment

What does this mean for travellers?

The changes aren't universally bad news.

Australians will no longer have card surcharges added simply because they choose to pay using covered Visa, Mastercard, American Express or eftpos cards.

That's particularly welcome when paying for expensive purchases such as cruises, flights and accommodation, where even a relatively small percentage surcharge can quickly add up.

Some credit cards are also retaining strong travel benefits, while banks continue to compete for customers through sign-up bonuses, category bonuses and other rewards.

But the overall value proposition of individual cards is changing.

For travellers, that means comparing more than just the annual fee or headline number of frequent flyer points.

It may be worth checking:

whether complimentary international travel insurance is still included
how long that insurance covers you overseas
whether cancellation, baggage and delay cover has changed
whether insurance needs to be activated before travelling
how much eligible spending is required to activate insurance
whether rental vehicle excess insurance is included
whether frequent flyer earning rates have changed
whether monthly earning caps have been introduced or reduced
whether transferring rewards points to an airline now requires more points
whether new fees apply to frequent flyer transfers.

Check your travel insurance before your next trip

Of all the changes, travel insurance is potentially the most important for travellers.

Credit card travel insurance has long been an easy benefit to take for granted, particularly for people who have held the same card for years.

But having the same piece of plastic in your wallet doesn't necessarily mean you still have the same insurance.

This is particularly important for longer cruises.

A 30-day maximum insurance period may be perfectly adequate for a short holiday but unsuitable for a lengthy cruise combined with pre- and post-cruise travel.

Likewise, reduced cancellation limits could matter considerably when thousands of dollars have already been paid towards cruise fares, flights, hotels and shore arrangements.

Travellers should also be careful about assuming that booking their trip before a credit card's insurance changes automatically guarantees the old cover.

Transition arrangements differ between banks and policies, and eligibility may depend on when a claimable event occurs rather than simply when the holiday was booked.

Before relying on complimentary credit card travel insurance, check the current policy documentation for your exact card and your specific trip.

If the cover no longer meets your needs, you may need to consider separate travel insurance.

Traveller handing over documents at airport

No surcharge doesn't necessarily mean no fee

Finally, the disappearance of card surcharges doesn't mean every additional charge at the checkout disappears.

The new rules apply to fees charged specifically because a customer chooses to pay using a covered card.

They don't prevent legitimate booking fees, service fees, delivery charges or unrelated fees.

Weekend and public holiday surcharges are also unaffected.

Businesses still incur costs when accepting card payments, and those costs may ultimately be incorporated into their overall prices rather than appearing as a separate card surcharge.

For travellers, paying by card should now be simpler.

But with banks simultaneously rewriting insurance and rewards programs, frequent flyer earning rates changing and the ATO about to close one significant avenue for earning points, 1 October is also a very good time to check exactly what your credit card still gives you.