NAB and Westpac the next big banks to give rewards credit cards a haircut

NAB and Westpac have announced shake-ups to their popular rewards credit cards to come into effect on 1 October as the RBA’s surcharge ban kicks in.

NAB will make sweeping changes to its rewards credit cards, including changes to fees and earn rates from 1 October.

These changes are being made as a result of the RBA’s surcharge ban and corresponding cut to the cap on interchange fees that help fund rewards programs.  

Westpac has announced the scaling back of its complimentary credit card insurance, along with some new card perks, also from 1 October, although the bank says these changes are not directly related to the RBA’s new interchange fee cap.

These announcements come a week after changes to ANZ’s sign-up bonus points and announced changes to NAB’s white-labelled credit cards – MyCard, BOQ and Virgin. 

As a result, a total of six credit card providers on the Canstar database have made or announced changes to their rewards card offerings ahead of the RBA ban.

Source: Canstar. Note not all changes listed above - see NAB website for further information. The cash advance rate on all cards will increase from 21.74% to 22.99%. Note: NAB Low Fee Platinum is no longer for sale. Card name changes from 1 Oct: Rewards Platinum will be renamed Rewards, Rewards Signature to be renamed Rewards Travel, Qantas Plus to revert to Qantas Rewards Premium.

Westpac key changes

Westpac will scale back its credit card insurance offering on 1 October, the key change being the scrapping of a range of cover, including trip cancellation, travel delay, vehicle excess, accidental death and luggage cover for international travel insurance. 

As a result, from 1 October Westpac’s credit card international travel insurance will only include limited medical cover.

The bank is also introducing new perks such as access to airport lounges when a flight is delayed by more than 2 hours, however, customers will have to activate this feature beforehand.

Source: Canstar. Changes effective 1 October. More details available on Westpac's website.

Nine weeks and counting: more credit card changes likely to come in lead up to RBA surcharge changes

The majority of the credit card changes have come as a direct result of the RBA’s ban on card surcharges, and corresponding drop in interchange fees. This is a fee charged at the backend to help facilitate card payments that also helps fund rewards programs.

With the ban now just nine weeks away, other lenders are expected to follow suit in the coming weeks, including potential changes to cards from Australia’s biggest bank, CBA, which back in March warned rewards offerings would be reviewed and that adjustments would likely be made.

What should credit card customers do? Watch your inbox for an email from your credit card provider, and look out for three key red flags:

• Fewer perks: For example, lower insurance cover, loss of airport lounge access.
• A points squeeze: Lower earning rates per dollar spent or higher redemption costs for rewards.
• Higher costs: Increases to annual fees, interest rates, or foreign transaction fees.

If your bank lets you know your credit card perks are changing, check you’re still getting good value out of your card.

These changes are unlikely to be the last

Canstar's Data Insights Director, Sally Tindall, says, “The rewards credit card gravy train is starting to slow, and these changes are unlikely to be the last.”

“With just nine weeks before the RBA’s surcharge ban kicks in, we expect further cuts to points, perks and insurances as banks prepare to see a drop in revenue from the interchange fees they collect.

“For years, rewards credit cards have tempted Australians with big sign-up bonuses, airport lounge passes and extensive travel insurance propositions. Now we’re seeing the trade-off. If the economics no longer stack up for banks, many of those bells and whistles are likely to be scaled back.

“NAB has taken a broad brush to its rewards cards, cutting earn rates on some cards while lifting interest rates and reshaping fees. 

“If you’ve got a NAB rewards credit card in your back pocket, take a good look at your new points structure, which in some cases might include new bonus points, but in a complex system that’s heavily focused on how much you spend and where.

“Westpac rewards card customers should also take a careful look at the bank’s changes to its credit card insurances. For many who rely on their card insurance when travelling overseas, the stripped-out insurance on offer from 1 October is likely to push more people into buying a standalone policy instead.

“If you receive a notice saying your card is changing, don’t just file it away. Read the fine print carefully because what looks like a small tweak to earn rates or insurance benefits can significantly reduce the value you get from your card over a year.”

Source: APRA Monthly Authorised Deposit-taking Institution Statistics, May 2026, released 30 June 2026, prepared by Canstar.