Commonwealth Bank of Australia Flags Card Rewards Changes After Australia’s Surcharge Ban
Late Tuesday, Commonwealth Bank of Australia flagged potential changes to its card lineup, rewards, and perks after the Reserve Bank of Australia moved to ban most card surcharges—those familiar checkout fees—and slashed interchange fees, upending the business model for consumer cards starting Oct. 1. Though the bank supported the surcharging ban, it cautioned that broader fee cuts could pressure a vital funding source for both cards and payments systems. The warning is notable: CBA, Australia’s biggest lender, tends to lead the pack in retail banking. According to the RBA, the changes could save consumers A$1.6 billion annually and reduce business payment costs by roughly A$900 million. Banks, though, push back, saying the interchange fee — embedded in card transactions and