Australians in 2017 will no longer enjoy some of the perks of loyalty cards and other reward-earning opportunities. Beginning in July, new rules on bank fees will reduce the amount of money banks will have to provide purchase incentives such as frequent flier miles. Consumers should consider maximizing their points earning potential between now and July 2017.
- If Australian business owners want to keep the loyalty points flowing, they will need to rethink their approach to credit card, loyalty card and purchasing activity.
- A loyalty points Armageddon is coming in July when new RBA rules cap the amount banks can charge merchants for transactions, dramatically reducing the amount banks can spend on points and miles.
- Award amounts will be cut and experts believe the high-earning bank-issued cards will simply disappear.
“A loyalty-points Armageddon, or “cardmageddon”, is coming to those who are addicted to airline and loyalty points earned from credit card purchases.”