Frequent flyer members may soon find it more difficult to rack up points through credit card spending following new rules from the Reserve Bank that will reduce how much banks earn from transactions.

The regulator has confirmed a sharp cut to interchange fees, lowering the rate from 0.8 per cent to 0.3 per cent. These fees are a key source of funding for the rewards programs attached to credit cards, meaning banks will have less revenue to support points, perks and sign-up bonuses.

Industry analysts say the shift is likely to lead to changes in how reward cards operate. Banks could reduce the number of points offered for everyday spending or scale back promotional bonuses used to attract new customers. Other options include increasing annual fees or adjusting interest rates to offset the loss.

Experts suggest the impact may not be evenly distributed between Australia’s two major airline loyalty schemes. Virgin Australia’s Velocity program is seen as more exposed because of its stronger reliance on credit card partnerships to drive points accumulation. By comparison, Qantas Frequent Flyer has a broader network of partners, giving members more ways to earn points beyond banking products.

That wider ecosystem includes partnerships across retail, travel and lifestyle categories, allowing members to accumulate points through activities such as shopping, fuel purchases and even health-related programs. Qantas also offers status credits through non-flight activities, which could become a more prominent feature if points earning slows.

There is also speculation that banks may increasingly offer alternative rewards, such as status credits, which are generally cheaper to provide than points tied to flights. At the same time, airlines could look to sell points directly to consumers more aggressively as a way to replace lost revenue from financial institutions.

With the changes expected to take effect in about six months, experts are advising consumers to maximise their current earning opportunities while existing credit card benefits remain in place. Banks are likely to begin reviewing their rewards products soon, potentially leading to adjustments in earn rates and bonus offers.

Despite the expected changes, industry observers believe credit card rewards will not disappear altogether. Airline points remain a major draw for customers, and banks will need to balance cost reductions with maintaining competitive offerings.

Qantas, for its part, has pointed to the resilience of its loyalty program, noting its large membership base and extensive partner network. The airline says its points ecosystem has continued to grow over time, even as regulatory changes have reshaped the payments landscape.