What the Australian credit card market looks like right now
The market splits into three broad camps. Bank-issued Visa and Mastercard products that earn airline or flexible bank points sit on one side. American Express proprietary cards typically earn faster and add premium travel perks, though they are not accepted everywhere. The third camp is the growing group of specialist no-foreign-transaction-fee cards designed for overseas and online spending.
Two recent shifts are worth knowing about. The Reserve Bank of Australia has moved to ban surcharging on eftpos, Mastercard and Visa from 1 October 2026, while lowering interchange caps to help businesses offset the lost surcharge revenue. That means the old habit of spotting a "3 percent surcharge" sign at the checkout will become less common, and the cost of accepting card payments is being reshuffled behind the scenes.
The other change is subtler. Average purchase interest on rewards cards still hovers around 20 to 21 percent per annum, so the card is only a good deal if you are not carrying a balance. For most Australians, the real game is earning points or cashback while paying the statement in full each month.
Matching the card to the way you actually spend
The frequent flyer
Sarah, a project manager in Brisbane who flies to Singapore twice a year, picked a Qantas Points card with a $349 first-year annual fee. She met the minimum spend within three months and banked a substantial bonus points balance, then used those points to cover a domestic return flight she would have otherwise paid cash for. For her, the fee made sense because the points replaced a real cash cost.
Frequent flyer cards from ANZ, Qantas and others currently offer sign-up bonuses that typically range from 40,000 to 90,000 points, often tied to a spending threshold in the first three to four months. The catch is that bonus eligibility usually requires that you have not held the same rewards or frequent flyer card in the previous two years.
The low-cost everyday user
Not everyone wants points. Marcus, a teacher in Adelaide, just wanted a card that did not punish him for carrying a small balance occasionally. He moved to a low-interest card with a purchase rate around 9.9 to 13.7 percent and no annual fee, and set up automatic repayment for the full amount. His old rewards card charged 20.99 percent, so the switch quietly saved him several hundred dollars a year in interest.
Low-rate options such as the ANZ Low Rate card carry modest annual fees around the $58 mark, while several no-fee cards from banks like Bankwest offer a 0 percent purchase rate for the first six months before stepping up to a standard variable rate.
The overseas spender
The third scenario is the traveller. Australian cards that charge no foreign transaction fees are the most reliable way to avoid losing 2 to 3 percent on every overseas purchase. A card with zero international transaction fees saved one family about AUD40 on a USD200 purchase compared with the more expensive big-four alternatives, according to consumer protection research. If you travel regularly, this single feature can outweigh any points program.
A quick comparison of card types
| Card type | Example | Annual fee range | Best suited for | Strengths | Watch out for |
|---|
| Rewards points | ANZ Rewards Black | $320-$375 | Frequent high spenders | Fast points, travel perks, up to 9 additional cardholders | High fee, interest around 20.99% |
| Frequent flyer | Qantas Premier Platinum | $349-$399 | Regular flyers | Large bonus points, 1 point per dollar | Must meet minimum spend |
| Low interest | ANZ Low Rate | Around $58 | Balance carriers | Low purchase rate, up to 55 interest-free days | Minimal rewards |
| No annual fee | Kogan Money, Bankwest Zero | $0 | Budget-conscious users | No fee, intro 0% purchase offers | Standard rate after intro period |
| No FX fee | Specialist travel cards | Varies | Frequent travellers | Saves 2-3% on overseas spend | Fewer rewards programs |
Practical steps before you apply
Start by pulling your own credit score. Australian credit reporting means applications show up as enquiries, and too many in a short window can look risky to lenders. Check your score first, then apply only for cards you are genuinely likely to be approved for.
Work out the real cost of the fee. If a card charges $349 a year, ask whether the points, cashback and insurance add up to more than that for your specific spending. Sarah's calculation worked because her spend was high enough. For most people spending under about $1,500 a month, a no-fee card often makes more sense.
Read the bonus points conditions carefully. Many offers require a minimum spend within the first three months, and most exclude applicants who held the same card type in the previous 24 months. Miss the spend threshold and you lose the bonus entirely.
Set up automatic repayments. The most expensive credit card mistake is carrying a balance at 20 percent interest. A scheduled full payment each month removes that risk and keeps rewards worthwhile.
Resources available to you
Use comparison services such as Canstar, Finder and Money.com.au to filter cards by fee, rate and rewards across more than 200 products. The Reserve Bank of Australia publishes the surcharging changes if you want the regulatory detail. If you bank with ANZ, NAB or another major institution, their own comparison tools let you check eligibility before you apply.
Regional community banks and mutuals often offer low-fee cards with no annual fee at all, which can be a smarter fit for people who rarely fly and simply want a reliable everyday card.
A final thought
The best credit card in Australia is not the one with the biggest bonus points offer. It is the one that matches your spending pattern, your travel habits and your ability to pay on time. Work out whether you are a points hunter, a low-cost user or a frequent traveller, then choose accordingly. If you clear the balance every month, a fee can be worth paying for the perks. If you do not, a low-rate card with automatic repayment will serve you better than any loyalty program ever will.
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