Credit Cards, Rewards and BNPL Rules — 2026-10-11

Top developments

Australia’s Surcharge Ban Reshapes Loyalty Economics

The Reserve Bank of Australia’s ban on credit and debit card surcharges officially commenced on October 1, 2026. This regulatory shift has forced banks and retailers to recalibrate loyalty programs, as the removal of merchant surcharges reduces the effective cost of acceptance for low-margin transactions, prompting issuers to tighten rewards and increase fees to maintain margins. The RBA has published FAQs to clarify that while surcharges are banned, other fees may still apply, and businesses are exploring alternative cost-recovery methods.

Chase and IHG Refresh Co-Branded Cards with Higher Fees

Chase and IHG have announced a comprehensive refresh of their credit card portfolio, effective recently. The changes include the introduction of a new "Premier Select" card and significant updates to existing products, characterized by higher annual fees but enhanced elite perks and updated earning rates. This move aligns with a broader trend of premiumization in travel credit cards, where issuers are increasing costs to fund more exclusive lounge access and travel credits, directly impacting the value proposition for frequent travelers.

Indian Banks Implement Widespread Reward Devaluations

Major Indian banks, including SBI, HDFC, Axis, and ICICI, have implemented substantial devaluations across cashback, lounge access, and travel benefits in 2026. These changes, tracked by SaveSage, indicate a systemic reduction in reward points per dollar spent and stricter conditions for lounge access, reflecting global pressures on card profitability. For consumers, this means points earned today are worth significantly less than they were a year ago, forcing a reevaluation of card strategies in the Indian market.

Japan’s dCard Faces Major Devaluation Starting 2027

Japanese media reported that NTT Docomo’s dCard will undergo significant changes starting in 2027, with the base point return rate dropping to 0.5% from previous levels. Additionally, an annual fee will be introduced for certain card tiers unless specific spending conditions are met, marking a notable shift from the previously fee-free model. This devaluation highlights the ongoing trend in Asia where issuers are moving away from high-yield, no-fee cards toward tiered models with conditional rewards.

Marriott Bonvoy Amex Devaluation Sparks Alternative Card Searches

Following the recent devaluation of the Marriott Bonvoy American Express card, Japanese financial blogs are actively guiding users toward alternative cards. The changes have reduced the value of points and increased the burden of annual fees for some holders, leading to a surge in searches for substitute cards that offer better point return rates or lower fees. This reflects a broader consumer sentiment that premium travel cards are becoming less accessible without careful management of spend thresholds.

Local view

South Korea: Local Korean media reports that major card companies are launching interest-free installment campaigns for October shopping and travel payments to stimulate consumption amid economic uncertainty. However, these promotions are often paired with "benefit diets," where issuers reduce point accumulation rates or restrict lounge access to offset the costs of free installments. The focus is shifting from broad perks to targeted, time-limited promotions.

Japan: Japanese stakeholders are heavily focused on the "kaaku" (deterioration) of card benefits. Blogs like "American Express ni Yoroshiku" are providing detailed breakdowns of the new Chase IHG terms for Japanese users, emphasizing the need to understand new earning rates before applying. Meanwhile, "Smakko Cashless" is warning users about the upcoming dCard changes, advising them to lock in current benefits or switch providers before 2027.

Australia: The Wise Marketer notes that the post-surcharge ban environment is "resizing" the Australian loyalty market. Retailers and banks are experimenting with new models, such as higher base fees for premium cards to subsidize the loss of surcharge revenue, which previously helped fund reward programs.

Context & numbers

• Australia Surcharge Ban: Effective October 1, 2026, businesses can no longer add surcharges to Visa, Mastercard, and Eftpos payments, affecting nearly three-quarters of consumer payments in the country.
• Interchange Updates: Visa, Mastercard, Discover, and American Express have implemented specific interchange-level and network changes effective October 2026, altering processing costs for merchants.
• US Transfer Bonuses: Key transfer bonuses from Amex, Chase, and Capital One expired by September 30, 2026, ending a period of elevated value for transferring points to partners like Hyatt and United.
• BNPL Regulation: The CFPB continues its inquiry into major BNPL lenders (Affirm, Afterpay, Klarna, PayPal, Zip) under Section 1022(c)(4), seeking data on risks and benefits, though specific new rules are pending finalization.

On the radar

• Q4 2026 Offer Deadlines: Monitor the expiration dates of remaining welcome bonuses, as many limited-time offers are winding down ahead of the holiday season.
• Lounge Access Restrictions: Watch for further tightening of guest policies and authorized user fees on premium cards like Capital One Venture X and Amex Platinum, as issuers seek to control costs.
• BNPL Rule Finalization: Keep an eye on any final rulemaking announcements from the CFPB regarding BNPL disclosures and late fee caps, following the recent market monitoring orders.