Changes to credit cards in Australia

Are Credit Card Rewards Still Worth It? What Australia's Payment Changes Mean for Renters

For many Australians, credit cards offer more than a convenient way to pay. From frequent flyer points to cashback and other perks, rewards programs can make everyday spending feel more worthwhile.

For renters, the opportunity to earn rewards on one of their largest recurring expenses - rent - can be particularly appealing.

However, changes to Australia's credit card industry are raising questions about the value of these benefits. As banks revise their rewards programs, payment rules change and rental payment platforms adjust their services, renters may need to rethink how they pay their rent and whether earning rewards is still worth the cost.

Credit Card Rewards Are Changing

When evaluating a credit card, consider the following:

• Reward points: How many points do you earn for every dollar spent, and have the earn rates changed?
• Annual fees: Does the value of the rewards justify the yearly cost of keeping the card?
• Interest charges: Will interest on an outstanding balance outweigh the benefits of earning points?
• Additional benefits: Are complimentary travel insurance, cashback and other perks still available?
• Payment fees: Does your chosen payment service charge a separate fee for using the card?

These factors are especially important for people who use their credit cards for large recurring expenses, such as rent.

In an October 2026 report, ABC News explained how Australian banks have been changing credit card benefits, including frequent flyer points, annual fees, interest rates and complimentary travel insurance. These changes have prompted consumers to reconsider whether their existing credit cards still offer good value.

The developments coincide with Australia's new card surcharge rules, which took effect on 1 October 2026.

Under the reforms, surcharges on covered credit, debit and prepaid card payments were removed across designated card networks, including Visa, Mastercard and eftpos. American Express, UnionPay and PayPal have also announced changes to their surcharge rules.

The Reserve Bank of Australia introduced a broader package of payment reforms alongside the surcharge changes. These include lower interchange fee caps for domestic card transactions and greater transparency around payment-processing costs.

The reforms aim to make card payments more transparent and reduce payment costs for businesses. However, the benefits and consequences may vary depending on the business, payment provider and financial product involved.

How Do These Changes Affect Rental Reward Schemes?

Rent is one of the largest regular expenses for many Australian households. As a result, some renters look for ways to earn credit card rewards on their rental payments rather than miss out on points for such a substantial expense.

Rental reward schemes and third-party payment services may allow eligible renters to earn points on rent, depending on the provider, payment method and credit card used.

However, these arrangements are not always free. Transaction fees, service charges or membership costs can reduce - and sometimes outweigh - the value of the rewards earned.

Are Rental Rewards Worth It?

Considering a renter paying $2,000 monthly in rent. If their payment service charges a 1.5% fee, the additional cost would be $30 per month, or $360 over a year.

Illustrative example only. The fee is hypothetical and does not represent the charges of a specific payment provider.

To determine whether this arrangement is worthwhile, the renter needs to compare the value of the rewards earned with the additional $360 annual cost, as well as any other applicable fees. If the rewards are worth less than the fees, the renter would be better off considering another payment method, assuming it meets their needs.

How Could Changing Credit Card Rewards Affect Renters?

Changes to credit card rewards can affect rental payment schemes in several ways:

• Lower rewards: Reduced points-earning rates may make it harder to justify paying a fee to earn points on rent.
• Higher card costs: Increased annual fees can reduce the overall value of a credit card.
• Changing payment options: Providers may alter the payment methods they accept, limiting how renters can earn rewards.
• Different fee structures: Some services may introduce membership fees or other charges that affect the total cost of earning rewards.

The result is that renters need to look beyond the number of points they could earn. What matters is the actual value of those rewards after accounting for the costs involved.

DEFT's Payment Changes: What Renters Need to Know

From 1 October 2026, DEFT stopped accepting credit and debit card payments through its website. According to DEFT's official announcement, the decision followed changes to Australia's card surcharge rules. The company said it was shifting towards payment methods it describes as fast and fee-free.

Importantly, the surcharge reforms did not require DEFT to stop accepting cards. Rather, DEFT chose to change its available payment options in response to the changing payment environment.

For renters who previously used DEFT to pay by card, the change means they need to consider alternative ways to make their payments.

The change may affect renters in several ways:

• Fewer payment options through DEFT: Customers can no longer pay through DEFT's website using a credit or debit card.
• Changes to rewards strategies: Renters who used an eligible card payment arrangement to accumulate points may need to explore other options.
• Budgeting adjustments: Those who relied on credit cards to manage the timing of their payments may need to adjust their financial routines.
• Alternative payment methods: PayID, BPAY and direct debit may be available, depending on the biller and payment arrangement.

DEFT also states that some customers may be able to pay through BPAY using a credit card, depending on their bank. Other payment apps and websites may offer card payments as well, although their availability and fees can change.

This distinction matters because DEFT's decision does not mean that all rent payments must be made without a credit card. Renters should check which methods their property manager accepts and whether an alternative offers the same convenience and financial benefits as their previous arrangement.

How Can Renters Decide Which Payment Method Is Best?

With credit card rewards changing and payment providers adjusting their services, renters may benefit from reviewing their existing arrangements. Before choosing a payment method, consider these five steps:

1 Calculate the total cost. Add up any transaction fees, membership charges and relevant annual card fees.

2 Estimate the value of rewards. Check what your points are actually worth when redeemed, rather than relying on the advertised earn rate.

3 Review your credit card's conditions. Look for changes to rewards, spending limits, interest rates and other benefits.

4 Compare available payment methods. Ask your property manager which options are accepted and whether any fees apply.

5 Prioritise your budget. Make sure your chosen payment method allows you to pay rent on time without accumulating expensive credit card debt.

The Bottom Line: Look Beyond the Points

Credit card rewards can still offer value, but their usefulness depends on the overall financial arrangement, not simply the number of points accumulated.

Changes to bank rewards programs, Australia's surcharge reforms and DEFT's decision to discontinue online card payments demonstrate how the options available to consumers can evolve.

For renters, the key considerations are straightforward:

• Compare the value of rewards with the cost of earning them.
• Check whether payment fees or reward conditions have changed.
• Confirm which payment methods your property manager accepts.
• Consider convenience and budgeting alongside potential rewards.
• Avoid accumulating interest-bearing credit card debt just to earn points.

Ultimately, the best payment option is not necessarily the one that earns the most points. It is the one that balances cost, convenience and financial flexibility while ensuring rent is paid reliably and on time.

References

1. ABC News. Banks are slashing credit card perks. Here's what you stand to lose. 1 October 2026.
2. Australian Real Estate. Tenants Beware of Rental Rewards Schemes. Originally published 29 July 2021; updated December 2024.
3. Reserve Bank of Australia. Review of Merchant Card Payment Costs and Surcharging: Conclusions Paper. 31 March 2026.
4. Reserve Bank of Australia. Frequently Asked Questions: Removal of Card Payment Surcharges From 1 October 2026.
5. DEFT. Important Changes to DEFT Payment Options.
6. Australian Government, Treasury. Credit and Debit Card Surcharges End Today. 1 October 2026.