Are banks getting tighter with frequent flyer bonus point offers?

Escape’s points expert, Sabine Leroy, answers your questions about frequent flyer programs.

I’ve been looking at getting a new credit card and it seems banks are offering less bonus points. What’s the best way to get the most points?

This is an interesting observation and my gut instinct tells me you may be correct. Ultimately the best way to check is to look at some historical data of what banks have offered. The team at finder.com.au compares many credit cards on the market and crunched the data on bonus points offers over the past six years.

Contrary to my initial thoughts, it wasn’t all doom and gloom. Looking at Qantas earning credit cards, the ANZ Frequent Flyer Black, lowest bonus points offered was 90,000. Today, it sits at 130,000 points which is actually its peak offer. 

For a Velocity card, it’s pretty much the same story. The American Express Velocity Platinum Card has fluctuated considerably over the six years however in 2019 it was offering 100,000 bonus points. In January of this year the same offer was available. It has since dropped back to 60,000. 

Bonus points may have passed their peak, but there are other benefits to being a card holder. Picture: American Express.

Taylor Blackburn, personal finance specialist at Finder, explained while it may seem bonus offers have passed their peak, it isn’t the case. 

“Many of the points offers are cyclical and vary from month to month and year to year, but we are actually on an upswing of sorts. Bonus points are key, but not the only selection criteria.”

Blackburn advises to consider the annual fee, earn rate and other features like lounge passes, insurance and purchase protection, not to mention that switching credit cards too often can impact your credit score.

Tough times could be ahead

The Reserve Bank of Australia (RBA) has proposed changes that will impact credit cards starting mid-2026.

The most relevant change is the RBA wanting to reduce the interchange fee. The interchange fee is what the merchant bank (the bank of the business where you are swiping your card) pays your credit card issuer every time you pay for something. Certain stores slap on a surcharge as a way to recoup some of the money lost when they pay the interchange fee. 

It may seem like a win, especially if surcharges disappear altogether, but it could become a problem for frequent flyer credit cards.  

We could see a shake up of frequent flyer programs in 2026.

That’s because banks typically points in bulk from airlines to then use as sign up bonuses and rewards. These points are partly funded by annual fees, however the real revenue comes from interest charges when you don’t pay your statement in full every month and also, interchange fees. 

Reducing interchange fees could lead to not only a drop in bonus offers and points earned through spending on your credit card. In other news, Westpac is changing the points-earning rates on its range of Platinum and Black credit cards from 1 August. It is introducing a cap on monthly card spend that will earn points at the full rate. After a cardholder spends $5,000 in a statement cycle, the earn rate drops.

See also: Why everyone's rushing to use their Qantas Frequent Flyer points by August 5

What’s the best way to get the biggest bonus points offer?

As Finder research shows, offers are cyclical and change month to month. If you’re not in a rush, I would hold out till you see a better offer. One thing is for sure, I would make one last switch before mid-2026 when the landscape could drastically change.

Have a question about points? Drop Sabine an email at [e-mail]. Personal replies are unfortunately not possible.

Originally published as Are banks getting tighter with frequent flyer bonus point offers?