Points slashed

Credit card rewards cut

POINTS- HUNGRY credit card customers need to spend a whopping $52,000 on plastic just to get a $129 toaster under drastic new cuts made to rewards programs.

Financial institutions across the country have taken the razor blade to schemes and in some cases are halving customers’ maximum earn rates.

This includes some programs offered by big banks Westpac and National Australia Bank.

Both institutions have axed some of their Amex cards, limiting customers’ ability to earn rewards points with just Visa and Mastercard options.

Strict interchange fee regulations — the amount merchants pay for accepting plastic — changed from July 1 last year and were previously serious money spinners for lenders.

Analysis by financial comparison website RateCity found a customer previously had to spend at least $26,000 on Westpac’s Altitude Qantas Platinum card to get a $129 toaster from the Qantas store.

When the changes arrive next month, customers will have to spend double at more than $52,000.

This is based on the average monthly cardholder spend of $3387, based on more than 7.765 million cardholders.

RateCity spokeswoman Sally Tindall warned consumers “not to be complacent” about these changes.

“Find out what value you are getting out of your rewards minus the annual fee and then start weighing up if it’s worth it for you,’’ she said.

Under the new changes on the Westpac card, $1 will only earn 0.5 Qantas points — it was previously $1 for one Qantas point under the Amex partnership.

Other cards also changing their earn rates include the Woolworths Qantas platinum credit card and Macquarie platinum card with Qantas rewards points.