Credit card types compared: cashback, points, frequent flyer and low-rate
Card types and payment options used in Australia side by side, by how they work, who they suit and what to watch for.
This table compares types of cards and payment options, not individual issuers or products. Australian card terms differ a lot within each type, so use it to decide which type to shortlist and then compare the Key Facts Sheets of real cards. Fees, rates and earn rates are not quoted here because they change often. Read alongside the comparison overview and test any rewards card in the rewards value vs annual fee calculator.
Select a column header to sort.
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| No annual fee card | No yearly fee; usually few or no rewards; interest-free days on purchases if paid in full | Occasional use, emergency backup, people who rarely spend on credit | Purchase rate can still be high; check other fees |
| Low-rate card | Lower purchase rate than most rewards cards, modest or no annual fee, usually no points | Anyone who sometimes carries a balance | Still far more expensive than paying in full; cash advance rate is usually higher |
| Cashback card | A percentage of eligible spending or a fixed amount credited back, often capped or limited to a promotion | People who want a simple, known value without redemptions | Caps, time limits and exclusions; ongoing cashback can be small after an intro offer |
| Bank rewards points card | Points per dollar in the bank's own program; redeem for gift cards, goods, cashback or transfer to airline partners | High spenders who pay in full and redeem thoughtfully | Earn caps, lower earn on some spending, separate rewards fee, devaluation and expiry |
| Frequent flyer linked card | Points earned on card spending go directly or via conversion into an airline program | Travellers who redeem points for flights or upgrades they would buy anyway | Higher annual fees; seat availability and taxes or carrier charges on reward flights |
| Premium or platinum rewards card | Higher earn rates and perks such as lounge passes, travel insurance or credits, with a high annual fee | Frequent travellers who use most perks every year | Perks carry conditions; included travel insurance has eligibility rules and exclusions |
| Balance transfer card | Low or 0% promotional rate on transferred debt for a set period, often with a transfer fee | Paying down existing card debt on a strict plan | Revert rate on what is left; new purchases may lose interest-free days; no new spending |
| Charge card | Balance must normally be paid in full each statement; no ongoing revolving balance | Disciplined spenders wanting rewards without a revolving limit | Late payment fees; not accepted everywhere; charge cards not on eftpos, Mastercard or Visa are outside the RBA's designated-network rules, but the RBA's FAQs say American Express and UnionPay have also removed surcharging from 1 October 2026 |
| Debit card | Spends your own money; no interest or credit check | Everyday spending without debt | Usually no rewards; fraud protections differ from credit card chargebacks in practice |
| Buy now pay later | Purchase split into instalments; regulated credit since 10 June 2025 | Small purchases you can repay on schedule | Late fees, many accounts at once, repayments on credit reports |
This table describes how product types generally work in Australia as at October 2026; individual cards differ. The RBA's removal of card surcharges from 1 October 2026 applies to debit, prepaid and credit cards on the eftpos, Mastercard and Visa networks; check the Reserve Bank of Australia for details on other networks. Credit card rules are in the National Consumer Credit Protection Act 2009 and the National Credit Code on the Federal Register of Legislation. Compare real products using each issuer's Key Facts Sheet and ASIC's Moneysmart. General information, not financial advice.