What do the new companion credit card rules mean?

Banks and American Express argue that new card rules planned by the Reserve Bank will reduce competition. American Express is facing caps on the fees it can pay banks who issue its so called "companion cards" alongside MasterCard and Visa cards linked to the same account.

Banks use these fees to cover interest free periods, fraud and to buy rewards points to give to customers.

Amex said consumers will get reduced benefits and more surcharges.

Source: The Age

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