Credit card annual fees for points collectors are a fact of life. If you want a card that will earn you the most points, you’re almost certain to have to pay a fee with the card. But are there any ways to waive the annual fee?
The answer is ‘yes’, but more often than not, you’ll be left to pay the fee once your first year is up. There’s no harm in asking your bank if there are any account retention offers available to you before the fee is charged.
This guide helps build a crowd-sourced list of banks, credit cards and tactics you can employ to help get your annual fees reduced or waived entirely. It’ll help you to understand and take advantage of if you decide to do the same.
What are my chances of getting my annual fee waived or reduced?
A key factor in your value to a bank is how much you use a card. Logic would dictate that the more you use a credit card, the more you are worth to a bank in merchant fees paid by the retailers you shop at. Although there’s no evidence of specific retention offers to back this up, that has to be a factor in how much a bank would want to keep your custom.
So if you have a card that you want to keep for the benefits or points earn into subsequent years after you’ve first signed up, you’ll probably have more chance of the bank wanting to keep you if you’ve actually used the card.
What should I consider before I call?
When it comes to actually requesting a fee waiver, this would normally be done at the point of requesting a cancellation on the card, which is almost always over the phone.
(Instead of over the phone, you could also try using secure messaging in your bank’s message area to ensure the communication between you and your bank is clear. However, more often than not, I’ve found that the bank will just ask you to call them anyway.)
You’ll need to decide before you get on the phone whether you are willing to go through with a card cancellation there and then, or whether you are just testing the waters.
Some of the main factors that would determine if you’re willing to go through with the cancellation are:
- How tied to the bank you are: do you have multiple products or a mortgage package which can’t be unbundled, for example (in which case, the rest of this guide is probably not so relevant)
- How close to the annual fee you are: the closer you are, the less time you have to make a decision
- How many points you are owed: if using a bank rewards program you will lose the points if you cancel your account, so transfer them out. If you are on a monthly direct-sweep card, you should wait until as soon after the account has swept the points over — or ask the phone agent if they can tell you whether cancelling your account will stop the next points sweep
- Whether you’ve used all your benefits: free flights, extra hotel nights and other travel benefits should be used before you cancel, if you can
- Are you relying on insurance included with the card: if so, consider the cost and act of taking out your own policy if you decide to cancel the card
- The inconvenience of cancelling: how many direct debits you have with the card that will need changing, and how much time you have to administer the changes
What do I ask the bank?
I’ve heard from many people about how they have dealt with their bank, and invariably being polite, clear and concise is the way to go. I’d suggest something like this gets the conversation off on the right foot:
My annual fee is due soon and I’m considering the various credit cards I currently hold. Before I make a decision to cancel this card, could you let me know if you can offer any incentives to keep it?
Express clearly that you are considering cancellation, and could be willing to go through with it. Be clear about the reason why you are considering cancelling, if asked.
Have the card’s features changed since you originally applied for it, or the rewards program no longer preferred? If the bank doesn’t get good feedback, they don’t know why they are losing a customer.
You should also consider clearing the balance on your card before you call. This means you should be ready to go through with cancelling your account if you decide to do so.
The new rules that came into effect in 2019
Note that since 1 January 2019, credit card rules have become stricter for lenders. They must provide an ability for credit cards to be cancelled online. In addition, the credit card provider is obliged to assist the cardholder in any of their requests. However, requests for fee waivers can still be made.
So, for example, if the cardholder says, ‘I wish to close my card,’ then the provider must reasonably assist in doing this, meaning that they cannot proactively offer bonus points to retain the cardholder’s business.
However, if you say, ‘I’m thinking about closing my card, but would like to explore if you have any offers available to me before I decide to close,’ then a bonus retention offer is still okay.
What should I expect from the bank?
Your bank will usually be able to tell you immediately over the phone if they have an offer available to you. However, you may be transferred to someone whose job it is to handle cancellations specifically. An offer might include:
- A retention bonus, instead of a fee waiver (for example, bonus points or a balance transfer offer)
- Discounted annual fee or fully-waived annual fee
- A combination of the above
- No offer at all*
*No retention offer at all is quite common, so don’t get too disappointed if your bank doesn’t want to help you out and keep you as a customer.
Summing up
The most important thing when approaching a conversation with your bank about your annual fee is to be prepared.
Firstly, you’ll need to do the maths so that you can determine whether or not it’s worth keeping the card at the full annual fee, a reduced one or only if it is completely waived.
Next, you’ll want to make sure you have used all of the available benefits attached to the card, such as free flight benefits or lounge passes. You’ll also want to consider transferring all of the points out of your account and paying off your balance.
Finally, when you do come to call the bank, be clear in your request. Make sure it invites the bank to offer you something, using language like, ‘I’d like to explore if you have any offers available to me before I decide to close this card’.
Are you in the market for a new card? Check out our current rewards card offers, or our table of all the current points earn rates on every rewards card.
In the comments below, many have shared their experiences to help others know what their chances are in getting a fee waived or reduced for a specific card.
Everyone’s circumstances with their bank differ, but it should give some idea on the various policies and offers that are out there. Feel free to share your experiences too!
It didn’t take much. I just said I was looking at changing cards to one with a lower fee and if they could waive or lower the annual fee and they sympathised with me, saying they know it’s been financially difficult for many people this year and how about they offer 1/2 annual fee?
If your annual fee has already been charged, they can also offer to refund half of it back.
Have the NAB Qantas Rewards Signature card. 100k QFpoints on sign-up and reduced annual fee of $295 for the first year. Further 30k QFpoints after 12-months but increasing to the standard $395 annual fee. Rang NAB and said I was considering cancelling as I was no longer able to justify the high annual fee. Without any hesitation they offered up $100-off (by way of refund after I’ve paid the $395) and confirmed that it will have no impact on the ‘2nd year’ 30k QFpoints offer. Not a complete waiver but I’m still pretty happy with that for my first time.
Over the past few years we’ve seen decent no annual fee card offers evaporate – and with the current situation I’ve decided not to pay an annual fee for products with ‘potential future rewards’. Hopefully this will all swing back in consumers favour as everyone tightens their belts.
I have home loans with ANZ and hold a few shares. As such I am entitled to the breakfree package for which I pay about $390 annually. Within that, I get a discount on interest for all loans (benefit depends on loan size) generally .25-.5%, no bank fees on one account ($120) and no annual fee on one credit card. Consequently, I have a black FF card. Yes, I have to pay the $390 but it works out well for me.
Credit card with a high sign up bonus?
Unfortunately, by law, I am not able to provide you with any specific answer here, as I don’t know your personal financial situation and whether the Qantas Platinum Premier card is still the most suitable card for you in the future.
Please refer to our credit card guides, which include all current offers, and you may wish to speak with your accountant or a finance professional to help you with this decision.
On the first year annual fee anniversary date (10/18), I called Qantas Money and asked them to waive the annual fee which they offered me 2k QFF points OR a full waiver of the $299 fee. I jumped on the waiver.
The second year not so good! I deliberately had my account in $5 credit so called and the call center offered me half price annual fee. I played hard ball, knowing I’ve had it waived before with this provider and numerous others and went right to the brink of cancellation, asked again… no dice. Duly closed on the spot. The feedback I got from the representative was that he “could see I was a “loyal and profitable customer but can’t offer anything more with the current campaign”
I opened an HSBC Platinum Qantas Visa a couple of days later and am still on the 1 point earn rate, albeit now capped at $2.5k earn.
So I cancelled the card.
Once I had gone through the process of agreeing to cancel the card, I was offered 30,000 Membership Rewards points as a “Loyalty Bonus”, at which point the card cancellation was stopped.
30,000 Membership Rewards = 15,000 Velocity or 15,000 Krisflyer points, for a $99 annual fee. It’s a pretty good card and worth keeping at that price. I’ve switched to collecting Membership Reward points now that Qantas points are twice the price.
This approach does not always work, but you have proven that it definitely does sometimes!
This year, no way Jose. I rang to discuss and they said that as a result of changes in banking regulations they can not offer me an inducement to remain with them. ( I think that’s incorrect, but that’s another story ).
End result, I cxled the westpac card and took a supplementary card on my wife’s Commonwealth diamond card for the grand sum of $20..
The stupidity of the westpac decision is stunning. I was spending around $50-80K per year on the card any they let me walk for the annual fee of $250. I’ve no doubt their cost of customer acquisition is way higher than that per customer, not to mention the say 1% commission they miss out on with the merchant.
And I cleaned out every altitude point I had by transferring over to SQ 🙂
I highlighted to the “customer relationship manager” that my $spend is trending significantly upwards after ditching an AMEX Platinum Edge card (formerly used for groceries/fuel -> R-I-P a former bargain card!).
Unhappy ending: I was offered a “credit of 3000 Macquarie Rewards Points” (i.e. having a gift-card value of $15.59).
Bye-bye Macquarie Bank.
I’m new but reading the above comments
Is it normal for the annual fee to be waived on sign up if you push or when it’s your anniversary date?
If you do decide to cancel the card before the anniversary date, are you normally charged a fee?
Once you’ve claimed the bonus points, do you have to use them before the anniversary date?
I know each provider is different but just looking for general answers
Cheers
Annual fee waivers are not generally given when signing up to a card. Previously, the bank had discretion to waive an annual fee on renewal if you had indicated that you might wish to cancel the card, however with the regulatory changes that took effect on 1 January 2019, banks must immediately process any request for to cancel a credit card, so that option has in effect been removed.
No fees are charged for cancelling a card. In some cases, annual fees may be pro-rata refunded, however policies differ among providers.
If bonus points are transferred to a frequent flyer account, then they will be subject to the terms and condition of the frequent flyer program. If they are credited to a bank’s reward program, then they are subject to the bank’s terms and conditions, including any applicable expiration dates. Make note though that if the points sit in a bank reward program, then make sure to use them before you cancel your card, or you will forfeit the points.
If anyone can answer me
I have westpac black altitude and the offer is waived 1st year and 250 after
So I am currently in my first year and used it so frequently
Can I asked them to waived 250 before my year finished!
If I canceled before 1st year finished do they have the rights to take 250 or not!?
Supposed no point there and no any debits
I wanted to cancel so i didnt get the fee but it might be too late 🙁 did they help you out???
Tara
However, last year Commbank was a different story. I accidentally let annual fee roll over. Rang to ask for fee waiver or retention offer, as was a good client with multiple accounts and had been there for 2 years. They only waived the fee subject to me cancelling the card entirely. Very surprised at this!?
They offered to waive the entire annual fee saving me $395 dollars. I had used the card pretty extensively last year so that might have turned things my way. Who knows?
Decided to keep the card as a backup and will probably cancel later in the year.
I’m in the same boat with exactly this same card. Just wondering whether they offered to waive the annual fees for the life of the card or just for one year. When I asked Westpac they said the new Amex card is processed by Amex so they have no way to waive the annual fee. Is this consistent with your experience?
So just the 1 year waived but still a significant saving and I’ll keep the card for a bit.
Do you know if bonus rewards points are cancelled if you cancel your credit card before the first year? E.g. some credit cards are giving 80,000 bonus points on new sign ups if you spend a certain amount within the first few months.
So, if I sign up spend the required amount within the time frame and cancel my card within the first year will they cancel the bonus points?
Thanks heaps 🙂
I’m sure I will bump into it soon, but I haven’t yet hit the burn / churn denial bin and I’ve been cycling 2-6 cards per year since the days of interest rate stoozing. FF points are better deal for me now.
Most cards have a grace period of weeks to months (varies per bank & card) on redeeming or sweeping your reward points after closing the associated credit card. If you’re concerned about it, just make sure you redeem / transfer your reward points prior to closing and ensure there are no nasty claw-back conditions in the T&Cs (very unusual to see them).
Called up the cancellations team with the intention of cancelling the card, was asked why, to which I explained that the fees vs the rewards on the card (after the withdrawal of the AMEX points) were too high. The guy on the end of the phone asked to hold the line for a couple of minutes and came back with an offer to credit all fees back to my account. No loss to see me so I accepted and I’m now $295 better off…phew.
I thought because I had been charged I was screwed but if anyone is in the same position, just give them a call and see what they can do.
Migrated from Platinum so Annual Fee is usually $249/yr. AF retrospectively waived last 3 or 4 years when calling to cancel but not too much travel those years. A lot more travel this year.
Called a few months early, usual routine of comparing other cards at Black level from Westpac, AMEX etc. Advised couldn’t waive AF in advance try again after posted to acct, got 10K bonus points offer, took that.
Called them again after AF posted, not prepared to waive, only $50 refund, accepted that.
Have current travel insurances, very large balance to migrate via SPG > Marriott (or best value transfer / redeem if that’s not possible), and product insurances so will swallow it for this year. AF can be refunded if cancel within first 3months of the cycle, but after that it will be hit and miss.
I rejected the offer on the basis that there are still a heap of better offers and issuers out there, and I kind of just wanted my relationship with ANZ to come to an end (they haven’t made me too happy recently).
Anyone else had instances of being offered cash/credit to their account?
I should also mention that I signed up for the card with no fee for the first year, so 50% is still pretty good. From what I’ve read, ANZ would outright reject those waiver requests.
Bankwest Qantas World MasterCard was a different story. Called to cancel, initially they said no waiver, but I was busy at work so I said I’d call back to cancel. The following day I called back, got transferred to another person who happily waived the annual fee. I guess you have to really threaten to go through with it before they escalate.
Anyone have any information on AMEX Charge card?
I called back to cancel and said I’d take my spend to Citi Prestige where my annual fee has been waived already and they eventually gave me a $600 discount. I must say though I’ve had my fair share of insurance claims, hotel / airline complaints etc over the years and they have always come through with full refunds and even stumped up for things which weren’t their fault in order to keep my custom. Customer service is brilliant once you escalate an issue above call centre staff.
Does anyone know if there is any getting around the terms that you can’t get the bonus points on new cards if you have been a customer of the bank in the last 12 months?
Current spend $5k/month.
I have had mine for about 18 months or so and loved it, but am looking to cancel within the next 5 months….
Annual fee going up to $249 (was $189), and capped/tierd 1:$1 at 2500 per month (1:$2 after that).
Have put about $70K on the card in the last 12 months. But as James said that doesn’t necessarily mean much, as I’ve always paid closing balance in full.
Will ring and threaten to cancel before annual fee is due, but doubt I’ll get offered anything as it’s still pretty much a credit union.
Anyone with info on their experience with Qudos??
Convinced her to cancel the card so she can begin the 18month waiting period of no amex issued cards – to get a sign up bonus in the future. She rang up and requested to cancel the card, they offered her 8000 QFF points… she took the points. They got credited to her yesterday. What would be an acceptable wait time before she actually cancels it?
First of all, just because you make a lot of transactions using your card doesn’t automatically make you a profitable customer. Yes, issuers will earn interchange on your transactions, but this is commonly used to offset (or more realistically, partially offset) the cost of the rewards points that you’re earning on those transactions. So just because you’re spending a lot on your card, doesn’t mean your issuer is making much money out of you.
Interest income is a much greater driver of credit card profitability, but Rewards customers have a much lower propensity to revolve a balance. Instead, they’re very transactional – this makes sense when you think about it – what’s the point in pumping a bunch of spend through your card, if the benefit you receive in points is wiped out by interest being charged?
S0 – a low spending customer who revolves a balance and is charged interest, could quite easily be MUCH more profitable to an issuer than a high spending customer who pays no interest at all. Hence the disconnect when customers who see themselves as “high value” aren’t necessarily rated that way by their issuer’s retention algorithms, and aren’t offered fee waivers and such.
That being said, there are always exceptions, and not every issuer has a sophisticated retention policy and/or system. At the end of the day, if you don’t ask, you won’t get!
Issuers must be hoping on average that people mess up and spend beyond their means. Because I don’t think the differential between ‘points’ and ‘merchant fee’ is that large. For example, Coles or Woolworths would have to be paying AMEX/CBA a %1.3 merchant fee, which I roughly calculated to be the discount if I use AMEX and convert the points into vouchers.
The day you realise you can no longer pay off your credit card (especially the high interest rate rewards variety), you should cancel it and approach the bank for a personal loan or a redraw on your home loan.
I’ve just switched our home loan to Westpac (to go from %4.52 to %3.99 rate) and am about to cancel the CBA credit card, I wonder what they will offer if anything to stay..
Annual fee is coming up – called and asked for a waiver, rejected by the cust. service rep initially but full waiver by the retention team upon threatened to cancel cards. This is the 3rd year (commbank also runs 1st year free for new customers promo at present) with full waiver on this account. Accepted offer.
ANZ FF Black – last 120 days spent $23k
Annual fee charged last week – called and asked for a waiver/refund, rejected by both cust. rep and retention rep. Retention team won’t budge so cancelled card accordingly with full annual fee & reward fee ($425) reversed.
Spoke to cancellation team about my end dates and fees. annual fee is $349 (originally came with 100000 ff points) never threatened to cancel as this isnt something i wanted to follow through on if bluff was called
Asked straight out if they could waive or reduce fee, was told that that dont offer that option..
Was reminded about the great benefits on the card….. which are pretty decent. 2x lounge passes and 1 free domestic return flight per year (i go to Canberra which usually cost me $440 anyway)
But kept mentioning that it originally came with points and the anniversary coming up that wouldn’t give me any new points or new benefits
Again told about ‘amazing benefits i have access to’
So basically just asked if they have any incentive for me to retain that card. anything to sweeten the deal exact words used
after a 5 minute hold i was offered 8000 FF points as an incentive to keep the card
I’m not a huge spender. maybe $10k a year?
Happily took them. not a huge bonus but certainly something…
I was successful in getting annual fee of $129 waived in May 2015 before anniversary.
They have since changed their offering, so new card members have to pay 1/2 annual fee in first year.
When I tried to get annual fee waived today in May 2016, the best they could offer was also 1/2 annual fee to keep me on (~$65).
Not bad, considering one of their changes was to introduce an annual $129 Virgin airline credit. However, this was not for me, and I cancelled the card.
The tactics I used were to mention that I have other cards without annual fee, that the point reduction they’d introduced recently makes the card a less appealing prospect at that annual fee rate, but I would continue to use the card if the annual fee could be waived for this year.
Held for 1 year, spent about 150k over the year. Only offered half the annual fee to keep the card, accepted it.
1 year user, spent approx 20-30k during the year. A 8k transcation was done at the 11th month. Offered me annual fee waiver.
The circumstances that may have influenced ANZ not to retain the business may be that my custom was mortgage broker introduced, and ANZ policy is not to interfere with those customer but I wouldnt have thought this extended to cards, particularly that my home loan was refinanced away last year. The clue to this is that she handled the closure so fast, I dont think she would have had time to assess anything else.
Other things that might have helped, is that my first Annual fee was due in a couple of weeks, maybe that get so many cancels in that period that they cant be stuffed.
My spend was about $3000pm for about 10 years, not so high, and no late payments.
Regarding the Citibank Platinum Rewards, did you have to spend a lot (card usage) to get a waiver every year ? Thanks.
I then asked the card to be cancelled on its anniversary. She transferred me yo a guy from the “retention” section. The guy offered me the half of $395 annual fee. Since the girl pussed me off, I asked the account to be cancelled. Now I have the ANZ black rewards. No annual fee for the first year, will see how I will go on the 2nd year.
I was transferred to a relationship manager as I was “considering my options” and wanted to give Citi a chance to retain my business as my other bank was courting me to move my business.
I asked what they could do to retain me given I’ve put through alot of spend and the tenure of my relationship with Citi.
They offered half price fee @ $350 and on pushing a little more 10,000 Citi rewards points.
Pretty happy. Best card on the market IMO.
I’ve cancelled.
2 days before my anniversary date (ie would have had to pay $425 annual fee) I called them up to cancel the card. IE Negotiate for a better deal.
They would not waive the fee and would not (or could not) give me back the old $150 fee for my ANZ Platinum (it is $295 nowadays). I have now cancelled the card and after an 18 year Credit card relationship and I might just cancel my entire (since 1988) savings account relationship with them as there is no need to stay with them anymore.
Mentioned as well that Westpac Black card, giving a free annual fee for the first year.
Rep put me on hold and waive my account fee for 1 year.
Initially they were offering me 50% discount on the renewal fees, after me bringing in “cancellation”, Amex agreed to waive it completely if I add two utility bills payment as a standing instruction on the card
I agreed and got it waived
I then called ANZ who wouldn’t match the fee waiver despite the fact this was my regular spending card. They only offered to waive one part of the the $95 fee so I’d get the card for $40. NAB had the same benefits so I cancelled my ANZ and started regularly using my NAB one instead.
So all I did was saying I was disappointed with the change and many of my friends (ie. you guys!) got their annual fee waived. So they waived it for next year! As it’s not my primary card now as I have the citiprestige, I’m happy to just let my parents use it for another 12 months. Once my credit score recovers, I’ll just sign up something else better and cancel this one.
After receiving my bonus points on the Qantas FF card, I decided to cancel it but keep my Rewards Platinum until I made minimum spend. ANZ acknowledged that I had paid the $95 annual fee on the Qantas card, so they pro rata refunded/credited that $95 fee to my Rewards Platinum card! Bonus!
End result is that both cards were virtually $0 annual fee for the first year. Not quite a fee waiver but still something to be aware of/worth asking for if multiple cards are kept with the same bank.
So in total, I only paid the $199 fee the first year (for 50k QFF points), and received 2 QC invites that year, and paid no fee for the next 2.5 years for a total of 6 more QC invites.
But if they are happy to offer it for free, then I might as well keep it just as a secondary card for my parents to use.