Store Cards Australia 2025: Benefits, Risks & New Rules

Store cards have become a regular fixture at Australian checkouts, tempting shoppers with special discounts, loyalty points, and interest-free deals. But as 2025 brings new financial regulations and a tighter cost-of-living squeeze, it’s time to take a closer look at the true value—and risks—of these cards.

What Are Store Cards and How Do They Work?

Store cards are credit cards issued by major retailers or in partnership with banks, designed to be used at a specific chain or group of stores. They’re marketed with exclusive perks—think 10% off your first purchase, birthday vouchers, or early access to sales. Unlike traditional credit cards, they often have lower credit limits and fewer acceptance points, but can carry higher interest rates.

• Big names: Myer, David Jones, Harvey Norman, and Kogan all offer their own cards.
• Common perks: Points for every dollar spent in-store, extended interest-free periods, and VIP shopping events.
• Drawbacks: Limited usability outside the issuing store, and interest rates that can exceed 25% p.a.

For example, a $1,200 fridge purchased on a store card’s 12-month interest-free deal might seem savvy—until a missed payment triggers a 26% interest rate, quickly eroding those savings.

2025 Policy Updates: Stricter Rules and Consumer Protections

This year, Australian regulators have zeroed in on store cards as part of a broader push for responsible lending and fairer consumer credit. The Australian Securities and Investments Commission (ASIC) rolled out new rules in March 2025 targeting high interest rates, aggressive marketing, and transparency.

• Interest rate caps: Most new store cards can’t charge more than 20% p.a., down from previous highs of 28%.
• Enhanced disclosure: Retailers must provide a clear, up-front comparison of store card costs versus major credit cards.
• Crackdown on unsolicited offers: Retailers can no longer pre-approve or upsell store cards without explicit consent.
• Mandatory hardship support: Card issuers must offer tailored hardship assistance for customers struggling with repayments.

In practice, these reforms mean clearer contracts at the point of sale and fewer nasty surprises if your financial situation changes. But experts warn that legacy cards (issued before March 2025) may not immediately benefit from all these protections, so it’s worth checking your card’s terms or considering an upgrade.

Store Card Strategies: When to Swipe and When to Skip

With the right approach, store cards can deliver genuine value—especially for loyal shoppers who pay off their balance in full each month. But they’re not for everyone. Here’s how to get the most from your card without getting burned:

• Pay on time, every time: Interest-free deals only work if you never miss a payment. Set up direct debits or reminders.
• Crunch the numbers: Compare the cost of a store card to a regular low-rate credit card or buy-now-pay-later plan. Is the loyalty program worth it?
• Watch out for fees: Many store cards charge annual fees ($25–$99), late payment penalties, or high cash advance rates.
• Limit your credit exposure: Multiple store cards can hurt your credit score and make it harder to access other finance.
• Know your rights: If you feel pressured at the checkout, remember you can always say no—or take the paperwork home to review.

Case in point: After 2025’s reforms, Ella from Sydney saved $120 in annual fees by switching her department store card to a no-fee option, while still enjoying member sales events. Meanwhile, Ben in Perth avoided a potential $300 interest sting by paying off his electronics store card before the end of the promotional period.

Conclusion: The Store Card Equation in 2025

Store cards remain a double-edged sword in Australia’s evolving retail landscape. The new rules in 2025 offer more protection and transparency, but the basic principles haven’t changed: these cards are best for disciplined, regular shoppers who pay on time and avoid carrying a balance. For others, the risks may outweigh the rewards.