Commbank Neo Credit Card. The fees, rates & info

Are you searching for a credit card to simplify spending in Australia or when travelling overseas? You may understandably feel overwhelmed by the number of options available or concerned over the associated interest rates.

One of the Big Four banks in Australia, Commbank offers a variety of products in this space, including an interest-free option – the Neo Credit Card.

In this guide, we’ll review this card covering its features, benefits, limits, fees and other key details so you can make the most informed choice for your needs.

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The Commbank Neo Credit Card

Advertised as a ‘new’ way to pay, the Commbank Neo card is a basic credit card with no unexpected charges, late fees or interest repayments. Instead, a single monthly fee is levied – meaning no interest percentages to calculate or pay.¹

Who is this credit card for?

If high interest rates on your spending are a concern, the Neo interest-free card may be a good solution since it charges a monthly fee rather than an interest percentage.¹

A low-limit credit card with no interest on purchases, this card may be appealing to those seeking a comparably inexpensive and easy credit card solution. However, it does have some limitations that may make it unsuitable for some users which we’ll look at further on.

The main features and benefits of the Neo Credit Card

As advertised, the Neo Business interest-free card from CommBank has no interest payable on purchases. Other features you can expect with this card include¹:

• A choice of three credit limits to suit your needs
• A predetermined monthly fee based on your chosen card limit
• No monthly fee if the card has zero balance and hasn’t been used in that month
• No foreign exchange or additional cardholder fees
• Cashback benefits for eligible cardholders via CommBank Yello Cashback Offers in the CommBank app

Commbank Neo Credit Card rewards

Currently, the Neo Credit Card does not offer award points for associated spending on the card.¹

The cons of using this card

There are a few limitations associated with this card, such as¹:

• A maximum credit limit of AUD$3000
• Cash advances are not permitted
• Extras such as international travel insurance are not included
• Not being eligible for SurePay plans or Wealth Package benefits
• No rewards program

The credit limits you get with this card

The card comes with three credit limit options to choose from¹:

• AUD$1000
• AUD$2,000
• AUD$3,000

As with all lenders, the approved credit limit will be based on individual credit approval criteria being met.

Can the credit limits be changed?

While Commbank indicates that you are permitted to change the card limit up or down within the set limits, should you need a higher maximum limit, this is not offered.¹ As such, this will likely require a change to an alternate card product.

What are the fees for this card

The fee structure for this card is different from other offers in the market as there are no interest charges, only a monthly fee which is based on your approved credit limit. As mentioned earlier this fee is not charged if you do not use the card during that month and have zero balance owing.

The table below outlines this in further detail.

Fees*	Commbank Neo Credit Card¹
Monthly maintenance fee	AUD$15 for a $1,000 limit AUD$20 for a $2,000 limit AUD$25 for a $3,000 limit If no purchases are made in a month, and you pay your total balance owing in full, no fee applies for that month.
Annual fee	No annual fee applies
Interest rate on purchases	0%
Late repayments	AUD$0
International transaction fee	AUD$0 NB: Fees may be charged by the third party handling the transaction
Cash withdrawal or advance rate	No cash advances permitted with this card
Additional card holders ( 1 only)	AUD$0

*As seen on 08 July 2024

It is also worth noting that should you alter your limit within the given statement period, the applicable fee charged will be for the new limit chosen.

For example, if you decrease your limit from AUD$3000 to AUD$1000, the lower fee for the AUD$1000 limit will be charged for that period.¹

Commbank Neo Credit Card exchange rate used

When using your Commbank Neo Credit Card overseas to spend in a foreign currency, this will be converted to AUD using either the Visa or Mastercard rate depending on the scheme in use.²

For Mastercard:

A transaction that is made in a foreign currency other than United States dollars is converted into United States dollars before being converted into Australian dollars.

For VISA:

A charge that is made in United States dollars, Canadian dollars, New Zealand dollars, Singapore dollars, pounds sterling, euros and Japanese yen is converted directly into Australian dollars.

If we compare, for example, a USD$1000 transaction into AUD using Mastercard against the same transaction handled by Wise, we can see if there are any differences.

MasterCard³	Wise
Spending USD$1000 will cost you AUD $1490.31 (excluding any bank fees)	Spending USD$1000 will cost you AUD $1478.69 (inclusive of a 0.33% variable fee of USD$3.29).

As seen on 8 July 2024

Wise utilises the mid-market exchange rate with no margins added. With Wise, the rate you see above is what you get once the conversion fee is deducted.

It’s all transparent and you can see upfront what fees you pay and how much you’ll get once you convert your money. Have a quick play with our currency calculator here to see the latest fees and exchange rate.⁶

How do you get a Commbank Neo Credit Card?

To apply for a Commbank Neo Credit Card as an existing customer, you can do so via the NetBank portal and using your saved details.⁴

Alternatively, if you are a new customer you can apply online in around 20 minutes by following the below steps⁴:

• Click ‘Apply Now’ from the Neo Credit Card information page
• Complete the application form advising Commbank of what you earn, spend, owe and own
• Select your preferred credit limit
• Upload your ID and other required documentation
• Submit your application and wait for approval

What are the eligibility requirements for getting this credit card

To be eligible to apply for this credit card, Commbank requires that you⁴:

• Are at least 18 years old
• Have the legal right to work in Australia, visa proof may be required for non-citizens
• Are not currently bankrupt

They also ask that you read and make sure you understand the Key Facts sheet and Important things to know about credit cards information provided on their website.

How long does it take to get the card?

Subject to approval, Commbank advises that it can take up to 7 business days for your new card to arrive.⁵

What else do I need to know?

Before deciding if the Commbank Neo Credit Card is right for your needs, we advise considering the following points:

• While no interest is appealing if you put minimal spending on the card and clear it each statement period, you may end up paying more in fees than you would with a standard credit card with interest
• If you are someone who consistently clears their statement balance and therefore would typically never accrue interest, an alternate card with added extras such as insurance or rewards may be more worthwhile.
• The restriction on cash advances may make this a less suitable option for those using this as an emergency backup option at home or overseas

Contacting Commbank

To speak with Commbank regarding their Neo Credit Card offer or for help using the card, you can contact them at:

• 13 22 21 in Australia between 8 am and 7 pm Monday to Friday or from
• 9 am to 2 pm on Saturdays
• (AEST)
• +61 2 9999 3283 when overseas 24/7

If you are an existing customer, you may also like to contact them via the Commbank app or the Netbank portal.

The Wise Account and Debit Card

With a Wise Account you can hold money in 40+ currencies and spend it in 150+ countries. You can also order local account details in popular world currencies like AUD, NZD, USD, EUR, GBP to receive local and/or international payments like a local.

Whenever you exchange currencies it’s done using the mid-market rate with a transparent conversion fee shown upfront.

To make everyday spending easier you can order a Wise Debit card for your Wise Account and generate virtual cards as needed. If you have the local currency in your Wise Account the Wise card will use it. If you don’t have local currency converted, it uses smart technology to auto-convert your money at the mid-market rate, for a conversion fee.

The Wise card may suit you better if you’re to spend money that you’ve stored in different currencies within an existing Wise Account, and benefit from 2 or less free cash withdrawals under $350 AU, or foreign equivalent, per month (keep in mind that ATM providers may charge their own fees). You can see our full fee breakdown for ATM withdrawals here.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

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Sources:

1. Commbank - Neo Credit Card
2. Commbank - Foreign Currency Conversion
3. Mastercard - Exchange Rates
4. Commbank - How To Apply
5. Commbank - Delivery
6. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.

Sources checked on: 8 July 2024