Alliance Bank will introduce a new fee structure and reward changes on August 1, 2025. Early feedback has been mixed, with some cardholders welcoming lower charges while others express concern over the loss of fee waivers and reduced reward points.
· Alliance Bank will roll out a new fee structure and reward changes starting August 1, 2025.
· Early feedback shows mixed reactions, with some praising lower fees while others worry about losing reward points and fee waivers.
· This blog breaks down the new terms, contrasts these against old terms, delves into customer impressions and gives tips for affected cardholders.
Alliance Bank Malaysia is making big changes to credit cards from August 1, 2025, including rewards, annual fees, and service charges (e.g., cash advances and card replacement). Some customers support the changes, for instance with lower cash advance fees. However, others are disgruntled because they no longer get free cards unless they align with certain requirements. Reward points for groceries and dining are also lower.
Key Changes from August 1, 2025
Annual fee waivers
· Some cards will no longer be free, unless customers hold significant savings with
· Alliance Bank or a home loan.
Gold and classic cards will no longer receive waivers and are likely to be phased out.
Reduced cash advance fee
· Old fee: 5% (minimum MYR 15 [USD 3.20])
· New fee: 1.25% (minimum MYR 3 [USD 0.65])
Lower card replacement fee
· Old fee: MYR 50 [USD 10.65]
· New fee: MYR 18 [USD 3.85]
Who wins and who loses?
Winners
· Users of virtual or basic cards, which are now free for life.
· Customers who have more than MYR 100,000 [USD 21,275] in savings or a home loan with Alliance Bank, who will continue to enjoy lifetime waivers.
Losers
· Customers who previously earned fee waivers through spending but do not meet the new conditions.
· Those who valued higher reward points for daily spending, which are now reduced.
What should customers know?
· Waivers now depend on deposits or loans with Alliance Bank.
· Customers who do not meet these criteria may consider switching to a virtual credit card.
· The new rules apply if the annual fee falls due after August.
· Heavy spenders on groceries, dining and petrol may want to explore cashback alternatives.
Impact on young adults and first-time users
For many young Malaysians, their first credit card is a major financial step. Alliance Bank has long been a prominent choice for fresh graduates and students due to its free cards and excellent online services. Under the new framework, young people might not qualify for waivers unless they hold substantial deposits or a home loan, requirements few early earners can meet.
Previously, spending a certain amount each year could avoid annual fees. Now, asset- and loan-linked conditions could make Alliance Bank’s cards less attractive to first-time users.Alliance Bank’s credit card changes from August 2025 bring both benefits and drawbacks. While lower fees on cash advances and replacements are welcomed, many customers are dissatisfied with the loss of free cards and reduced reward points.
For comparisons across banks and real user reviews, visit BankQuality to find better options and strategies for managing your credit cards.