Westpac will reduce the interest rate it charges on its Virgin Money-branded credit card from this weekend, the Financial Review reports. The newspaper does not say what the new rate will be. Westpac charges an interest rate of 12.4 per cent on the credit card at present.The planned rate reduction appears to be an effort to reposition the Virgin Money card as a recognisably low-rate credit card in a market where there are a number of credit card products with rates of less than 10 per cent, and more at rates of less than 11 per cent.The Virgin Money card attracted hundreds of thousands of new customers to Westpac in its first year (the AFR reports this is now 600,000) though the bank rejected about every second application for the card, a factor that at one stage was a cause for angst with the bank's alliance partner, Virgin, whose brand Westpac exploits.The AFR reports that the GE Money-issued Wizard Home Loans low rate credit card has more than 25,000 cards in the market, while Aussie Home Loans has more than 70,000 cards and receivables of more than $260 million.The AFR also reports that Commonwealth Bank plans to issue a low-rate credit card.Meanwhile the Australian reported that Westpac would increase fees on many common consumer bank transactions. The new fees include a rise in the "foreign bank ATM" fee to $2.00 per withdrawal, up from $1.50. Westpac will also increase the monthly account keeping fee on its Classic transaction account to $7.50 from $5, and will also increase fees on dishonours and overdrawn accounts, to $50 a time from $40.This latter category of fees have come under attack from the consumer lobby in the past as being excessive and in breach of the law, which requires such fees to be based on costs incurred. Banks have, however, defended the level and legality of such fees.David Jones pushes into personal loans