ANZ to limit Qantas frequent flyer points on credit cards
By Chris C., September 3 2014
ANZ will cap the number of Qantas frequent flyer points you can earn monthly on its range of Visa and American Express credit cards from October.
The new points capping arrangements also encourage spenders to move transactions across from their higher-earning ANZ American Express cards to the companion ANZ Visa card, which can earn as little as half a point per dollar spent.
The cards affected are both the ANZ Frequent Flyer Platinum and the ANZ Frequent Flyer Classic cards.
ANZ’s top-tier Frequent Flyer Black cards remain uncapped, with the bank’s line of non-Qantas ‘Rewards’ cards also unaffected by the shake-up.
Existing customers will find the caps progressively introduced throughout October, with the bank providing each affected cardholder with four weeks written notice of the changes ahead of when it applies to their particular account.
Applications for the affected cards received on or after September 24 2014 are immediately bound by the points capping rules, while those received before that date will be given the same four-week notice period ahead of the new points caps.
How many points can I earn?
Base-level ANZ Frequent Flyer Classic members can earn points on the first $3,000 spent each month on the American Express card, plus on the first $3,000 of monthly Visa spend.
At one point per dollar on the AMEX and half a point per dollar on the Visa, that totals a maximum of 4,500 points each month or a miserable 54,000 points each year if hitting the full monthly caps.
If you instead spend the full $6,000 on your American Express card, you’ll still earn points on the first $3,000 charged each month – giving customers the choice of either using their AMEX to earn no points for the remainder of the statement cycle, or switching to the Visa and its lower earning rates.
ANZ Frequent Flyer Platinum sees the monthly capping figures doubled to $6,000 on both the American Express and the Visa.
Piling up 1.5 Qantas Points per $1 on the AMEX and 0.5 points per $1 on the Visa, cardholders can earn a maximum of 12,000 points each month – with up to 9,000 of those stemming from the high-earning American Express card.
Over a year, that’s 144,000 points, or 108,000 points at the advantageous 1.5 points per $1 rate.
Both the Classic and Platinum Visa and American Express cards also pay out an extra point per dollar spent on Qantas flights charged in Australian dollars, plus on Qantas Club and Qantas Frequent Flyer memberships.
That’s not affected by capping, so even if you’ve exceeded your monthly threshold for frequent flyer points, you’ll still earn the Qantas bonus.
Pocket 40,000 Qantas, Velocity points for $250, $150 with NAB
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Chris is a a former contributor to Executive Traveller.
Thai Airways International - Royal Orchid Plus
15 Jan 2013
Total posts 455
I only have the base cards and with a one Grand limit at most.will these changes affect me.
Qantas - Qantas Frequent Flyer Platinum
07 Feb 2013
Total posts 548
You are joking right?
24 Apr 2012
Total posts 2432
Hi franz,
As detailed above, the points capping on ANZ Frequent Flyer Classic cards only kicks in after spending at least $3,000 each month, so unless you're maxing-out the card and paying it off in full several times each month, these changes won't affect you.
-Chris
Qantas - Qantas Frequent Flyer
03 Sep 2014
Total posts 3
This will affect me. I am going to shut down my Anz cards and switch to the everyday reward mastercard and another AMEX. Poor form Anz.
27 Mar 2014
Total posts 39
Pity about that, I like ANZ's products... I have the Plat and don't hit the limits so should be ok for me, but also have the black as well due to a recent promotion, will see what happens when the 12 month is up and they want to charge the annual fee for it...
Virgin Australia - Velocity Rewards
18 Jun 2013
Total posts 24
So they suck everyone in over the last few months with 50K bonus QF points & then throw a cap on the earnings ...Its a no brainer , as soon as get my Bonus QF points ...it goes .
25 Sep 2013
Total posts 1242
I am assuming that high signup bonus is costing them a bit more than they expected.
Qantas - Qantas Frequent Flyer
20 Nov 2012
Total posts 68
Serioously, What is the point!
I thought the whole aim for credit card companies was to encourge you to spend money and they can earn on the merchant fees.
Now they are capping the points - its like shooting the tyres out of the car.
It just makes ANZ bank look like idiots. Someone screwed up the business case model on this one.
Qantas - Qantas Frequent Flyer
05 Sep 2014
Total posts 3
You hadn't mentioned Gold cards - same rules apply to them I presume?
24 Apr 2012
Total posts 2432
Hi theduk,
We didn't include Gold cards as the product has been discontinued (it's available only to existing customers who haven't yet moved to a different card type), but the capping limits are even lower than the ANZ Classic - $2,000/month is the threshold on both the ANZ Frequent Flyer Gold American Express and the ANZ Frequent Flyer Gold Visa ($4,000/month all up, but no more than $2,000 on each card).
-Chris
Qantas - Qantas Frequent Flyer
28 Sep 2012
Total posts 131
Interesting. Thanks for the heads up Chris. I'm a "use the card all month, pay it off when I get paid" kind of a guy, so the $295 annual fee was a well valued investment, given they earn no interest off me at all. Sure, ANZ get a fee from each transaction, but they make no more off me.
24 Apr 2012
Total posts 2432
Ever use the credit cards overseas?
The issuing banks generally reel in a higher percentage of the transaction value in fees paid from international merchants who accept foreign cards, plus most of the banks (including ANZ) also charge international transaction fees to their customers on the same transaction - so they benefit from a higher merchant fee per foreign transaction plus the international transaction fees charged to cardholders.
So if you're quite the overseas spender, chances are you're a profitable customer.
Qantas - Qantas Frequent Flyer
28 Sep 2012
Total posts 131
Chris,
Yes, fair point. Probably a few bucks are spent overseas. I'm thinking of swapping to the NAB card. .. Gives me 40,000 points just for taking the card.
That's worth the first year annual fee.
In a previous life i used to play credit card interest free for 6 months to stop paying interest. When one is poor, that can be an awesome investment. I juggled about $10k over about 5 years with no interest.
Now I'm super wealthy (!!!) I'm just a FF points whore!
20 Sep 2014
Total posts 1
Thanks Chris for a really informative article. I received the letter from ANZ but your article is great in gathering together alternative options to just accepting the change & staying with ANZ, so thanks for all the card comparison research you did.
Would the David Jones American Express Platinum be a viable option to move my spending over to in order to continue to get decent Qantas points? Its been offered to me at DJs whenever I've taken out my ANZ FF Platinum card to use, but I've always declined saying that the points are great with ANZ, but now the DJs card might be the go?
Qantas - Platinum (Lifetime Gold)
25 Apr 2013
Total posts 54
I received the letter last week - Chris did you arrive at $3K per card because you split the $6K across the two cards? The letter refers to $6K for the Visa Card "per statement period" and also to $6K for the Amex "per statement perior". It's not clear to me if that is a total of $12K on the combined cards or, as you seem to have deduced, $6K, i.e. $3K on each? How do others interpret it?
03 Jun 2015
Total posts 1
Hi Everyone
I am only new to the forum (joined today) and wondered if anyone could please confirm the below question when possible ?
Re: Earning Rewards Points (in particular QANTAS FF) on Tax payments to the ATO.
I have the following ANZ card - ANZ Frequent Flyer Black American Express, which according to this recent article below (dated 20th March 2015)
https://www.executivetraveller.com/the-five-best-credit-cards-for-paying-your-income-tax
states that payments made to the ATO via this card DO EARN POINTS, but obviously before paying out the card fee (1.45%) on the large amount of tax due, I wanted to first make sure that it would be worthwhile in terms of the Points v Fees applicable.
Many thanks
Jeff
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