One year on from the RBA points apocalypse: the best cards of 2018
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Executive Traveller may receive a commission when you apply for these credit cards via our links.
The information provided on this page is purely factual and general in nature. You should seek independent advice and consider your own personal circumstances before applying for any financial product.
July 1 marks one year since the Reserve Bank of Australia introduced a cap on domestic credit card ‘interchange fees’, which prompted almost every Aussie bank and credit card issuer to rethink their points-earning plastic: hiking fees, cutting back those points or even a combination of both.
The changes also brought an end to bank-issued American Express cards from the likes of ANZ, Commonwealth Bank, NAB and Westpac, which traditionally provided a higher number of points per dollar spent than Visa or Mastercard: heralding an all-out 'points apocalypse' for Australian banks, but not for cards directly issued by American Express or Diners Club, on which the fee cap doesn't apply.
So, if you’ve been using the same credit card for years – or you’ve been a little lazy, relying on your old ‘backup’ Big Four Visa or Mastercard long after the attached, higher-earning AMEX card was axed – now is a good a time as ever to make sure your credit card strategy is still a rewarding one.
Whether you’re chasing points or perks, take a look at these top cards and see how they compare to your existing frequent flyer strategy.
The best credit cards for earning points on everyday purchases
With a high earning rate of 1.5 frequent flyer points per $1 spent on most purchases, uncapped, the Qantas AMEX Ultimate Card, the AMEX Velocity Platinum Card and the AMEX Explorer Card continue serving up points in generous quantities, while also providing added extras to help take the sting off the annual fees.
On the Qantas Ultimate Card, AMEX includes a yearly $450 Qantas Travel Credit – which you can spend on Qantas flight bookings via the AMEX website – to offset the card’s $450 annual fee: so if you’d have spent $450/year on Qantas travel anyway, the card is practically ‘free’.
Read: How to spend your free American Express travel credit
The similar Velocity Platinum Card instead includes a free return flight with Virgin Australia, two Virgin Australia lounge visits and two visits to the American Express lounges in Sydney or Melbourne every year, to help negate the $375 annual charge: plus a bonus 100 Velocity status credits every year that you spend $50,000 or more on the card.
Operating a little differently, the AMEX Explorer Card kicks things off with a yearly $400 travel credit to more than offset its $395 annual fee, but earns points in the AMEX Gateway program which can be converted to numerous global programs including Singapore Airlines KrisFlyer and Cathay Pacific Asia Miles (and Velocity too), again providing the equivalent of 1.5/$1 spent after conversion.
Another solid contender is the American Express Westpac Altitude Black Card, available when paired with a Westpac Altitude Black Mastercard. Converting your points to Velocity, the AMEX provides 2.5 Velocity points per A$1 spent abroad, and 1.5 Velocity points per $1 spent on most purchases in Australia: except for government transactions which provide 0.5 Velocity points per $1 spent.
We’ll also flag that the Diners Club personal charge card can provide a higher two Velocity points per $1 spent on everyday purchases via Diners Club Rewards, but only when a companion Mastercard is attached to the same account (even if you don’t use it), and of course, only in the places where Diners Club is accepted.
The best all-round card for perks: AMEX Platinum Charge Card
Although the cards above do provide more points per dollar spent on regular purchases, the AMEX Platinum Charge Card is unbeaten in Australia when it comes to perks, ranging from airport lounge access to complimentary elite status with airlines and hotels, and travel credits, too.
For starters, cardholders get access to Virgin Australia domestic lounges whenever flying with Virgin Australia, and to Delta Sky Club lounges whenever flying with Delta, joined by two complimentary (unlimited) Priority Pass lounge memberships, access to AMEX Centurion Lounges, and more.
Read: Five hidden lounge perks of the AMEX Platinum Card
There’s also a free boost to Hilton Honors Gold, Shangri-La Golden Circle Jade, SPG Gold, Radisson Rewards Gold Elite and Hertz Gold Plus Rewards Five Star statuses, plus a fast-track to Star Alliance Gold through Shangri-La’s separate partnership with Singapore Airlines after taking just three flights.
Also read: Secret benefits of the AMEX Platinum Charge Card, including Star Alliance Gold
Among the many other perks is a $300/year travel credit, partially offsetting the Charge’s $1,200 annual fee, and you can boost that to $700/year by requesting a complimentary Platinum Reserve card from AMEX, on which the annual fee is waived for Platinum Charge Card customers and features its own $400 travel credit, reducing the next cost of this card to $500/year for everything else.
You can also earn the equivalent of three frequent flyer points per $1 spent at most AMEX-accepting restaurants in Australia; two points per $1 spent with hotels, airlines, car hire companies and all overseas purchases; 0.5 points per $1 spent with utilities, insurers and government bodies, and 1 point per $1 spent on everything else.
Best Visas, Mastercards for earning Qantas Points
American Express is great where it’s accepted, but for those times when it’s not, a high-earning Visa or Mastercard is the next-best option to keep those points flowing in.
For Qantas Points in particular, it’s hard to overlook the Qantas Premier Platinum Mastercard, serving up one Qantas Point per $1 spent in Australia up to $10,000 per month and 0.5 Qantas Points per $1 spent thereafter, plus a higher earn of 1.5/A$1 spent overseas without limit, and bonus points on Qantas purchases.
Also ranking high is the ANZ Frequent Flyer Black Visa, offering one Qantas Point per $1 spent up to $7,500 per month and 0.5/$1 thereafter, with its $425 annual fee reduced to a net cost of $225 in year one by the promise of $200 back on your statement when you make an eligible purchase in the first three months.
That’s compared to a flat $299/year on the Premier Platinum card which applies from year one, with ANZ’s card also including discounts on paid Qantas Club membership of up to $497 in the first year, far outweighing the annual fee – a perk not offered on the Qantas Premier card.
Best Visas, Mastercards for earning Virgin Australia Velocity points
Over at Velocity, the best ‘non-AMEX’ cards for earning points both happen to be Visas, with Virgin Money’s Velocity High Flyer card dishing out one Velocity point per $1 spent on most purchases up to $8,000 per month, and 0.5/$1 thereafter, uncapped.
A $289 annual fee applies, but the card offers a $129 Virgin Australia flight voucher every year to reduce that ‘cost’, along with two complimentary Virgin Australia lounge passes every year, being Australia’s best Visa (or Mastercard) for earning Velocity points.
ANZ is also a contender here with its Rewards Black Visa providing the equivalent of one Velocity point per $1 spent up to $5,000/month via the ANZ Rewards program, and 0.5 Velocity points per $1 spent beyond that, uncapped, aside a $375 annual fee that’s reduced in the first year with $100 back on your statement when you make one eligible purchase in the first three months.
Best Visa/Mastercard for earning Singapore Airlines KrisFlyer miles
The Singapore Airlines KrisFlyer program offers some attractive redemption rates: particularly for flights in business class and first class, making it another popular option for Aussie spenders, with the best ‘not-an-AMEX’ card for KrisFlyer miles being the St. George Amplify Signature Visa.
Through the Amplify Rewards program, you’ll first earn the equivalent of 0.75 KrisFlyer miles per $1 spent on the Visa, uncapped – boosted to a total of 0.825 KrisFlyer miles per $1 spent when the bank’s 10% ‘birthday bonus’ arrives in the month of your special day, giving you a 10% boost on all the Amplify points you’ve earned over the past year.
Of course, you could be earning a higher 1.5 KrisFlyer miles per $1 spent by using the AMEX Explorer credit card, but as far as Visas (and Mastercards) go, St. George’s card tops the charts.
Disclaimer
Executive Traveller may receive a commission when you apply for these credit cards via our links.
The information provided on this page is purely factual and general in nature. You should seek independent advice and consider your own personal circumstances before applying for any financial product.
Qantas - Qantas Frequent Flyer
10 May 2012
Total posts 134
Chris, your comment here may be untrue "and you can boost that to $700/year by requesting a complimentary Platinum Reserve card from AMEX, on which the annual fee is waived for Platinum Charge Card customers and features its own $400 travel credit, reducing the next cost of this card to $500/year for everything else". I've contacted AMEX today and they replied the reserve card is no longer available to new applicants. Are you able to verify?
24 Apr 2012
Total posts 2432
We've verified that the Reserve card is still available (and complimentary) for Platinum Charge and also Centurion cardholders – we wouldn't publish as much otherwise – you just can't apply for the Reserve unless you have the Platinum Charge (or a Centurion Card) as the Reserve is no longer available to the general public.
If you have the Plat Charge, we'd suggest calling back and asking again: get the right person and they'll email you an application form which you'll need to complete and return.
Alternatively, you can log into your Platinum Charge account on the AMEX website, browse to 'Benefits & Help', click 'Platinum Benefits', then 'Platinum Service', then expand the 'Additional Cards' section, and you'll see the following, which provides more information on the Platinum Reserve and a direct link to the application form (which you'll have to print out and return: there's no online application for this, as applications have to be manually approved after confirming you're a Plat Charge or Centurion cardholder):
[Click the image above to expand it.]
QFF
16 Nov 2014
Total posts 15
For Qantas Points I dumped the Westpac Amex / MasterCard option due to the removal of Amex (and also because Westpac took virtually 10 months from joining to pay me the bonus points!). Went with the Qantas Amex Ultimate which as you say is virtually free with the travel credit. For the Visa side of things I went with HSBC which is worth considering at $199 per year and $1 per point earn rate and a 60000 Qantas Points joining bonus when I did. In both cases of Amex and HSBC the joining credit was paid virtually within two or three weeks of the qualification criteria being satisfied. Westpac should be ashamed of themselves for their laggardly performance on payment of the joining bonus and I would not recommend them to anyone for exactly that reason.
Qantas - Qantas Frequent Flyer
06 Nov 2014
Total posts 357
Problem with HSBC is that 1:1 point earn is up to $2500 only then 0.5 until capped at 7500 per statement. Also it doesn't earn points for any government spent which is quite restricted.
QFF
16 Nov 2014
Total posts 15
Michael, I was aware of the restrictions on the HSBC card but ss the Amex is used for 70% of my spending or so the HSBC is the necessary second card when Amex is not accepted. Point caps therefore do not worry me in this case.
QFF
16 Nov 2014
Total posts 15
Obviously all of these card options are a juggling act between points earn, any points bonus and annual cost so every personal combination is different.
05 May 2016
Total posts 616
These changes have made it such that churning to different cards is the way to accumulate points fast is even more the case than before.
24 Apr 2018
Total posts 13
Yes it's not even close for me. The only considerations for me are bonus points and the first year annual fee. Been doing 2 or 3 a year for 4 years now and no issues with approval. Also approved for a home loan (recently) and it never came up, just what cards I had open at that time and their aggregate limits. Anything that impacts your credit but doesn't impact your home loan eligibility isn't having much of an impact at all, in reality.
QFF
16 Nov 2014
Total posts 15
Totally agree that churning banks is the best way to pick up points bonuses. Have likely done three banks in 4 years for that reason. (Apart from the points bribes they do not do anything for me so I have no great loyalty to them). If however your card is paid automatically on the due date, as mine is, cannot see how your credit rating would be affected. Is there any actual evidence of this?
11 May 2018
Total posts 11
Credit rating is affected, when you apply too many cards in a short period of time.
27 Jun 2018
Total posts 1
Sad to see my Amex platinum with commbank going and losing the 0% international transaction fee. Does anyone have any suggestions for the next best card to earn point with no international transaction fee?
07 Jun 2018
Total posts 14
Drgmarshall: what Chris wrote is correct.
03 Nov 2014
Total posts 90
If you happen to be a CPA you get $250pa off the annual fee - so net cost becomes $250...an absolute bargain for the perks on offer!
QFF
16 Nov 2014
Total posts 15
19 May 2016
Total posts 15
Given that you're only allowed to have two Amex cards at any one time, if you have a Platinum Charge card and also a Platinum Edge (eg for supermarkets and fuel), is it possible to get the Reserve Card to as a Charge card customer? The only reason I'd want it is that $400 travel credit!
24 Apr 2012
Total posts 2432
The 'two card' limit was changed some time ago: AMEX tells me that you can now have up to four credit cards issued directly by AMEX as a primary cardholder (all personal and business cards contribute to that tally, including the David Jones cards, Westpac cards and the Platinum Reserve), plus an unlimited number of charge cards - all subject to the usual credit lending criteria, etc.
07 Jun 2018
Total posts 14
The hound,
Virgin Australia - Velocity Rewards
16 Dec 2015
Total posts 41
And with the RBA introducing these changes, where are the benefits to consumers?
Qantas - Qantas Frequent Flyer
10 May 2012
Total posts 134
Thanks for verification Chris. I’ll try again.
24 Apr 2012
Total posts 2432
drgmarshall: Check your PMs on the site - I've sent you a direct number to call at AMEX to get this fixed up.
Cathay Pacific - The Marco Polo Club
26 Jan 2015
Total posts 7
What card would be best for ASIA MILES
24 Apr 2012
Total posts 2432
We plan to run an article on that very topic very soon, so stay tuned!
31 Jul 2012
Total posts 20
HSBC have 1:1 on a MasterCard on their Premier card, but requires qualification ($500k+ borrowing or investment) and a $35/month fee. Good card but HSBC have to be one of the worst banks to deal with. You can’t get the card without having the above invested with them. About to cut mine up as we’re refinancing our loans elsewhere.
QFF
19 Sep 2013
Total posts 205
Now that I've mostly retired and about to lose my CBA Amex card, I'm presuming there's no hope of obtaining another Amex card?
Qantas Frequent Flyer
13 Mar 2015
Total posts 5
Pardon my ignorance but would Miles & More also be applicable to LX?
Qantas
15 Jun 2016
Total posts 14
Mr Mink, Zapz is on the right track regarding credit rating impacts with "when you apply too many cards in a short period of time".
Every credit application (loan, card) you make gets referred to a credit rating agency and that referral adjusts your credit score. So if you have a credit score of 800 and apply for a new credit card (regardless of approval) your credit score could be adjusted to 750. Unless your score goes below 500 you are unlikely to be refused, but if the credit rating agency reports that you have made 3 credit card applications in the past 3 months even with a score of 800 this can raise a red flag.
Repayments on time, full amount or credit card minimum amounts, don't affect your credit ratings, only delinquent situations reported by financial institutions to a credit card agency will impact your credit ratings.
You can subscribe to any credit card agency, such as Credit Savvy, for free and watch your credit rating movements.
So Mr Mink, your one credit card a year application ratio is hardly to raise an eyebrow (refusal), unless your other finances are messy.
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