Point Hacks Credit Card Guide

Coles Rewards Mastercard – a great flybuys points earn rate with no international transaction fees

Coles Rewards MasterCard - $100 off a single Coles Supermarket shop

The Coles Rewards Mastercard earns flybuys points which can be transferred to Etihad Guest, Velocity Frequent Flyer or used at the checkout at Coles. There's a $89 annual fee, and the card also offers no international transaction fee on purchases.

  • $100 off a single Coles Supermarket shop for new customers until June 30th 2017 (terms apply)
  • Earn 2 flybuys points per dollar spent - with flybuys now transferrable to both Velocity & Etihad Guest
  • Equivalent earn rate of 0.87 Velocity points or 0.8 Etihad Guest Miles per $ spent, if transferred
  • No international transaction fee on purchases not in Australian Dollars
  • Combined flybuys and credit card - includes Coles Pay Tag for convenience
  • $89 p.a. annual fee
  • $100 off a single Coles Supermarket shop is activated on your flybuys account and available for use within 2 weeks of your first eligible purchase
  • To redeem the $100 off you must scan your flybuys barcode and spend a minimum of $100.05 after savings and discounts in one transaction at Coles Supermarket or BI-LO, excluding smoking/tobacco purchases and all gift cards
  • $100 can only be redeemed once and expires on 30th September 2017, and can't be used at Coles Express or Coles online
  • Offer available to new customers only and ends June 30th 2017

Find out more or apply →

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The Coles Rewards Mastercard has appeal to points collectors looking for a solid Visa/Mastercard with a number of good value features and flexibility in how you can redeem your points.

In particular, flybuys’ tie-up with Etihad Guest and Velocity makes this card appealing for those interested in frequent flyer points, especially with the reasonable annual fee of $89.

The current public offer is a $100 credit at Coles (note the terms and conditions on this above). flybuys also promote various offers to specific email recipients from time to time which may include bonus points.

This is a no-frills card designed for the everyday shopper – there are no travel perks such as lounge access – as it’s a supermarket-branded card after all.

When it comes to standalone Visa/Mastercard credit cards that earn points into flexible points programs with decent points earn rates, the options are very limited – and the Coles Rewards Mastercard deserves to be considered for its relatively low annual fee, a solid points earn rate from spend, and no international transaction fees.

Effective Frequent Flyer Program Point Earn Rates

Partner Frequent Flyer ProgramEquivalent partner points earned
Velocity Points0.87 points / $ spent
Etihad Guest Miles0.8 Miles / $ spent

Earning flybuys points with the Coles Rewards Mastercard

You’ll collect 2 flybuys points for every dollar you spend on the card. This is equivalent to a 1 cent discount on groceries (or when redeemed for gift cards or other products from the rewards store).

If you choose instead to transfer flybuys points to Velocity or Etihad, you’ll pick up 870 Velocity Points for every 2,000 flybuys points, or 4,000 Etihad Guest Miles for every 10,000 flybuys points transferred.

Reduced to a point per $ earn rate, this equates to 0.87 Velocity Points or 0.8 Etihad Guest miles per dollar, and you can transfer flybuys points to these programs at any time you choose.

In my experience points from purchases show almost instantly in my flybuys account as a daily sweep the day after purchases clear, rather than a monthly sweep which makes it easier to access the points for a redemption more quickly without having to wait.

No international transaction fees on purchases

The card joins a small but growing list of cards offering no fees on purchases that aren’t made in AUD. You’ll save the 2-3.5% commission some credit cards will charge you on overseas purchases and still earn points in the Australian dollar equivalent.

Free delivery at Coles online when paying with your Coles Credit Card

If you shop online at Coles and need to be able to book a more specific time for delivery than their free flexible delivery time option (already available to everyone), then the free delivery benefit as a cardholder is going to be useful – it’s available once you spend $100 or more.

It’s going to offer most value to the more frequent Coles online shoppers, naturally, but even those who shop online with Coles less frequently – but meet the $100 spend criteria – could find it useful to be able to select a delivery slot at no additional cost.

Combined flybuys and credit card, with Coles Pay tag

Not so much a feature of the account, but a nifty convenience. Your credit card comes with your flybuys barcode printed on the back, so one less card to carry around in your wallet.

You can also get a Pay tag to stick on the back of your phone, again pre-printed with your flybuys barcode (which can be quite convenient when using the self-scanner at Coles checkouts when shopping) and a contactless chip to use for PayPass without pulling your wallet out.

Pay tags aren’t issued for supplementary cards, unfortunately, which would be a handy win for households using the card with more than one cardholder.

Insurances and interest fee period on purchases

If you are approved for a credit limit of $6000 or higher you’ll be issued with the Platinum variant of the card, with all the same features but the addition of a limited Merchandise Protection insurance. You’ll need to read the PDS yourself to assess its suitability for you.

The card also offers up to 62 days interest free on purchases, which is one of the longest interest free periods on rewards cards in Australia.

With most cards offering 44 or 55 days (from the time a statement period begins until payment is due), and some of the recent devaluations cutting interest free days, this card has a clear benefit if you are looking for more interest free days on purchases.

What this means is that as long as you pay your full balance every month, the time between making a purchase on the card and having to pay it off is longer.

The longer the time period, the more time that money could potentially be working for you in other ways, such as sitting in a mortgage offset account saving you interest, or earning you even more points in a different account.

Note that you can’t use this card for business purposes

The PDS for the Coles Rewards Mastercard does state clearly that points won’t be earned for transactions deemed to be partially or wholly for business purposes as this is a card targeted at consumers for personal use.

The PDS does not explicitly exclude points being earned for government or ATO transactions, so if you have a personal tax bill to pay, you should be able to earn points on the transaction.

Summing up – Coles Rewards Mastercard

If you’re not in need of travel, lounge or other benefits from a Visa / Mastercard, and want to use a card that offers a solid rate of return in points from your day to day spend, the Coles Rewards Mastercard can make a fantastic addition to your wallet and offer you a solid alternative to the big bank offerings.

flybuys are an increasingly valuable currency that can be used for a vast range of redemptions, including your groceries, for flybuys travel, gift vouchers and, of course, for transfers to both Velocity and Etihad Guest.


Terms and Conditions:

Coles would like us to include the following Terms and Conditions.

New customers who apply and are approved for a Coles Credit Card between Monday 1st May and Friday 30 June 2017 and make a purchase (excludes cash advances) within the first 30 days of the card approval date will receive $100 off a single Coles Supermarket shop. $100 off will be activated on your flybuys account and available for use within 2 weeks of your first eligible purchase. $100 off will only be activated on the flybuys card quoted in the application process. To redeem the $100 off you must scan your flybuys barcode on the back of your new Coles Mastercard and spend a minimum spend of $100.05 after savings and discounts in one transaction at Coles Supermarkets or BI-LO (excluding smoking/tobacco product purchases and all gift cards). $100 off can only be used once and expires on 30 September 2017. Excludes Coles Express and Coles online.

Mastercard® and the Mastercard brand mark are registered trademarks of Mastercard International. Credit facility provided by Wesfarmers Finance Pty Ltd (ABN 58 601 282 455), Australian Credit Licence number 470916.


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Comments Expand Comments

  1. Joy

    On the Coles card you will get some points but there is a cost above cards like 28 degrees credit card or Citbank plus debit card.

    For the Coles Card
    For most merchants, if you pay charges in Aus Dollars you usually get a less than optimum exchange rate.

    If you pay in local overseas currency you pay
    Cross-border assessment fee:
    0.8% of the transaction amount when you withdraw cash from an ATM outside Australia or when you make a purchase or cash advance at international merchants in a currency other than AUD.
    Currency conversion assessment fee:
    0.2% of the transaction amount when you withdraw cash from an ATM outside Australia or when you make a purchase or cash advance at international merchants in a currency other than AUD.

  2. If you apply through your flybys account you have the option of $100 off OR 20,000 bonus points! I opted for the points, although I thought I applied for the ‘no annual fee’ card (only 1 point per dollar) but I was sent the Platinum Rewards card? Wondering if the $89 fee is worth double points or if I call and change the card before I activate?

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