Jetstar has announced they are set to make some changes to their Jetstar MasterCard range, with points caps being added and the exclusion of payments to the ATO and for BPAY for earning points from 24th October 2016. These details have been added to their FAQ page.
The points earn rate remains at 1 Qantas point per dollar earn rate but this will be capped at $2,500 per statement period, with 0.5 Qantas points earned per $ thereafter. The annual fee for the Platinum MasterCard also increases by $20 to $169.
The card is issued by Macquarie Bank, who recently made cuts to their own-branded cards – and this change can be added to our growing list of devaluation in points earn rates made by banks so far this year.
Digging into the details of the Jetstar Credit Cards
Jetstar have two branded Mastercards in their credit card stable, both issued by Macquarie Bank – the Jetstar MasterCard and Jetstar Platinum MasterCard.
|Card||Jetstar Platinum MasterCard||Jetstar MasterCard|
|Loyalty program||Qantas Frequent Flyer or Jetstar Dollars||As Platinum, but with $30 annual opt-in fee for Qantas Points|
|Points earned from spend||1 Qantas Point per $ or 1 Jetstar Dollars per $50|
(From 24 October 2016 onwards, a $2,500 cap per statement period will be in place with earn rates reduced to 0.5 Qantas points per $ or 1 Jetstar dollar per $100 thereafter)
|0.5 Qantas Points per $ or 1 Jetstar Dollar per $100|
|Points cap||100,000 points per year or $2,000 in Jetstar credit||25,000 points per year or $500 in Jetstar credit|
|Earns points at ATO||No||No|
|Travel benefits||Interest free Jetstar bookings, no booking and service fees on Jetstar bookings, 10% off onboard purchases||As Platinum|
|Included insurances||Overseas travel insurance, purchase, warranty and other coverage (PDS)||None|
|Minimum income requirement||$30,000||$30,000|
|Overseas transaction fee||3% of the converted amount||3% of the converted amount|
|Annual fee||$169 p.a.||$69 p.a.|
Both cards are linked to Qantas Frequent Flyer for Qantas Points earn, (as you’d expect given Qantas’ ownership of Jetstar) or you can link them to Jetstar Dollars – where you can earn credit to redeem for Jetstar flights.
The key differences between the two cards are the annual fee – $149 for the Platinum, and $59 for the regular card (which will increase to $169 and $69 respectively from 24th October 2016 onwards)- and points earn rates, along with some included additional insurance on the Jetstar Platinum MasterCard. Read the full PDS here.
This guide references some of the benefits of insurance policies provided with this credit card.
You should read the PDS and obtain independent professional advice before obtaining this product.
Earning Qantas Points or Jetstar Dollars with your spend
With a choice between Qantas Points or Jetstar Dollars, most more advanced points collectors will probably opt for Qantas Points for maximum value.
That said, if you consistently fly on paid fares with Jetstar, the Jetstar Dollar credit earned is worth considering with the Platinum MasterCard.
The Platinum card currently earns 1 Qantas Point per dollar spent on all purchases (will be capped at $2,500 per statement period from Oct. 24 onwards, and earns 0.5 Qantas point per $ thereafter), while the standard card earns 0.5 Qantas Points per dollar on all spend – but you’ll be paying an additional opt in fee of $30 annually to earn Qantas Points on the standard card.
There’s currently an annual points cap on both cards – with the standard card it’s 25,000 Qantas Points, and with the Platinum, 100,000 Qantas Points – but this is changing to the monthly cap from October 24th, 2016.
If you choose to earn Jetstar Dollars then you’ll be earning a simple $1 credit per $100 spent with the standard card, or $2 credit per $100 spent with the Platinum MasterCard (will also be capped at $2,500 per statement period, with $1 credit earned per $100 spent thereafter starting 24th October).
The effective 2% return on spend in Jetstar credit on the Platinum MasterCard is actually quite good compared to many points earn options.
However with Jetstar Dollars you are locked into Jetstar flights, and can’t redeem them anywhere else, so this will need to work for you.
Jetstar benefits with both Jetstar MasterCards
The first new benefit to the Jetstar Mastercards is the interest free offer on any flight booking at Jetstar.com.
There’s an introductory offer of 12 months interest free on any Jetstar flight booking over $600, or 6 months interest free for $300 to $599 value bookings.
Another benefit is the removal of booking and service fees on Jetstar bookings when paid for using a Jetstar MasterCard. The current fees are $8.50 per person per flight for domestic flights, and $12.50 per person per flight for international flights.
Again, the savings could pile up pretty quickly if you make regular bookings on Jetstar.com.
The other new benefit of the card is 10% off inflight purchases when using the card, which is a less appealing benefit but still handy.
Summing up – who are the Jetstar MasterCards for?
Looking at both cards together, I’d suggest that the Jetstar Platinum MasterCard offers better bang for buck – with increased points earn rate and the option to move points to Qantas Frequent Flyer with no additional fee. Of course, this is subject to your personal circumstances, which I have not taken into account.
The regular Jetstar MasterCard is probably best used by the frequent Jetstar booker – with the ability to save on booking fees and the interest free period on flights probably covering the cost of the lower annual fee quite quickly.
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