Maximising your points means matching your existing spending to a card structure that earns the most points per dollar. You then need to account for caps and payment quirks that can reduce headline rates.
Two households spending the same $5,000 a month can earn thousands more points simply because they use different card structures. Category cards earn different rates depending on the merchant type. Flat-rate cards earn one rate until you reach a cap.
Here is how category earning works and how to map your own spending mix. We’ll also cover caps, intermediary traps, and the differences between category and flat structures.
How spend categories decide what a dollar earns
A category card pays by merchant type, using the category each merchant is classified under rather than what you bought. The Westpac Altitude Qantas Black is a documented example of this structure. As of October 2026, it earns 1.5 Qantas Points per $1 on international spend. Supermarkets, department stores, petrol and utilities earn 0.8 per $1. Other eligible domestic spend earn 0.4 per $1. The same dollar earns twice the amount at a supermarket than at an insurance company outside the bonus categories.
Flat structures take the opposite approach, paying one rate on all eligible spending. The NAB Qantas Rewards Signature earns 0.75 Qantas Points per $1 on the first $3,000 of eligible spend. The Qantas American Express Ultimate earns 1.25 points per $1 on eligible spending up to an annual cap. These rates apply as of October 2026. Government spending is a common carve-out across issuers and may earn fewer points than the headline rate.
The payment system determines the classification, not you. That can create traps outlined below. The current earn structures for the cards named here are detailed in our Westpac Altitude Qantas Black guide and NAB Qantas Rewards Signature guide.
How to map your spending mix to a card structure
Mapping starts with 3 months of statements, sorted into the categories used by the candidate cards rather than your own categories. A household that spends heavily on supermarkets, petrol and dining may suit a category structure that rewards those merchants with a premium.
A spread of spending across insurance, subscriptions, medical and trades typically falls into the ‘other ‘ category. That spending mix may suit a flat-rate card. That is because the category card pays its lowest earn rate on this type of spending. International spend deserves its own line because it earns the top rate on the Westpac structure. It can also attract foreign transaction fees, which can reduce the value of those points.
The mapping must also account for the earn-rate drop. From 1 October 2026, every Westpac rate drops to 0.25 points per $1 once eligible spend passes $10,000 in a statement cycle. On the NAB structure, the 0.75 rate applies to the first $3,000 of eligible spend per statement period. It then drops to 0.25 points per $1 from $3,001 to $15,000. No points are earned beyond $20,000 in a statement period. A high-spending month can earn points at rates well below the advertised headline rates on both cards.
The caps and intermediary traps that flatten headline rates
The traps follow the same pattern. The transaction amount is the same, but the classification changes. Payment intermediaries are a clear example. A supermarket purchase made through PayPal can be classified as a payment to PayPal rather than the supermarket. Westpac’s terms treat PayPal and Afterpay transactions as other spend at 0.4 points per $1 rather than the 0.8 category rate.
Caps are the second factor, reducing the earn rate to far below the advertised number once you pass the thresholds. The third factor is the carve-outs, with government payments being a recurring example. Government payments earn one point per $1 on American Express cards compared to 2.25 elsewhere on the same Platinum Card. These rates apply as of September 2026. Government payments are excluded or earn fewer points across most issuers.
- Warning: comparing structures is a multi-step calculation. The marginal rate is the rate earned on the next dollar of spending, which is the number that matters
- Split your monthly spend into the candidate card’s actual categories, including a line for anything paid through an intermediary
- Multiply each line by that card’s category rate, then stop to apply the cap. Spending past a threshold earns the stepped-down rate, not the headline
- Repeat the calculation for the flat rate candidate. Compare monthly totals rather than headline rates because the result depends on your spending mix
- Re-run the numbers when a card reprices. Issuers such as Westpac and NAB can change their earn rates. The Reserve Bank’s card-payment reforms take effect from 1 October 2026 and may prompt further changes
How to choose between category and flat rate structures
The choice depends on where you concentrate your spending. A household spending heavily in a card’s bonus categories may get more from the category structure. A household with diffuse spending, high monthly totals or heavy intermediary use may earn more from a flat-rate card. The comparison depends on your spending rather than a fixed ranking. Review your spending mix annually and whenever your circumstances change.
The card-level details are in the guides linked above. For broader comparisons, see our round-ups of the top Qantas Points-earning credit cards and top Velocity Points-earning credit cards. The current Westpac structure is published on the issuer’s product page. A new card’s earn rate also needs to be considered alongside its introductory requirements. See our credit card minimum spend guide for more.
Frequently asked questions
Generally, no, on category structures, because the transaction is classified as a payment to the intermediary rather than the underlying merchant. Westpac’s Altitude Qantas Black treats PayPal and Afterpay spend as other at 0.4 points per $1, so paying the supermarket directly preserves the 0.8 category rate.
No. Each issuer defines its own category list, and a merchant type that earns a premium on one card earns the base rate on another, so the candidate card’s published category definitions are the reference, not a general rule about merchant types.
Issuers price categories partly on the economics of accepting the payment, and government transactions are a common down rated or excluded category across the market. On American Express’s Platinum Card the rate is 1 point per $1 against 2.25 on other eligible spending, and other issuers apply their own versions.
At least annually, and whenever the issuer writes to you, because rates, categories and caps are variable terms rather than fixtures. Structural change is also in the air, with earn rate adjustments flagged across the market from 1 October 2026 in the wake of the Reserve Bank’s surcharging reforms.
Fees, rates and figures quoted are correct at the time of publication and should be verified directly with each provider before acting on them.
This article is general in nature and does not constitute personal financial advice. Consider your own financial situation before applying for any credit product. Point Hacks may receive a commission from card issuers for applications made through this site.
