ANZ have made one of the first major moves of credit card changes this year, severing ties with American Express, with their range of rewards cards now including a Visa only.
Existing cardholders will be able to use their American Express cards up to August 5th, with the corresponding Visa earn rate changes effective immediately. New applicants won’t receive a companion American Express card as of today.
ANZ’s product line up hasn’t otherwise changed much – there are no new or removed cards – but the existing ANZ Rewards cards now also have points caps applied, although these are waived on these cards until August 5th.
We’ll publish updated guides to each of the following cards soon to reflect the new product offering.
In summary, ANZ have:
- Removed the companion American Express from all accounts
- Increased earn rates on most of the Visas, up to a points cap
- Added points caps on the ANZ Rewards cards, after which earn rates are reduced
Here’s a summary of the revised earn rates:
| Card | Old Earn Rates | Change in Earn Rate before Points Cap | New Earn Rates / Points Caps | |
|---|---|---|---|---|
| American Express | Visa | Visa only | Visa only | |
| ANZ Frequent Flyer Black | 1.5 Qantas Points per $ | 0.75 Qantas Point per $ | +0.25 Qantas Point per $ | 1 Qantas Point per $ spent up to $7,500 per statement period 0.5 Qantas Point per $ spent above $7,500 per statement period |
| ANZ Frequent Flyer Platinum | 1.5 Qantas Points per $ | 0.5 Qantas Point per $ | +0.25 Qantas Point per $ | 0.75 Qantas Point per $ spent up to $3,000 per statement period 0.5 Qantas Point per $ spent above $3,000 per statement period |
| ANZ Frequent Flyer | 1 Qantas Point per $ | 0.5 Qantas Point per $ | None | 0.5 Qantas Point per $ spent up to $500 per statement period 0.25 Qantas Point per $ spent above $500 per statement period |
| ANZ Rewards Black | 3 ANZ Rewards points per $ | 1.25 ANZ Rewards points per $ | +0.75 ANZ Rewards points per $ | 2 ANZ Rewards point per $ spent up to $5,000 per statement period 1 ANZ Rewards point per $ spent above $5,000 per statement period |
| ANZ Rewards Platinum | 2 ANZ Rewards points per $ | 1 Reward point per $ | +0.5 ANZ Rewards points per $ | 1.5 ANZ Rewards point per $ spent up to $2,000 per statement period 0.5 ANZ Rewards point per $ spent above $2,000 per statement period |
| ANZ Rewards | 1.5 ANZ Rewards points per $ | 0.75 Rewards point per $ | +0.25 ANZ Rewards points per $ | 1 ANZ Rewards point per $ spent up to $1,000 per statement period 0.5 Rewards point per $ spent above $1,000 per statement period |
| ANZ Rewards Travel Adventures Card | 2 ANZ Rewards points per $ | 1 Reward point per $ | +0.5 ANZ Rewards points per $ | 1.5 ANZ Rewards point per $ up to $2,000 per statement period 0.5 ANZ Rewards point per $ above $2,000 per statement period |
For the ANZ Rewards range, this means the cards now earn points into Velocity, KrisFlyer and Asia Miles as follows:
| Frequent Flyer Program | Transfer Rate | ANZ Rewards Black Effective Earn Rate | ANZ Rewards Platinum Effective Earn Rate |
|---|---|---|---|
| Velocity Frequent Flyer | 2 ANZ Rewards points to 1 Velocity Point | 1 Velocity Point per $1 | 0.75 Velocity Points per $1 |
| Singapore Airlines KrisFlyer | 3 ANZ Rewards points to 1 Krisflyer mile | 0.66 KrisFlyer miles per $1 | 0.5 KrisFlyer miles per $1 |
| Cathay Asia Miles | 3 ANZ Rewards points to 1 Asia Mile | 0.66 Asia Miles per $1 | 0.5 Asia Miles per $1 |
| Air New Zealand Airports | 200 ANZ Rewards points to 1 Airpoints Dollar | 0.010 Airpoints per $1 | 0.0075 Airpoints per $1 |
Summing up – is this a good or bad move by ANZ?
This is first major adjustment by one of the big banks as a result of the changes to interchange fees put in place by the RBA, and which come into effect on June 1st – just like last year, these will have a fairly sweeping effect on the points and credit card market in Australia, and it won’t be until the dust settles fully will we know the full impact on rewards credit card users.
We tracked the changes that come through last year and will do the same again as more banks revise their offerings.
ANZ’s changes have been announced with several months notice, which allows customers to consider their options, and they aren’t overwhelmingly negative – those who spend up to and around the points cap will be better off, with the higher spenders for each card type.
It will likely push a few ‘Classic’ and Platinum cardholders up the ANZ card range if they want to earn more points without hitting their points cap – if they want to stick with ANZ. But many cardholders reliant on American Express card spend to boost their points earn may look elsewhere.
ANZ Rewards also haven’t adjusted transfer rates to their frequent flyer partners, which is to be commended – doing that while keeping earn rates the same has a similar effect as changing earn rates on cards, but is harder for consumers to understand, so it’s great that ANZ have simply adjusted their earn rates and added points caps to not make the program more complex.
The removal of an American Express option is obviously a blow for those who could put a significant amount of spend on their ANZ-issued American Express cards, with the revised Visa earn rates understandably still below the existing points earn rates on the companion American Express cards.
It also makes ANZ cardholders ineligible to take part in offers through Amex Network, as well as removal of the Sydney American Express lounge access for ANZ Black cardholders.
An American Express spokesperson gave us this comment: “While we have had a very successful partnership with ANZ, we understand the decision in the context, and as a consequence of the current regulatory environment. People can continue to enjoy American Express service and rewards programs through taking up a credit card with us directly or with one of our other bank partners.”
Wow! This thread has a lot of info! Thanks!
As retirees we can’t get banks to accept our substantial assets to qualify for any new credit cards!
But good on Amex because I found a way around the too-low income problem, and my Explorer card will arrive soon. Yippee!
We still need a card for supermarket, etc, type shopping, where Amex isn’t accepted.
As we still have credit cards with ANZ and Commonwealth, we CAN change to points cards with those banks.
Which should we choose, considering we won’t need an Amex tie in!
Remember! All this is just to get some points-love back from our massive CGT tax bill!
Hi Savannah, we can’t legally recommend specific products for your individual situation but you may find this page and this page helpful in making your decision. Thank you for your support!
Hi Keith,
I was doing some calculations and came to the following conclusion: –
2 ANZ rewards point = 1 velocity point = 0.74 krisflyer miles using the 1.35 velocity points to 1 mile conversion
Would this be a more effective (though administratively more difficult) exchange rate to accrue krisflyer miles or am I missing a loophole here?
Im a bit upset, had my annual fee charged in Feb, then in March all conditions changed.
Phoned ANZ, had no idea.
Expressed my concerns.
ANZ advised me to look else where if I wasnt happy – so I am.
Hi Keith,
We are travelling to the States and Canada in October, and have already secured our rental vehicles with our Amex Connect discount benefit. Now that our Amex with ANZ will no longer exist, what options do we have for all our bookings secured with Amex and requiring the same card to be shown at time of pick up? (This applies to a few hotels too).
Is it worth looking to move to NAB or do you think other banks will follow suit? I am tempted to cancel my CC and reapply for a new standalone AMEX closer to travel. Your thoughts would be appreciated!
Tough one. Personally, I would get in touch with / update the reservations online for each of the bookings using the Amex at the least, then at least there shouldn’t be any issues.
To score the discounts you will need an Amex as you know, but none of Westpac, NAB or Commonwealth have moved yet. There is still a fair bit of time though.
I am not sure how big the discount is but Amex Connect isn’t offered with Amex-issued cards, you’ll need a bank-issued Amex to make use of it, so bear that in mind too.
Hi I need some advice, I was so excited to finally use my anz black rewards points to fly with Thai Airways to Europe buy business class. Just to find out that they are not in their redeem list?!? So is there any way to transfer over eg. Velocity to spg?? Or any other way??
After spending 3 days and 2 nights researching on the internet success less,
I really need your help!!!
Thanks Manu
I specifically got the ANZ Rewards Black card to get 3 pts per $1 on Amex, which I use a lot. It will be sad to see that gone as this past year alone, the rewards pts paid for a new Dyson V8 handheld vacuum cleaner and a top of the range blender which made my wife and kids very happy. Its true more places accept VISA, but I still don’t think it makes up for the 3 pts per $ of Amex. And I’ve been seeing a lot more small businesses using Square as a payment system which accepts Amex and any other card without any surcharge and charges a flat rate for the business owner so its a win-win.
Hi Keith,
If my husband is my additional card holder but now he wants to apply to ANZ FF Black card himself, will he still get the 75,000 bonus point ?
Supplementary cardholder ownership doesn’t ever usually affect offer eligibility, so that shouldn’t exclude him from the offer.
Do the BPay points work on ATO payments?
ANZ Black still pays points on Bpay transactions.
Can you confirm whether this is will continue post August?
Also it would be great if Points Hacks can publish an article on which cards pay points on Bpay and if they are capped or not as well as earn rates?
Brad
This isn’t a published benefit of the ANZ cards, so we don’t know if it’s changing. And to our knowledge, it’s also the only card that pay points on BPay.
Rules for current card holders and new ones are pretty clear on this link. If you have a card before 1 March 2017, then earn rates are .75 point per $ for Visa and 1.5 points for AMEX.
https://www.anz.com.au/promo/personal/credit-cards/Changes-to-rewards-and-frequent-flyer-cards/
I’ve racked up about 300k points in the last 6 months with the bonus points on sign up and the card may pay for some business expenses… what are some good alternatives post august as the $5k limit for double earn is not going to be great for me?
And then what do I do with all the points!?
New earn rates even
Thes newesrn ratesare for people who apply after the announcement. Legally the bank have to send us notification in the mail about the changes if we hold a card. ANZ moved from 90 day notifications to 30 day notifications. If you also recently applied for the card the law states that you have to have access to your current product for a reasonable time which is generally deemed at 6 months. Remember these changes are driven by the interchange caps and other banks will follow.
So i paid the Annual Fee 2 months ago. $400 to ANZ. And now they are cancelling the only reason i have the card. What grounds do i have to complain? That is very unfair. I will wait a few weeks till the call centre have any idea what is going on.. but i will be leaving ANZ that is for sure.
You should get a pro-rata refund at the very least, if not a complete refund when you cancel.
very unhappy as I just got my ANZ card a month ago specifically for AMEX.
Not happy with the annual fee being charged when the service on offer has been significantly altered.
Wondering if I can demand ANZ either wave the annual fee or cancel the account with a refunded fee due to not getting what I paid for.
Do I see a little opportunity there ?
1 point per dollar spent on VISA effect now (“with the corresponding Visa earn rate changes effective immediately. “) but not capped until 5th August? If my reading is correct then we definitely have an window to maximise points.
That said, I cannot find any references to the new Visa rates being effective immediately. Can anyone confirm ?
MB, I don’t see engengy company accepting PayPal, or paying rates. I don’t see the point dropping $1200 for a card I can use at supermarket for. And we don’t know what Amex is going to do with cards yet – let’s not forget Amex devalued their Qantas portfolio. I won’t be surprised they do the same thing with velocity and their own rewards points.
MB, who accepts AMEX these days without charging you $20 per transaction? What’s the point?
I have an Amex attached to my PayPal account, you would be surprised how many merchants take it as a method of payment, Telstra is a prime example, charge a fee for credit card payment but not for PayPal.
I’m a regular shopper at Costco who don’t accept AMEX, will be sticking with my trusty Visa Card.. Bali! Here I come!
Nice tip.
Loads of places accept AMEX without a surcharge. Most that charge one, charge between 1-3% surcharge. If you’re on top of the maths, it’s easy to decide when to use AMEX (even with a surcharge), or when to revert to V/MC.
E.g. Most serious AMEX users would have an AMEX issued card with bonus spend (e.g. x3 points @ supermarket, or x3 points at restaurants). Top earn rate on V/MC would be 1 point per dollar or ~2 cents (2%). Shouting a $50 round at the pub would get me $1 worth of points on V/MC, or I could pay another $1.50 (@ 3% surcharge and x3 points) and earn $3. I still come out ahead using AMEX, even with a 3% surcharge.
I recently received my ANZ Black FF cards, and I haven’t yet completed my qualifying spend for the 75,000 bonus points. Will ANZ honour that bonus point scheme for new cardholders?
Yes, they should.
No mention of any changes to insurances provided. I’ve booked a holiday booked on the Amex specifically for the travel insurance!
Don’t get too excited about the insurance attached to your Visa Black or Amex link. It covers less, has an excess on most claims which is more than what ‘extra travel insurance’ would be. Excess is less or non existent if you purchase other travel insurance. You might find things to be different but we put in a claim after thinking that Travel insurance on our Visa/Amex was the same as if we purchase travel insurance through ANZ… let me assure you… it is not.
Hi Keith,
In your opinion, what do you think AMEX’s reaction will be to the likely trend of banks removing Amex from their own offerings? Do you think they’re going to go on an extensive campaign to try and capture those people who may have previously held Bank Amex’s but never held a standalone AMEX? Could we expect AMEX to come out with some bigger sign on bonuses or new products?
Cheers
Ryan
Ryan, amex have already changed their earn rates on their qantas cards. Amex knows that customers will naturally shift because ANZ no longer offers Amex, so I don’t think you’ll see bigger bonuses than the recent 100,000 points offer
Spoke to ANZ today, they had absolutely no information, no idea what was happening… further delving provided information that everything associated with Amex (lounge passes etc) will be forfeited by August. Thankfully our annual fee anniversary is end of April….. time to move.
Did they say anything about the annual fee? If it stays the same, then I have no idea how they can still justify charging 395 for the black card with less points earn potential, no lounge passes in sydney and a substandard international lounge program (veloce). I guess that makes the decision to cancel a lot easier, since my anniversary is due on April. Thanks for the info.
Makes the decision on getting a Platinum Charge from Amex a lot easier. Cannot see the value in keeping my Black ANZ card, maybe downgrade it to the Travel Adventures card.
Time to move to Amex themselves…..
Does this mean that additional benefits like lounge passes etc will need to be “accessed” by 5 August. I am assuming it does, or are those benefits still linked to the Visa as well. We got our amex and visa issues together.