ANZ offers two ‘flavours’ of credit cards, if you will. One option is to earn rewards directly with Qantas, via the bank’s Qantas co-brand credit cards. But the other path is ANZ Rewards – a credit card points program with ties to Virgin Australia, Cathay Pacific, Singapore Airlines and Air New Zealand.
The concept is simple. By making eligible transactions on an ANZ Rewards credit card, the bank provides Reward Points. These points stay with the bank until you’re ready to use them, which makes them very flexible.
For instance, you could earn Reward Points now on amounts you’re already spending. But you could then decide which airline to send those points to later. Perhaps, based on which frequent flyer program has the best reward seat available for your next trip. That way, you’re not stuck with your eggs all in the one basket.
Here’s a beginner’s look at how the ANZ Rewards program works, and how to turn simple everyday transactions into a growing pool of points.
Earning points with ANZ Rewards
These days, ANZ Rewards supports two main credit cards. There’s the ANZ Rewards Platinum card and the ANZ Rewards Black card. Both are Visa products, but they earn points at differing rates.
The ANZ Rewards Platinum card can now be considered the bank’s entry-level points-earning products. Cardholders can accrue 1.5 ANZ Reward Points per $1 spent, up to and including $2,000 per month. Above that, the bank provides 0.5 ANZ Reward Points per $1 spent on all further transactions, until the next statement period begins.
Alternatively, the ANZ Rewards Black card offers more points for every dollar spent. Pocket 2 ANZ Reward Points per $1 spent up to and including $5,000 per month. Then, 1 ANZ Reward Point per $1 spent thereafter. Notice that the base earning rates are higher – but so too is the monthly spending threshold at which the rates change. For those who spend >$5,000 per month or who want to maximise the points earned on every dollar spent, it’s an extra incentive to consider the Rewards Black card.
Reward Points aren’t just reserved for large spends or in-person payments. You could also earn points when shopping online, paying bills – even tapping an ANZ Rewards credit card when buying a simple coffee. It all adds up.
ANZ also supports mobile wallets such as Apple Pay, Google Pay and Samsung Pay. Some people find these payment methods to be more convenient. And if that’s the case, know that you’ll earn Reward Points at the same rate as via the physical plastic card.
Adding additional cards for a partner or other trusted family member can also provide an avenue for earning points. There’s a fee of $65 p.a. per additional card, with all points earned being credited to the primary cardholder.
Unlocking frequent flyer points through ANZ Rewards
Okay, you’ve done the hard part and earned yourself a nice pile of ANZ Reward Points (nice work!). But this next part is more exciting – how turning those credit card points into airline frequent flyer points.
ANZ Rewards supports transfers to the loyalty programs of Virgin Australia (Velocity), Cathay Pacific (simply named ‘Cathay’), Singapore Airlines (KrisFlyer) and Air New Zealand (Airpoints). But not all points are created equal. The applicable transfer rates from ANZ Rewards are as below.
- Velocity Frequent Flyer – 2:1
- Cathay – 3:1
- Singapore Airlines KrisFlyer – 3:1
- Air New Zealand Airpoints – 200:1
Essentially, if you’ve amassed 100,000 ANZ Reward points, those are worth 50,000 Velocity Points. Or 33,333 miles with Cathay or KrisFlyer. As for Air New Zealand, it’s worth $500 NZD in Airpoints Dollars.
What does that mean?
Flexibility is an upside to points programs like ANZ Rewards. But like all ‘indirect earn’ propositions, you need to crunch the numbers to see how many airline frequent flyer points you’re really earning per dollar spent. Fortunately, you can keep the calculator away – we’ve got your back.
Let’s start with the ANZ Rewards Platinum card, running the numbers on the card’s earning rate and the program’s conversion rates. Spends of up to $2,000 per month earn the equivalent of 0.75 Velocity Points per $1 spent, if those Reward Points were converted to Velocity. Or, 0.5 Cathay Asia Miles, 0.5 KrisFlyer miles or $0.0075 in Airpoints value per $1 spent.
Surpassing spends of $2,000 per month, you’re looking at the equivalent of 0.25 Velocity Points per $1 spent. With Cathay or KrisFlyer, it’s 0.166 miles per $1 – or $0.0025 in Airpoints Value.
Shifting to the higher-tier ANZ Rewards Black card effectively provides 1 Velocity Point per $1 spent up to $5,000 per month. Alternatively, 0.66 Asia Miles or KrisFlyer miles per $1 up to the same threshold – or $0.01 in Airpoints Value. Beyond $5,000, expect to earn the equivalent of 0.5 Velocity Points, 0.33 Asia Miles or KrisFlyer miles, or $0.005 in Airpoints value.
Knowing these rates makes it easier to compare alternative credit cards. Those with a keen interest in frequent flyer points can use this knowledge to consider how many ‘real’ frequent flyer points are being provided per dollar spent. And, from that, review how many frequent flyer points they could be earning by making the same volume of eligible spends on different credit cards.
Also read: The Ultimate Guide to ANZ Rewards
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