The American Express Velocity Business card has no pre-set spending limit and offers business owners and sole traders up to 2 Velocity points per dollar on purchases within Australia.
- 2 Velocity points per $ spent with Virgin Australia
- 1 Velocity point per $ spent on most purchases
- No pre-set spending limit
- Two complimentary single entry passes to the Virgin Australia Lounge
- Complimentary Travel Insurance
- $249 annual fee
Point Hacks earn a maximum of $250 per applicant for this card. More about this →
The American Express Velocity Business card can benefit small businesses who travel frequently with Virgin Australia or any of its partner airlines.
It offers 1 Velocity point per $ spent earn on most purchases, automatic transfer of points earned each month to Velocity Frequent Flyer, comprehensive travel insurance, along with travel inconvenience and travel accident cover.
The card also attempts to simplify the monitoring of business expenditure with integrations into various accounting packages and Excel.
The American Express Velocity Business card has the following variable earn rate structure:
- 2 Velocity Points per $1 spent for purchases with Virgin Australia
- 1 Velocity Point per $1 spent on Card purchases, except those listed in 0.5 points category
- 0.5 Velocity Point per $1 spent on utilities, insurance providers (with the exception of American Express) and government bodies
Virgin Australia purchases will only attract the 2 Velocity points per $1 for purchases made in Australia, that is, for purchases which are transacted in Australian Dollars.
For example, a purchase of a return Sydney to Los Angeles airfare through the Australian version of the Virgin Australia website would attract the 2 Velocity points, however, a return Los Angeles to Sydney flight purchased through the US version of the site (and billed in USD) would not.
Complimentary Domestic and Overseas Travel Insurance comes as a feature of the card, providing both the cardholder and any supplementary cardholders with cover whenever flights are booked with the card.
The card also comes with Travel Inconvenience Cover, providing coverage for flight delays, missed connections or delayed luggage, and Travel Accident Cover, where up to $20,000 of outstanding charges will be waived when the cardholder finds themselves in a serious accident while travelling for business.
Full terms and conditions for this insurance can be found here Insurance Terms and Conditions – American Express Velocity Business Card.
This guide references some of the benefits of insurance policies provided with this card.
You should read the PDS and obtain independent professional advice before obtaining this product.
Complimentary Virgin Australia Lounge Entry
Two complimentary single passes to the Virgin Australia lounge are on offer every year, allowing cardholders to experience the amenities available in Virgin Australia branded lounges within Australia.
For a more about the benefits of lounge access, take a look at our guide to Virgin Australia lounges →.
Keeping track of Business Spending
To assist with keeping track of the business’s financial performance and spending, the American Express Velocity Business Card allows for statements and transaction details to be downloaded and balances to be viewed using Quicken, MYOB or Microsoft Excel.
To be eligible for the American Express Velocity Business Card, you must meet the following criteria:
- 18 years or over
- Australian citizen or permanent resident
- Personal gross (pre-tax) annual income of $24,000 or more
- Have no history of bad debt or payment default
The American Express Velocity Business Card comes with an annual fee of $249, which may be tax deductible if the card is used solely for business purposes.
This is a Charge Card
An important point to note is that this card is a charge card, meaning that the balance of the card must be paid in full every month. However, there is no pre-spending limit as long as the balance is paid in full every month, providing more spending and cash flow flexibility for the company.
No pre-spending limit however does not mean unlimited spending, with purchases being approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources known to American Express.
Eligibility criteria for bonus points for existing American Express Card Members
American Express are quite specific about whether existing Card Members will be eligible for bonus points if they apply for a card, are approved, and meet the minimum spend criteria.
If you hold a bank-issued American Express – such as from Westpac, Commonwealth Bank or NAB – that won’t affect whether you’re eligible for bonus points with an American Express branded card offer. There’s more in our guide to this here.
However American Express don’t allow existing cardholders, even for different types of American Express cards (e.g. Charge, Credit or Business) to be eligible for bonus points offers for cards in a different family.
Summing Up – Velocity Business American Express Card
With a moderate annual fee, the card provides many small business and travel friendly features, such as complimentary travel, inconvenience and accident insurance and the ability to easily monitor business transactions.
Small businesses can earn meaningful travel rewards through a generous earn rate on Virgin Australia purchases, and if travel rewards aren’t the preferred redemption option, the ability to redeem for a large variety of redemption options.
Ultimately the Velocity Business card could be viewed alongside the consumer-centric offering from American Express, the Velocity Platinum. This has a higher annual fee but offers a number of additional categories of spend with bonus points, and a free domestic Virgin Australia flight each year, which for some people may work better to earn you more Velocity points and offer greater value.
You’ll have to weigh up whether the business specific features of the Velocity Business card are more important than the benefits of the Velocity Platinum.
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