The American Express Velocity Business Card is offering 100,000 bonus Velocity Points for New American Express Card Members who apply by 6 February 2023 and spend $3,000 or more on eligible purchases within the first 2 months of the approval date.
The card can benefit small businesses who travel frequently with Virgin Australia or any of its partner airlines. It offers 1 Velocity Point per $ spent on most purchases, automatic transfer of Points earned each month to Velocity Frequent Flyer, plus Travel Insurance along with Travel Inconvenience Cover.
The card also attempts to simplify the monitoring of business expenditures with integrations into various accounting packages.
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 that 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.
|Card||American Express Business Velocity Card|
|Loyalty program||Velocity Frequent Flyer|
|Points earned from spend||1 Velocity Point earned per $1 on all eligible spend except for government bodies
2 Velocity Points per $1 spent on selected Virgin Australia purchases
0.5 Velocity Points per $1 on Government spend
|Earns Points at ATO||Yes (reduced earn rate of 0.5 Point/$)
|Travel benefits||Each year: 2x Virgin Australia lounge passes|
|Included insurances||Medical Emergency Expenses Cover
Business Trip Completion Cover
Trip Cancellation and Amendment Cover
Personal Liability Cover
|Overseas transaction fee||3% of the converted amount|
|Mobile wallet||Apple Pay, Google Pay and Samsung Pay|
|Minimum income requirement||Annual business revenue of $75,000 or more|
|Annual fee||$249 p.a.|
Complimentary Domestic and Overseas Travel Insurance comes as a feature of the card, providing both the cardholder and any additional card members with cover when you use the Card to pay for the return trip.
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
- Have an annual business revenue of $75,000 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.
Unparalleled mobile wallet integration
American Express cards support Apple Pay, Google Pay and Samsung Pay, meaning you can use this card on your smartphone for easier payments.
With this feature set up, it means you could still use your NFC-enabled phone to make purchases with your American Express account, even if your physical card is lost or stolen and pending replacement.
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 Insurance, Travel Inconvenience Cover and Transport Accident Cover 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.