The Coles Rewards Mastercard is a no-frills card designed for the everyday shopper—there are no travel perks such as lounge access — as it’s a supermarket-branded card after all.
However, when it comes to standalone Visa/Mastercard credit cards that earn points into flexible points programs with decent points earn rates, the options are very limited, and the Coles Rewards Mastercard deserves to be considered for its relatively low annual fee, a solid points earn rate from spend, and no international transaction fee on purchases when shopping online or overseas.
This makes the card appealing to points collectors looking for a solid Visa/Mastercard with a number of good value features and flexibility in redeeming points.
In particular, flybuys’ tie-up with Etihad Guest and Velocity makes this card appealing for those interested in frequent flyer points, especially with the reasonable annual fee of $99. The card makes an appearance on both our highest earning Velocity credit cards and highest earning Etihad Guest miles credit cards guides.
Note: As of 14 December 2017, flybuys suspended its partnership with Etihad Guest—we will update this guide as soon as we have further updates.
flybuys can be transferred to Velocity for cheap Virgin Australia Business Class redemptions
|Card||Coles Rewards Mastercard|
|Points earned from spend||2 flybuys points per $1 spent on eligible purchases|
|Overseas transaction fee||None for purchases|
|Minimum Income||$25,000 p.a.|
|Annual fee||$99 p.a.|
Effective Frequent Flyer Program Point Earn Rates
|Partner Frequent Flyer Program||Equivalent partner points earned|
|Velocity Points||0.87 points / $ spent|
|Etihad Guest Miles||0.8 Miles / $ spent|
Earning flybuys points with the Coles Rewards Mastercard
You’ll collect 2 flybuys points for every $1 on eligible spend. This is equivalent to a 1 cent discount on groceries or when redeemed for gift cards.
If you choose instead to transfer flybuys points to Velocity or Etihad, you’ll pick up 870 Velocity Points for every 2,000 flybuys points, or 4,000 Etihad Guest Miles for every 10,000 flybuys points transferred.
Reduced to a point per $1 earn rate, this equates to 0.87 Velocity Points or 0.8 Etihad Guest miles per dollar, and you can transfer flybuys points to these programs at any time you choose, just keep in mind that points increments and limits apply.
In my experience points from purchases show almost instantly in my flybuys account as a daily sweep the day after purchases clear, rather than a monthly sweep which makes it easier to access the points for a redemption more quickly without having to wait.
No international transaction fee on purchases when shopping online or overseas
With the Coles Rewards Mastercard you’ll save on foreign exchange fee (whilst still earning points), where this fee can be up to 3.5% on overseas purchases on cards which apply them.
It’s worth understanding that the no transaction fee on purchases are on offer for purchases made that aren’t in Australian dollars – whether that’s online or overseas. Additional fees apply when you withdraw funds outside of Australia or in a foreign currency, for example at an ATM or as a cash advance.
Free delivery at Coles online when paying with your Coles credit card
If you shop online at Coles and need to be able to book a more specific time for delivery than their free flexible delivery time option (already available to everyone), then the free delivery benefit as a cardholder is going to be useful – it’s available once you spend $100 or more.
It’s going to offer most value to the more frequent Coles online shoppers, naturally, but even those who shop online with Coles less frequently – but meet the $100 spend criteria – could find it useful to be able to select a delivery slot at no additional cost.
Combined flybuys and credit card
Not so much a feature of the account, but a nifty convenience. Your credit card comes with your flybuys barcode printed on the back, so one less card to carry around in your wallet.
Insurances and interest fee period on purchases
Another feature of the Coles Rewards Mastercard is the included limited Merchandise Protection insurance, which covers items you buy with your card in case they are lost, stolen or damaged. You’ll need to read the PDS yourself to assess its suitability for you.
The card also offers up to 55 days interest-free on purchases, inline with most cards in Australia.
Note that you can’t use this card for business purposes
The Conditions of Use for the Coles Rewards Mastercard does state clearly that points won’t be earned for transactions deemed to be partially or wholly for business purposes as this is a card targeted at consumers for personal use.
Summing up: Coles Rewards Mastercard
If you’re not in need of travel benefits such as lounge access from a Visa / MasterCard, and want to use a card that offers a solid rate of return in points from your day to day spend, the Coles Rewards Mastercard can make a fantastic addition to your wallet and offer you a solid alternative to the big bank offerings.
This is especially true for overseas transactions where the lack of international transaction fee on purchases when shopping online or overseas could save a significant amount, whilst still earning your points.
And on top of that, flybuys are becoming an increasingly valuable currency that can be used for a vast range of redemptions, including your groceries, for flybuys travel, gift vouchers and, of course, for transfers to both Velocity and Etihad Guest.
Terms and conditions
Terms and conditions and exclusions apply. Click here to find out more.
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