Point Hacks Credit Card Guide

Coles Rewards Mastercard – earn 2 flybuys points per $1 on spend plus no international transaction fees on purchases

Coles Rewards Mastercard - $100 off a single Coles Supermarket shop

The Coles Rewards Mastercard has $100 off a single Coles Supermarket shop on offer for new cardholders. Earns flybuys points which are transferrable to Etihad Guest, Velocity Frequent Flyer or redeemable at Coles supermarket checkouts. With a $99 annual fee, the card also offers no international transaction fees on purchases when shopping online or overseas.

  • $100 off a single Coles Supermarket shop for new customers until 31st December 2017 (terms apply)
  • Earn 2 flybuys points per dollar spent
  • Equivalent earn rate of 0.87 Velocity points or 0.8 Etihad Guest Miles per $1 spent, if transferred
  • No international transaction fees on purchases, when shopping online or overseas
  • Combined flybuys and credit card - includes Coles Pay Tag for convenience
  • $99 p.a. annual fee
  • $100 off a single Coles Supermarket shop is activated on your flybuys account and available for use within 2 weeks of your first eligible purchase
  • To redeem the $100 off, you must scan your flybuys barcode on the back of your new Coles Mastercard and spend a minimum of $100.05 after savings and discounts in one transaction at Coles Supermarkets or BI-LO, excluding smoking/tobacco purchases and all gift cards
  • $100 off can only be used once and expires on 31st March 2018, and can't be used at Coles Express or Coles Online
  • Offer available to new customers only and excludes cash advances and cash equivalents
  • Offer ends: 31 December 2017

Find out more or apply →

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The Coles Rewards Mastercard appeals to points collectors looking for a solid Visa/Mastercard with a number of good value features and flexibility in how you can redeem your points.

In particular, the flybuys tie-up with Etihad Guest and Velocity makes this card appealing for those interested in frequent flyer points, with a reasonable annual fee of $99 for new customers.

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.

The card makes an appearance on both our highest-earning Velocity credit cards and highest-earning Etihad Guest miles credit cards guides.

flybuys can be transferred to both Velocity and Etihad Guest for cheap Virgin Australia Business Class redemptions

This is a no-frills card designed for the everyday shopper, i.e. there are no travel perks such as lounge access, as it is 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 fees on purchases when shopping online or overseas.

Card Details

CardColes Rewards Mastercard
Loyalty Programflybuys
Points earned from spend2 flybuys points per $ spent on eligible purchases
Overseas transaction feeNone for purchases
Minimum Income$25,000 p.a.
Annual fee$99 p.a.

Effective Frequent Flyer Program Point Earn Rates

Partner Frequent Flyer ProgramEquivalent partner points earned
Velocity Points0.87 points / $ spent
Etihad Guest Miles0.8 Miles / $ spent

Earning flybuys points with the Coles Rewards Mastercard

You’ll collect 2 flybuys points for every dollar you spend on the card. 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 fees on purchases when shopping online or overseas

With the Coles Rewards Mastercard you’ll save on foreign exchange fees (whilst still earning points), where these fees can be up to 3.5% on overseas purchases on cards which apply them.

It’s worth understanding that the no transaction fees 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, with Coles Pay tag

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.

You can also get a Pay tag to stick on the back of your phone, again pre-printed with your flybuys barcode (which can be quite convenient when using the self-scanner at Coles checkouts when shopping) and a contactless chip to use for PayPass without pulling your wallet out.

Pay tags aren’t issued for supplementary cards, unfortunately, which would be a handy win for households using the card with more than one cardholder.

Insurances and interest fee period on purchases

If you are approved for a credit limit of $6000 or higher you’ll be issued with the Platinum variant of the card, with all the same features but the addition of a limited Merchandise Protection insurance. You’ll need to read the PDS yourself to assess its suitability for you.

The card also offers up to 62 days interest-free on purchases, which is one of the longest interest-free periods on rewards cards in Australia.

With most cards offering 44 or 55 days (from the time a statement period begins until payment is due), and some of the recent devaluations cutting interest free days, this card has a clear benefit if you are looking for more interest free days on purchases.

What this means is that as long as you pay your full balance every month, the time between making a purchase on the card and having to pay it off is longer.

The longer the time period, the more time that money could potentially be working for you in other ways, such as sitting in a mortgage offset account saving you interest, or earning you even more points in a different account.However, interests would of course be payable as soon as the expiry of the 62 days.

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.

The Conditions of Use does not explicitly exclude points being earned for government or ATO transactions, so if you have a personal tax bill to pay, you should be able to earn points on the transaction.

Summing up: Coles Rewards Mastercard

If you are 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 fees 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.

Coles Rewards Mastercard – earn 2 flybuys points per $1 on spend plus no international transaction fees on purchases was last modified: December 14th, 2017 by Keith

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Comments Expand Comments

  1. Kalyan

    Did we anyone receive the velocity gold status with the flybuys promotion on this card. I was approved on 27th November but haven’t seen any change to my velocity status. I have an upcoming travel on 23rd Dec , fingers crossed.

  2. rewardsaddict

    I got an special offer on my coles app. Spend $3000 in 3 months get 30,000 flybuy points. Is this a better deal than what I got?

    • Sounds like you received a higher bonus points offer but need to spend much more to trigger it. The current offer (as of September 2017) offers 20,000 bonus points after making just one purchase within the first 30 days. It’s up to you!

  3. Mark T

    I use this card to pay my child maintenance payments and earn flybuys points in these. Most other cards have limited or no points for Australian government transactions. If you are a flybuys member there are also lots of extra points deals offered at Coles, Coles Express, Kmart, Target & Shell which really make your points take off. Also, I was recently gifted a temporary Velocity Gold membership

  4. Hi just received my approval for the Coles Platinum Mastercard, just wondering from an overseas points earning capacity am I better to use this card with no overseas transaction fees (a saving of around 3%) or use my NAB rewards card or Citi Prestige of which both charge 3 to 3.4% fees. I think the Coles card would return 1 velocity point per $ if combined with the 15 % transfer from flybuys to velocity deals they have at times. Nab rewards would return around 1.725 Velocity with bonus and city around 1.5 less o/s fees. Is this correct.

  5. Gary Foray

    Wouldn’t it be right to say that this card would still be of great benefit if you are in need to travel (as opposed to the conclusion) simply because of it doesn’t charge international transaction fee on purchases? I used to have both the Coles Rewards MasterCard and 28 degrees MasterCard, but since Coles Reward MasterCard did away with the international transaction fee on purchases, and 28 degrees started to charge ATM withdrawal fees overseas, I got rid of the 28 degrees card as there is no advantage of having both, as I was going to keep the Coles one anyway, and I also earn point with it for overseas purchases. I see this as a huge reason for getting/ keeping this card.

  6. Brigette

    Keith, do you know if any Velocity points earned (including the bonus points) will be forfeited if the card is cancelled?

    • Hi Brigette,

      Points already in your Velocity frequent flyer account shouldn’t be affected. Take note though that the Coles Rewards Mastercard earns flybuys points so make sure to transfer all the points to Velocity first before cancelling.

  7. Joy

    On the Coles card you will get some points but there is a cost above cards like 28 degrees credit card or Citbank plus debit card.

    For the Coles Card
    For most merchants, if you pay charges in Aus Dollars you usually get a less than optimum exchange rate.

    If you pay in local overseas currency you pay
    Cross-border assessment fee:
    0.8% of the transaction amount when you withdraw cash from an ATM outside Australia or when you make a purchase or cash advance at international merchants in a currency other than AUD.
    Currency conversion assessment fee:
    0.2% of the transaction amount when you withdraw cash from an ATM outside Australia or when you make a purchase or cash advance at international merchants in a currency other than AUD.

  8. If you apply through your flybys account you have the option of $100 off OR 20,000 bonus points! I opted for the points, although I thought I applied for the ‘no annual fee’ card (only 1 point per dollar) but I was sent the Platinum Rewards card? Wondering if the $89 fee is worth double points or if I call and change the card before I activate?

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