The Coles Rewards Mastercard has appeal 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. There's a $99 annual fee, and the card also offers no international transaction fees on purchases, when shopping online or overseas.
- Collect 2 points per $1 on eligible spend
- 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
- Offer available to new customers only and excludes cash advances and cash equivalents
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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 fees on purchases when shopping online or overseas.
Coles are making some changes in the first few months of 2018 which will see customers with Coles credit cards have their credit contract transitioned to Citi. There are some minor changes to card benefits along the way, with the most noticeable that points will no longer be awarded on “government transactions” such as the ATO or local councils. You can find out more about these changes directly from Coles.
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 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.
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 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.
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