Point Hacks Credit Card Guide

Designed for the everyday shopper, the Coles Rewards Mastercard has a low annual fee and good flybuys earn rate

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 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 guides.

Note: The flybuys and Etihad Guest partnership came to an end on 31st July 2018. Which means linked members are no longer able to redeem flybuys points for Etihad Guest Miles, collect flybuys points via the flybuys-Etihad booking portal or link flybuys and Etihad Guest memberships after this date. This is the final blow to a relationship that has been suspended since December 2017.

flybuys can be transferred to Velocity for cheap Virgin Australia Business Class redemptions

Card Details

CardColes Rewards Mastercard
Loyalty Programflybuys
Points earned from spend2 flybuys points per $1 spent on eligible purchases
Overseas transaction feeNone for purchases
Minimum Income$25,000 p.a.
Minimum credit limit$6,000
Annual fee$99 p.a.

Effective Frequent Flyer Program Point Earn Rates

Partner Frequent Flyer ProgramEquivalent partner points earned
Velocity Points0.87 points / $ 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, you’ll pick up 870 Velocity Points for every 2,000 flybuys points transferred.

Reduced to a point per $1 earn rate, this equates to 0.87 Velocity Points per dollar, and you can transfer flybuys points to Velocity at any time you choose, just keep in mind the 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.

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 Velocity.

Terms and conditions

Terms and conditions and exclusions apply. Click here to find out more.

Designed for the everyday shopper, the Coles Rewards Mastercard has a low annual fee and good flybuys earn rate was last modified: March 14th, 2019 by Keith

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Point Hacks Credit Card Information

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  1. Michael Ryan

    I’m surprised there’s no mention of the price protection insurance here – I’ve easily made several hundred dollars from this and the insurance costs nothing if you pay off the balance before the statement is generated each month. Essentially, if something you’ve bought reduces in price at that same retailer you can claim the difference back within 2 years of the date of the purchase – 2 years! Use pricehipster.com to track prices and you’re set!

  2. Alan Tse

    I got this email from them, are people still getting points for tax?

    Eligible Transaction means any purchase excluding (but not limited to)
    Cash Advances, Balance Transfers, Special Promotions, BPAY payments,
    purchases of foreign currency and travellers cheques, transactions made
    in operating a business, payments to other Citi accounts, bank fees and
    charges such as interest and ATM charges, transactions made using
    flybuys Points and government related transactions. Government related
    transactions include transactions with government or semi government
    entities, or relating to services provided by or in connection with
    government (for example but not limited to transactions made at
    Australia Post, payments to the Australian Taxation Office, council
    rates, motor registries, tolls, parking stations and meters, fares on
    public transport, fines and court related costs).

    • WP Teoh

      Hi Alan,

      I didn’t read the new term and condition on eligible transactions – I just missed out on thousand of points as I just paid my water bill, council rate, electricity bill etc. I used to get points for all these before.

  3. Baz

    Is there any indication that Coles MasterCard will run another velocity gold status promo? Currently holding off for another gold status opportunity. May not be worthwhile if this looks unlikely to happen again (especially with the upcoming changes)

  4. Roman

    This card is being taken over by Citi and from March will charge international transaction fees as well as round down each transaction reducing the points earn.
    I would no longer recommend this card as there are better alternatives regardless if you are after cash back, Velocity points or want to earn points on international spend without a fee.
    It is also not clear if the current benefit of free Coles online delivery for purchases over $100 will stay.

    • Jarad

      What would be a better alternative? Ive just signed up and realised the changes coming from March. Ive got an ING everyday account that has no international fees (no ff points either) and a Amex Qantas Ultimate. Just got this for the MC/Visa back up and to put some points in to velocity when there are the 15% bonuses.

      • Roman

        It depends on what you want.
        For points domestically:
        I recommend the ANZ Black card which comes with no annual fee in the first year and 75k Qantas/37.5k Virgin Velocity points bonus
        Airline Earn Rate: 1pt/$ (up to $5k (VA) or $7.5k (QF)/statement)

        For points on international spend: (No International transaction fees)
        I recommend the ANZ Reward Travel Adventures which comes with a 40k bonus Virgin Velocity points. The $225 annual fee is offset by a free return flight and 2 Virgin lounge passes.
        Airline Earn Rate: 0.75pt/$ (Velocity up to $2k/statement)

        If you spend more than $2k/statement on international transaction fees the other cards to consider are the:
        + CBA Diamond Amex 1.5VA pts/$ (High fee which may be waived for home loan custoemers, good travel insurance)
        + Bankwest World Mastercard 0.66 QF pts/$ ($270 fee offset by unlimited lounge access)
        + Qantas Cash prepaid currency cards 1.5QF pts/$ (poor exchange rate)
        + Virgin Velocity Prepaid Global Wallet 2VA pts/$ (poor exchange rate)

  5. Baz

    Hi, looking at signing up for the Coles MasterCard if another 3 month gold status arises. But I hold a virgin money card also owned by Citi. Is this going to mean i would be ineligible for the bonuses (gold status and 20,000 flybuy points)?

  6. 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.

  7. 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!

  8. 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

  9. 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.

  10. 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.

  11. Brigette

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

    • Steven [mod]

      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.

  12. 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.

  13. 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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