In October 2016, Coles and Velocity launched a partnership which had been rumoured for some time, opening up the opportunity to transfer your hard-earned flybuys points over to your Velocity Frequent Flyer account.
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Coles are now treating flybuys as their own flexible points currency, building on their large number of existing points earn partnerships already in place and adding new transfer partners.
Note: The flybuys and Etihad Guest partnership came to an end on 31st July 2018. Which means linked members are no longer be 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.
How to transfer flybuys to Velocity
Get started by linking your accounts here.
- 2,000 flybuys points (minimum) can be transferred over to Velocity, at a rate of 2,000 flybuys = 870 Velocity Points
- There’s a maximum transfer limit of 138,000 flybuys points, equivalent to 60,030 Velocity Points, annually
- Throughout the year, you can pick up a transfer bonuses and if you have your email registered with Velocity, you can often pick up upwards of 200 bonus points for linking your accounts
There is a unique Velocity status earn option too:
- You’ll also earn 1 Velocity Status Credit for every $100 spent at Coles, Coles Online, Liquorland and First Choice Liquor (total spent per month across multiple transactions)
- There’s a limit of 10 Velocity Status Credits that can be earned each month through flybuys spend, so a maximum of 120 yearly
The annual cap is a shame for high flybuys earners (and flybuys gamers) who maximise their flybuys earn from targeted bonuses. However, the status credits earn is a great, unique option which might help get you over the line toward Silver, Gold or Platinum with Velocity.
Read how Brandon maximised this partnership to reach Velocity Gold status.
The nerdy angle: how the maths stacks up
flybuys points are worth a minimum of 0.5c per point, based on redeeming 2,000 of them at the checkout for a $10 discount on your shopping.
The challenge, or the game, is how to get more value from them than the 0.5c per point on offer from Coles. This is where partners like Velocity come in.
However, you’re also essentially buying Velocity Points by choosing to transfer them from flybuys. You’ll want to be sure you’re getting more than 0.5c per point in value.
When transferring flybuys points to Velocity, you’re purchasing Velocity Points at a rate of 870 per 2,000 flybuys points. 2,000 flybuys points has a $10 value (at Coles), so you are paying 1.15c per Velocity Point if you make a flybuys points transfer.
I value Velocity points, I put around 1.8c per Velocity point, so, while the cost/benefit comparison is marginal, it is certainly still worth considering for when you have a flight redemption in mind.
However, if you redeem your Velocity points for less than 1.15c per point in value, you have gone backwards. Points + pay bookings with Virgin Australia? Most of the time you’d get more value out of them at the checkout.
Summing up
This partnership does not materially change anything about my shopping or points collecting habits. I’ve already written how supermarket loyalty is essentially the opposite.
That said, it is great to have the extra points redemption option for the points we are already earning.
A secondary impact of the partnership is turning flybuys into its own flexible points program with multiple redemption partners, meaning earning flybuys through other products and services outside of Coles – including credit cards and insurance – has now become a more rewarding option.
Remember you’ll get a 5,000-Starpoint bonus when for every 20,000-Starpoint block transferred.
I use both a velocity card and a prepaid Coles credit card to earn flybuys points (plus insurances).
I haven’t yet transferred my flybuys points over to velocity because I thought I would be losing out – so thank you for this article.
Coles have recently announced they’re no longer issuing prepaid credit cards and velocity is still promoting a bonus to transfer, over 6 months later.
Do you think there’s any particular reason behind this?
I understand that the value is of Velocity is gained by redeeming flights, etc, but it’s scary how a noob could potentially lose 50% of their value by rushing to convert their Flybuys points and not understanding how to get maximum value from the Velocity scheme.
I have a quick question. I have been saving my Flybuys points to use for accommodation at some time in the future. Do you think I should continue saving them as Flybuys point or should I send them across to Velocity?
Yes, when redeeming you would try to get the highest redemption value per point, but assuming that you’ll be able to land that redemption at that value may be putting the carriage before the horse. The points valuation post is a good place to start to get your head around FF values.
https://www.pointhacks.com.au/rewards-points-valuations/
I am curious as to how you work out what points are worth. If I have 100,000 Flybuys points ($500 worth of Coles shopping) and convert them to velocity I will receive 43500 points or 50025 with the 15% bonus. These points would convert to 37043 Krisflyer points which calculated on a $7000 business class flight to Europe (after taxes) is equivalent to $1600.Is this right or am I miscalculating somewhere.
Can you let me know how you worked this part out (not the conversion, but the $7,000 flight -> $1600 points value component. Thanks!
Further benefits include no intl fees much like the 28 Degrees MC, and the fact you earn FlyBuys points on those intl transactions, makes this a pretty decent MasterCard to keep in your wallet when travelling. And of course, FlyBuys points stack when you scan at the checkout at Coles.
Other benefits include concierge service (which I haven’t tried), and free delivery on Coles Online orders over $100 (also a benefit I have yet to take advantage of). Points earned from MC spend are allocated to your FB account daily, and FB>VA transfers are pretty much immediate, something I already tested.
The card typically doesn’t have massive sign up bonuses, but they do run promos on a semi-regular basis of $100 off a Coles shop, or 20000 bonus points, which is enough to offset the first year’s fee. The low $89 annual fee and min credit limit of $6000 makes this a relatively accessible card with a decent points earn, meaning that the card can easily break even, especially if you make lots of foreign currency purchases.
To draw a quick comparison after the first year of card ownership, lets take a St George Signature Visa card. It carries a $279 annual fee and would have a 10% birthday bonus earning 0.825 QF points per dollar spent worth 1.4c each. The two complimentary Qantas Lounge passes are pegged at $50 each for the sake of the argument. If we only count local spend, the St George card would have to spend over $375000* before overtaking the Coles Rewards MC earning 0.87 VA points worth 1.3c each. If we take a 15% FB>VA transfer bonus in to the equation, the lines never even cross.
Switching over to KrisFlyer on the St George card (worth 1.7c each) but pegging the Priority Pass lounge passes at only $35 each (if that, seeing as how hard it is to redeem these passes locally), you’d have to spend $44200 to benefit over a Coles Rewards MC. After a 15% FB>VA bonus? $117900*.
I’ve had this card for a few years now, and in my mind this card has gone from an average card to a fantastic card. Yes, I did a lot of geeking out over the weekend, with lots of comparisons. =]
*Of course this doesn’t take into account the FB>VA transfer limit, but obviously this is just for illustration purposes. If you’re really spending that much anyway, you’d probably be better off with neither card and probably should go for something like the Citi Prestige.
Am I right in my assumption that it will in some cases still be better to transfer any flybuys points you have to Etihad Guest for Virgin Australia Domestic economy reward redemptions?
One example that springs to mind would be Melbourne to Hamilton Island for 6900 Etihad Guest Miles plus taxes which is equivalent to 17,250 fly buys points at the current transfer rate of 10,000 flybuys points for 4,000 Etihad Guest miles
If redeeming a seat through Virgin this would set you back 17,800 Velocity points plus taxes which using the standard transfer rate of 2000 flybuys points for 870 velocity points comes out at 40,920 flybuys points. Even at the current bonus 15% transfer rate would still come in at 35,582 flybuys points
So status credits double-dipping wouldn’t work unfortunately, but would you still get the double up on flybuys points?
I am curious as to how you work out what points are worth. If I have 100,000 Flybuys points ($500 worth of Coles shopping) and convert them to velocity I will receive 43500 points or 50025 with the 15% bonus. These points would convert to 37043 Krisflyer points which calculated on a $7000 business class flight to Europe (after taxes) is equivalent to $1600.Is this right or am I miscalculating somewhere.
A lot of us have been wondering when are you going to cover the fare structure changes and frequent flyer changes that VA have made recently. The getaway, elevate and freedom fares and changes to SC earn is a huge deal and it hasn’t been mentioned once on pointhacks.