In today's crowded credit card market, American Express (or Amex, as it’s better known) stands out with an impressive range of benefits designed to suit a wide spectrum of consumer preferences. Two excellent Reward points options offered in their lineup are the Amex Rewards and Amex Velocity Points credit cards.
What Type of Benefits Come with Both Credit Card Options?
First, it’s handy to know that both Amex Rewards and Amex Velocity Points credit cards come with numerous core benefits that are available for both card options, which are:
✓ Purchase Protection, which safeguards your eligible purchases against accidental damage or theft.
✓ Refund Protection is also offered, providing peace of mind on eligible purchases.
✓ Cardholders can add up to 4 supplementary cardholders at no additional cost, extending the benefits to family members (which can be helpful when it comes to earning rewards points or Velocity points).
✓ Compatible with digital wallet services like Apple Pay, Samsung Pay, and Google Pay.
American Express Rewards Credit Card
Ways to Earn Rewards Points
Cardholders can earn Amex Rewards points on all eligible purchases, including transactions with overseas retailers and Australian government bodies (many other credit card brands don’t actually offer points on Government transactions).
For most people, though, the main way they’ll accumulate rewards points is by everyday purchases. For instance, you can earn points on eats and drinks, streaming subscriptions, major retailers, and more and you can even earn bonus points on these purchases depending on the card you choose.
This broad earning potential allows you to accumulate points quickly through their regular spending habits, ensuring more impressive benefits every year.
Cost of Membership to the American Express Rewards Program
One of the best parts of the American Express Rewards credit cards is that membership to their Rewards program is free to join.
When you choose a card that earns Membership Rewards points, you are generally automatically enrolled in the program.
Points Expiry and Caps
One of the other most attractive features of the Amex Rewards program is that points are uncapped and never expire.
Handily, there's no limit to how many Rewards points you can earn each year either, and as long as you retain your card and are your account is active with no missed repayments, your points will remain valid year after year.
How to Redeem Rewards Points
The Amex Rewards program offers multiple options when you’re ready to redeem your points. You can use points towards covering purchases made on your card, essentially receiving credit back to your account.
Points can also be redeemed for hotel points with the program’s major partners Hilton, Marriott, and Radisson.
For those who prefer tangible rewards, gift cards are available from popular retailers such as Amazon, Apple, and Adidas. Plus, points can be converted to several airline miles programs, offering flexibility for travel rewards. For example, you can use your points with programs run by Cathay Pacific, Singapore Airlines, British Airways, Qatar, Virgin Atlantic, Emirates, Delta, and Air France.
Other Perks Worth Knowing
Amex Rewards credit cards come with a range of additional benefits it’s worth knowing and that can vary from specific card to card. These may include Domestic and International Travel Insurance, providing coverage for your trips. Some cards offer yearly Travel Credit, which can offset travel expenses, too.
Depending on the specific Rewards card you choose, you may have access to Centurion or Priority Pass lounges so you can enjoy the luxury comfort of airport lounges when you travel. Plus, there’s Extended Warranty coverage provided on eligible purchases from Australian retailers, and some cards even offer Smartphone Screen Insurance.
Potential Drawbacks to Consider
While the Amex Rewards program is highly flexible, it's worth noting that points cannot be directly converted to Qantas Points. This may be a consideration for frequent travellers and those specifically interested in these airline loyalty programs.
As for downsides to consider, points are capped per statement period on these cards.
Also, if you often fly on airlines that aren’t included in the Qantas oneworld alliance, you miss out on points earning opportunities. You might want to have an additional card that earns points for other airlines or consider an alternative product.
American Express Velocity Points Credit Cards
Ways to Earn Velocity Points
You can earn Velocity points on a wide range of everyday purchases, including groceries and fuel. Points are also earned on government body transactions in Australia, providing additional earning opportunities.
Eligible purchases with Virgin Australia earn bonus points, so your points will rack up faster.
Cost of Membership to Velocity
Joining the Velocity Frequent Flyer program is free.
The program offers four levels of membership: Red, Silver, Gold, and Platinum, each providing different benefits. Members can earn Status Credits through various means, including eligible flights and credit card spending, to progress through these levels and unlock additional perks.
If you don’t already have a Velocity account, you can sign up for a free one after you receive your Velocity Points credit card.
Points Expiry and Caps
The Velocity Points program offers uncapped point-earning potential.
However, it's important to note that points expire after 24 months of account inactivity. This means you need to earn, redeem, or purchase points at least once every two years to keep your points active. That’s not usually difficult for most people, though!
How to Redeem Velocity Points
Velocity Points credit cards offer various ways to redeem your points. For example, you can use them for flights and upgrades with Virgin Australia or its airline partners.
The program allows for flexibility, letting you use just points or a combination of points and your own payment to redeem for flights.
Beyond air travel, points can be redeemed in the Velocity Rewards Store for gift cards, electronics, fashion items, entertainment, and other goods. Other redemption options include buying items at Virgin Wines, purchases at Myer stores or online, and booking hotel accommodations or car hire through Virgin's partnered services like Rocket Travel or Luxury Escapes. For those who prefer cash value, points can also be redeemed for cashback.
How Can I Earn More Points?
There are 5 ways to earn Status Credits in your Velocity membership:
1. Fly on an eligible Virgin Australia fare
2. Fly with Virgin’s network of eligible Airline Partners
3. Family Pool your Status Credits
4. Earn with Flybuys when you shop
5. Earn with Velocity credit cards
Other Perks Worth Knowing
Amex Velocity Points cards may offer additional benefits such as Virgin Credit, which can be used towards Virgin Australia flights.
Depending on the specific card, holders may also enjoy Virgin Lounge Access or Centurion Lounge access, enhancing their travel experience.
Potential Drawbacks to Consider
While Velocity Points are excellent for Virgin Australia loyalists, they can’t be converted to other airline miles programs, including Qantas points. However, you can still use Velocity points to book flights with Virgin's partner airlines, which mitigates the downside for many cardholders.
Snapshot Comparison Table
| Description | Amex Rewards | Velocity Points |
|---|---|---|
| Earn Points | Points on everyday and goverment body purchases. Bonus points on selected retailers and subscription services depending on the card | Points on everyday and goverment body purchases and extra points on Virgin services |
| Earning Limit | Uncapped | Uncapped |
| Convert Points | Convert points to Virgin’s Velocity Frequent Flyer, Singapore Airlines’ KrisFlyer, Asia Miles (aligned with 20-plus partner airlines), Air New Zealand’s Airpoints or Flybuys. Gift cards with popular Australian retailers | Can use Velocity points to book flights with its 16 artner airlines including Virgin Australia, Singapore Airlines, Etihad Airways & more. |
| Redeem Points | Gift cards, retail products and travel | Travel, gift cards, retail products and cashback |
| Cost | Free | Free |
| Potential Drawbacks | Cannot convert to Qantas miles. No cashback option. | Cannot conver to Qantas miles. Generally lower conversion for retail gift cards |
Redeem points comparison
| Points Reedem For | Amex Rewards | Velocity Points |
|---|---|---|
| $50 Gift Card - Amazon, Myer, DoorDash & more | 10,000 Reward Points | 9,900 Velocity Points |
| $45 Cashback | Not available | 9,900 Velocity Points |
| Flight from Sydney to Melbourne plus taxes, fees & charges | 12,400 Reward Points (convert to 6,200 Velocity Points) | 6,200 Velocity Points |
Compare Amex Rewards & Velocity Points Credit Cards
Reasons to consider these cards include that users receive complimentary insurances, and regular bonus-point offers arise. At these times, new customers signing up for a card can earn thousands of bonus points to get them started.
The cons are these cards’ purchase rates and cash advance rates are relatively high, as are their annual fees.
Plus, when redeeming points, Amex Rewards has no cashback option but you do get a better return back when redeeming gift cards. For example, it takes 10,000 Velocity points or 9,900 Amex Rewards points to get a $50 gift card from JB Hi-Fi.
Credit Card
- Bonus Points Offer
- Points Per $1 Spend
- Annual Fee
- Bonus Points Offer 225,000 Membership Rewards Points
- Points Per $1 Spend 1 - 2.25
- Annual Fee $1,450
- Domestic & International Travel Insurance
- Purchase Protection
- $450 Travel Credit Per Year
- Refund Protection
- CashbackFrequent Flyer PointsInternational Airline Program for savings of up to 20% on First and Business Class fares with leading airlines like Qantas Airways, Virgin Australia, Emirates and more.Unlimited access for you and a guest to 1,800+ airport lounges including Centurion Lounge, Priority Pass and moreConcierge Service$400 Global Dining Credit per yearFine Hotels & Resorts Program, Accor Plus membership valued at $349 p.a., Hotel Elite Status Program & International Airline ProgramApple Pay, Samsung Pay, Google PayAmex Experiences and Digital news access with the Australian Premium Subscription
- Bonus Points Offer 100,000 Velocity Points
- Points Per $1 Spend 0.5 - 2.25
- Annual Fee $440
- Free Virgin Australia Economy domestic return flight & up to 100 Bonus Velocity Status Credits Yearly
- Purchase Protection
- Refund Protection
- Frequent Flyer PointsUnlimited access to Virgin Australia lounges at select domestic airports, every time you fly Virgin Australia domestically. And for your guests travelling with you, 2 single entry passes to the Virgin Australia Lounge.Apple Pay, Samsung Pay, Google Pay
- Bonus Points Offer 30,000 Membership Rewards Points
- Points Per $1 Spend 1 - 5
- Annual Fee $108
- Purchase Protection
- Refund Protection
- CashbackFrequent Flyer PointsSmartphone Screen InsuranceApple Pay, Samsung Pay, Google PayAmex Experiences
- Bonus Points Offer 125,000 Membership Rewards Points
- Points Per $1 Spend 1 - 2
- Annual Fee $395
- Domestic & International Travel Insurance
- Purchase Protection
- $400 Travel Credit Per Year
- Refund Protection
- CashbackFrequent Flyer Points2 Centurion Lounge accesses at Sydney or Melbourne international airports per yearSmartphone Screen InsuranceThe Hotel CollectionApple Pay, Samsung Pay, Google Pay
- Bonus Points Offer -
- Points Per $1 Spend 1 - 3
- Annual Fee $195
- Domestic & International Travel Insurance
- Purchase Protection
- $200 Travel Credit Per Year
- Refund Protection
- CashbackFrequent Flyer PointsSmartphone Screen InsuranceApple Pay, Samsung Pay, Google Pay
Which Card Should You Choose?
The choice between Amex Rewards and Amex Velocity Points credit cards ultimately depends on your lifestyle and spending habits. There’s no right or wrong; it all comes down to what will work best for you.
If you value flexibility in how you use your rewards and appreciate a comprehensive set of cardholder benefits, the Amex Rewards cards are likely the better option for you. Their versatility in redemption options and wide range of additional perks make them suitable for various needs and preferences.
On the other hand, if you're a frequent flyer with Virgin Australia or particularly loyal to the Velocity Frequent Flyer program, the Amex Velocity Points cards offer tailored benefits that can significantly enhance your travels and save you money. The ability to earn and redeem points directly for flights and upgrades, combined with travel-specific perks, makes these credit cards an excellent choice for those who prioritise travel rewards, especially within the Virgin Australia network.
Consider your spending patterns, travel habits, and preferred rewards when choosing between these two excellent American Express offerings. Both cards provide substantial value, but the best choice will align with your individual needs. Whichever you choose, you'll be benefiting from Amex's renowned customer service and robust programs.
We hope you found this Amex Rewards vs Velocity Points credit cards comparison useful. Otherwise, if you're looking for more Amex credit cards, Velocity points credit cards then simply check their link to check out their current offers.
Check out other similar articles:
Best Rewards Credit Cards in Australia
Best Velocity Points Credit Cards in Australia
Best Qanats Points Credit Cards in Australia
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