[Update: For details of further changes American Express will be making to these cards, as of 15 April, 2019, please refer to this article]
When it comes to earn rates on credit cards, the only constant is change. The latest round of changes has just been announced by American Express, and affects its range of Qantas cards. The changes will take effect from June 1, 2017.
The cards affected by this round of changes are the Qantas Ultimate, Qantas Premium and Qantas Discovery cards. In an overall sense they are simplifying the earning structure. The way the change work will mean that some cardholders will come out as winners. On the other hand, some will see lower points earnings..
The big headline change is that the bonus points offered for some merchant categories will be removed. This is countered, to an extent, by an increase in the basic earn rate for the Ultimate and Premium cards.
Ultimate Card
Current Earn Rates
The Ultimate Card has the most variations of earning rates of the three cards. The current earn rates are:
- 3 Qantas Points per $1 spent at restaurants in Australia and selected Qantas products and services in Australia
- 2 Qantas Points per $1 spent on airlines, accommodation, major cruise and tour operators and spend in foreign currency
- 1 Qantas Point per $1 spent on everything else, except those in the 0.5 points category
- 0.5 Qantas Points per $1 spent on utilities, telecommunications companies, non American Express provided insurance and government bodies
New Earn Rates (from June 1, 2017)
As of June 1, the standard earn rate will be 1.5 Qantas points per dollar. Eligible Qantas spend will retain its bonus point, however, that will be on top of the standar 1.5 Qantas Points. As a result, it falls to 2.5 Qantas Points per dollar. The current lower rate of 0.5 Qantas Points per dollar will remain for government bodies.
- 2.5 Qantas Points per $1 spent on selected Qantas products and services in Australia
- 1.5 Qantas Points per $1 spent on everything else, except those in the 0.5 points category
- 0.5 Qantas Points per $1 spent at government bodies
Premium Card
Current Earn Rates
The Premium card has a standard earn of 1 point per dollar, with a bonus point offered on supermarket, petrol station and Qantas spend. The current structure is as follows:
- 2 Qantas Points per $1 spent at major supermarkets and petrol stations in Australia and selected Qantas products and services in Australia
- 1 Qantas Point per $1 spent on everything else, except those in the 0.5 points category
- 0.5 Qantas Points per $1 spent on utilities, telecommunications companies, non American Express provided insurance and government bodies
New Earn Rates (from June 1, 2017)
As of June 1, the standard earn rate increases to 1.25 Qantas Points per dollar. The bonus on Qantas spend remains, giving an increased 2.25 Qantas Points per dollar. The reduced rate of 0.5 Qantas Points per dollar remains for government spend.
- 2.25 Qantas Points per $1 spent on selected Qantas products and services in Australia
- 1.25 Qantas Point per $1 spent on everything else, except those in the 0.5 points category
- 0.5 Qantas Points per $1 spent at government bodies
Discovery Card
Unlike the other cards, earning on the The DIscovery Card becomes a little more complicated. Being a card free of annual fee, it did not have the same bonus points that the Ultimare and Premium cards had. It basically offered a standard earn of 1 Qantas Point per dollar on all spend.
Current Earn Rates
- 1 Qantas Point per $1 spent
New Earn Rates (from June 1, 2017)
Under the changes, the card will retain a standard earn of 1 Qantas Point per dollar. Government spend will reduce to 0.5 Qantas Points per dollar, bringing it into line with the other cards.
- 2 Qantas Points per $1 spent on and selected Qantas products and services in Australia
- 1 Qantas Point per $1 spent on everything else, except those in the 0.5 points category
- 0.5 Qantas Points per $1 spent on government bodies
Winners and Losers
Overall, it can be seen that in some cases points earn will fo up, while in others it falls. How it will affect a given cardholder will depend on the way they are using their cards. As many dedicated cardmembers use different cards for different purposes, this may change their thoughts on which cards to hold and use.
American Express have started notifying cardmembers of the changes in the last week. This gives three months for cardholders to decide what they want to do.