Frequent Flyer Credit Cards

Summarise this page with ChatGPT for me.

What Your Frequent Flyer Points Are Actually Worth

We've calculated our own valuation using real Australian routes, current award charts and actual cash fares — not sourced from third parties. The table below shows CreditCard.com.au's first-party figures alongside Australian Frequent Flyer's widely-cited valuation.

Our figures are higher because we exclude gift cards, merchandise and hotel redemptions, which return 0.4–0.5¢ per point and pull the average down. If you hold a frequent flyer credit card, you're almost certainly accumulating points for flights — our valuation reflects that use case.

How we calculated this — CreditCard.com.au's 7-route basket

Full methodology: CreditCard.com.au Points Valuation Methodology (July 2026)

Formula: (Cash fare − Carrier charges) ÷ Points required × 100 = cents per point

Carrier charges are subtracted because you pay them whether you redeem with points or cash — only the points-sourced value counts. Cash fares are median non-peak mid-week one-way fares checked on Google Flights approximately 6 weeks in advance (early July 2026). Points requirements from the official Qantas Classic Reward chart (effective 5 August 2025) and Velocity award tables (current as of July 2026).

Trimmed mean (removes the single highest and lowest result before averaging): Qantas 2.47¢ per point, Velocity 2.90¢ per point. Velocity comes out ahead because Qantas carrier charges are significantly higher — particularly on European routes — and the program repriced its award chart upward in August 2025.

VA = Virgin Australia operated. SQ = Singapore Airlines, redeemed via Velocity. SQ carrier charges converted at USD/AUD 0.65. Valuation updated July 2026 — next review October 2026.

Why Velocity beats Qantas on most of these routes: the carrier charge gap

Carrier charges are the hidden variable in points valuations. You pay them in cash regardless of whether you use points — so a program with lower carrier charges delivers more real value per redemption.

Across our 7-route basket, Velocity and its partners consistently charge less in carrier fees than Qantas, often substantially:

London is the starkest example. A Qantas Economy redemption to London costs 63,500 points plus $580 in carrier charges — $580 you pay regardless. The equivalent Velocity redemption via Singapore Airlines costs 80,000 points (16,500 more) but only $310 in carrier charges. That $270 saving partially offsets the higher points requirement. On domestic routes Qantas and Velocity are near-identical. The further you fly, the more carrier charges favour Velocity.

What changed in the last 12 months

Qantas — August 2025 repricing

On 5 August 2025, Qantas increased Classic Flight Reward prices across most of its award chart:

• Economy Classic Rewards: up ~15% on most international routes
• Business and Premium Classic Rewards: up 15–20% on longer routes
• Carrier charges: also increased alongside the points repricing
• Jetstar short-haul domestic: down ~11% (the exception)

From our own basket: a Sydney–London Economy redemption (Qantas Zone 10) now costs 63,500 points, up from approximately 55,000 at the pre-August chart rates — an increase of around 15%. A Sydney–Singapore Business seat (Zone 5) rose from approximately 71,000 to 82,100 points, a 16% increase. Both verified directly in the Qantas booking flow.

We track these changes against the official Qantas Classic Flight Reward chart (qantas.com/classic-flight-rewards/tables.html), verified at each quarterly review.

Velocity — 2024–2025 changes

Velocity also made several changes, not all positive:

• January 2025: Partner reward seat prices increased for Singapore Airlines, Qatar Airways and Etihad routes
• April 2025: In-flight earn rate dropped from 5 to 4 Velocity points per $1 on Virgin Australia flights (bookings from 2 April 2025 onward)
• October 2024: Domestic Economy baseline reduced slightly (~5%)

Velocity's reward seat redemption pricing has not moved as sharply as Qantas's. That's the main reason its per-point valuation has edged ahead.

We track Velocity program updates directly via the Velocity Frequent Flyer website and official program communications.

Guide to Frequent Flyer Credit Cards

With a frequent flyer credit card you can earn points to redeem within an airline program. Points can be exchanged for flights, flight upgrades, hotels and other travel and lifestyle perks.

A quick snapshot of do's and don'ts

5 steps to choosing a frequent flyer credit card:

Does it cost money to join a frequent flyer program?

Yes and no. Some programs have a joining fee but so many ways to join for free that you should never, ever have to pay. Here's how to join each program and any fees you can artfully avoid:

Qantas Frequent Flyer:

Velocity Frequent Flyer: 

Emirates Skywards:

Singapore Airlines Kris Flyer:

While the offers between these cards do vary, a good place to start is to work out how many frequent flyer points you need to actually book a flight.

A one-way flight from Sydney to Melbourne in economy, for example, will cost approximately 8,000 Qantas Points without tax and 12,500 including tax.

Using a standard measure of one Frequent Flyer point per $1 spent, that would mean charging at least $8000 on the card for a standard capital city-to-city flight.

Finding a program that offers uncapped earnings, like an ANZ Frequent Flyer card is one way to optimise benefits from the points system. Some cards do offer more than one point per dollar, however, so checking individual credit cards in detail can make a difference.

How to redeem points?

Both Qantas and Velocity allow you to redeem points through their respective websites and apps. For Classic Reward (fixed-price) seats, availability is limited — particularly on popular routes during peak periods. Searching 330 days in advance gives the widest choice on Qantas; Velocity releases seats on a rolling basis.

For partner airline redemptions (e.g. Singapore Airlines via Velocity), you'll typically need to call the program's service line rather than booking online. This is worth doing for premium cabin redemptions, where the value per point is highest.

One practical note: if you're redeeming for a Business or First Class seat, compare the Classic Reward price against the Points Plus Pay option. Classic Rewards have a fixed points price regardless of cash fare — Points Plus Pay scales with the fare and rarely offers comparable value on premium seats.

How to use a Frequent Flyer Credit Card

Getting more out of a frequent flyer credit card is about understanding what to do with the card and what not to do with the card. This means knowing when your statement period ends, and when you have to have your full balance paid to avoid interest charges. On top of that, there are some ‘dos’ and ‘don’ts’ – a lot more ‘dos’ since one of the biggest mistakes you can make is keeping a frequent flyer credit card that you don’t use often enough.

Avoid unnecessary fees and charges

There are some fees and charges you can easily avoid with frequent flyer credit cards, so watch out for these and take the necessary steps to avoid them:

Currency conversion fees (usually a $4-$5 fee plus 2-3% of the transaction value):
You can often earn more points for purchases overseas than here at home, but if you’re not careful the benefits can quickly be eaten up with currency conversion and foreign transaction fees. If you’ll be spending a lot while you’re away, consider an option with no currency conversion fees or check the fine print to see whether these are waived with your frequent flyer card (often they can be, especially for higher tier platinum cards).

Late Payment fees (Often around $20, but can be higher):
Make sure you are aware of your payment due date from your monthly statement and schedule a payment to arrive on or before that date. This may mean allowing an extra 2-3 days for a BPay payment or payment to another bank account because these can take at least a couple of business days to be processed.

There have been cases where one late payment can cost as much as $100 in fees and interest on the payment amount, so it’s worth paying attention here.

If your payment is due on the 5th of the month, any transfer should be done before the 2nd, for example to ensure it is in the right account on or before the payment due date.

Over limit fees (can be as low as $9-$10 or $25 or more):
You shouldn’t be in danger of going over your credit limit if you pay your balance off each month, but if you did opt in and consent to over limit fees rather than have the bank decline any transaction that would take you over your credit limit this is a potential fee. Consider whether you should opt out again and let the transaction be declined anyway.

Statement request fees (can be $5 or more): 
This is a fee you’d pay if you need to request a paper statement for some reason. It can easily be avoided by using online banking to view your transaction history and statements, and printing one off if necessary.

Other considerations;
Aside from fees and charges, and maximising points you should think about and research these common issues:

Which card to use: Amex vs. Mastercard or Visa?
American Express cards often offer a higher points-earn-rate than Visa or Mastercard, but incur higher transaction charges and are not accepted as widely.

Some card accounts issue two types of card with the account giving you both an American Express (AMEX) card and either a Mastercard or Visa card.

The American Express card will usually have a higher earn rate for points, but may not be accepted everywhere, so it can be used where accepted and should help your points balance rise faster. It will likely incur higher fees and charges however, which points are not earned on.

For everyday purchases where AMEX is not an option, the Visa or Mastercard will still allow you to earn points but usually at a lower earn rate, (usually between 0.5 and 1 point per $1 spent). If you’re shopping with a bonus partner you should still receive additional points when using Visa or Mastercard.

Many flyer programs will not let you have both options, and there is a range of American Express cards not linked to a specific provider, which will still let you earn points to choose from. You can view the options on the table in the link above, or our American Express page.

Terms and conditions
It’s important to understand the relevant terms and conditions around any frequent flyer card you’re considering. There may be rules or exceptions around earning and redeeming points you need to be aware of.

• Some purchase offers may apply to specific items only – i.e. more points earned when paying at a high-end restaurant (common with American Express premium cards)
• Some bills you want to pay may not be eligible to earn points
• Airlines often have their own rules about airfares and seats that are eligible to be booked with frequent flyer points. We’ve discussed this in more detail below, but rules and conditions are set by the airlines and often change. Keep up to date with current rewards conditions and policies separately to what you read here.

Best use of your frequent flyer points

The single biggest factor in how much value you get from frequent flyer points is what you redeem them for.

Flight redemptions deliver the most value — particularly in Business and Premium Economy, where the cash price of the equivalent ticket is high but the points cost doesn't scale proportionally. A redemption worth 5–7¢ per point is genuinely possible; the same points spent on gift cards might return 0.5¢.

How to calculate whether a redemption is good value:

Take the cash price of the ticket, subtract taxes and carrier charges you'd pay anyway with points, then divide the remaining value by the points required.

Example: A $7,000 business class fare costing 90,000 Qantas points + $600 in taxes:
($7,000 − $600) ÷ 90,000 = 7.1¢ per point — well above the 1.6¢ average valuation.

Example: A $150 gift card costing 30,000 points:
$150 ÷ 30,000 = 0.5¢ per point — well below the average valuation.

What to avoid: Points used for merchandise, gift cards, cashback or statement credits consistently return the lowest value in both programs. Unless you're clearing a balance that's about to expire, these redemptions are rarely the best use of points you've spent a year or more accumulating.

When to redeem early: Neither Qantas nor Velocity has a fixed points-per-dollar redemption rate — both can reprice at any time, as Qantas demonstrated in August 2025. Points sitting unused are exposed to devaluation risk. Redeeming for a confirmed flight booking locks in today's pricing.

Annual fees and ongoing costs (and the trifecta sweet spot)

Annual fees on frequent flyer cards range from $95 to $1,750. The fee alone doesn't tell you whether a card is worth it — you also need to know how much you have to spend before the points you earn cover that cost.

Break-even formula: Annual fee ÷ (earn rate × cents per point) = annual card spend needed to offset the fee through points alone.

We've applied this using July 2026 independent point valuations — 2.47¢ per Qantas point, 2.90¢ per Velocity point — and ongoing annual fees (not discounted first-year rates).

Qantas-earning cards

*The Qantas Amex Ultimate includes a $450 Qantas Travel Credit. For anyone who books at least one Qantas flight per year, this effectively offsets the annual fee entirely — dropping the break-even threshold to near zero.

Velocity-earning cards

At $1,000/month in card spend, most Velocity cards and mid-range Qantas cards already break even through points alone using our flight-redemption valuation (2.47¢ QFF / 2.90¢ VFF). Premium Qantas cards with fees above $399 typically need $1,300–$1,600/month. The cards that make most sense at lower spend volumes are those whose benefits — travel credits, lounge passes, travel insurance — carry independent value beyond the points.

What the signup bonus is actually worth

Bonus points are marketing. Here's what they convert to at current valuations:

Notes: NAB Rewards Platinum's "up to 90,000" bonus requires meeting multiple spend thresholds — confirm the structure before applying. Amex Explorer earns Membership Rewards points; the Velocity conversion uses Amex's published 2:1 MR-to-Velocity transfer rate.

Break-even figures use CreditCard.com.au's July 2026 flight-redemption valuation (2.47¢ per Qantas point, 2.90¢ per Velocity point — see our full methodology). Card terms subject to change — verify with the issuer before applying.

How long does it take to earn enough points for a redemption?

Break-even calculations show when a card pays for itself in fees. The more practical question for many cardholders is: at a typical earn rate, how long before you have enough points for an actual flight? The table below uses $2,000/month in card spend on a 1.25 pts/$1 card — 2,500 points per month earned.

A short-haul reward — Bali or Auckland — is achievable in under 8 months at this spend rate. A business class seat to London takes 5+ years of solo spend, but closer to 2.5–3 years for a household combining expenses on one card. Points expiry applies before you get there: Qantas points need one qualifying activity every 18 months to stay active; Velocity points expire after 24 months of inactivity. Both can be kept alive with a small partner earn mid-accumulation.

Frequent flyer cards you can use overseas

Some frequent flyer credit cards will offer additional points for purchases made overseas, for example the HSBC frequent flyer cards, which offer 2 points per $1 spent overseas. If you want to use the card while you’re away, you should check out the points earn rate as well as any currency conversion fee. This will help you work out whether the card is worth the annual fee and whether you’ll earn enough points to actually take flights.

Choosing a Frequent Flyer Program

Most guides frame this as a personal preference question. In July 2026, it isn't — at least not for most Australians.

Velocity currently delivers better value per point than Qantas. Independent valuations put Qantas at 1.6¢ per point and Velocity at 1.7¢. That gap is directly attributable to Qantas's August 2025 Classic Reward repricing, which raised most Economy and Business redemption costs by 15–20%. Velocity's redemption pricing was largely unchanged over the same period.

On equivalent earn rates and annual fees, Velocity delivers more dollars of value per point redeemed. That's a factual statement, not a preference.

The case for Qantas anyway

Qantas is still the right choice if you:

• Fly Qantas Business domestically or internationally multiple times per year. Business Classic Reward pricing remains competitive at certain route-and-class combinations, and can yield 5–7¢ per point on long-haul premium seats.
• Value domestic network breadth. Qantas and Jetstar serve more Australian airports than Virgin Australia.
• Already hold significant Qantas points and don't want to split your balance across programs.

The case for Velocity

Velocity is the better default in 2026 if you:

• Redeem primarily for economy and short-haul flights. Velocity's domestic Economy pricing has been more stable.
• Want international partner airline access. Singapore Airlines, Qatar Airways, Etihad and Air New Zealand cover most routes Australians actually book.
• Are starting fresh and choosing a program based purely on current redemption value.

What about Membership Rewards?

Amex Membership Rewards (MR) points transfer to both Qantas and Velocity, plus several international programs. The tradeoff is a conversion step — and transfer rates vary. For frequent flyers who aren't sure which airline they'll use most, MR-earning cards offer flexibility. For people with a clear preferred airline, a direct-earn card is simpler.

What are Velocity credit cards?

Velocity credit cards are credit cards offering cardholders the chance to become Velocity Flyer club members and earn points when they use their credit card. Velocity is the popular frequent flyer program run by Virgin Airlines and is free to join. There are Visa, Mastercard and American Express card options for Velocity rewards, not to mention the Virgin Money range.

Which credit cards have partnerships with Emirates Airlines?

Which credit cards have partnerships with Qantas?

There are credit cards from American Express, ANZ, BankSA, Bank of Melbourne, Bankwest, NAB, HSBC, St. George, Westpac and Diners Club which allow you to earn Qantas Frequent Flyer points.

How long will it take for my Frequent Flyer points to be credited?

The official answer to this (from the Qantas Frequent Flyer program) is that credit card partners usually transfer their points across to the member’s account at the same time each month. So long as you have had points transferred previously, you can check your previous statement to find out roughly when each month points should be credited.

Qantas also advises that if you have just received your first statement, the first points transfer mostly occurs after you have made your first payment.

If you are waiting for points to be transferred across, you should double check that all your membership details are correct, and that the Frequent Flyer account and your credit card are both in exactly the same name.

Some credit card providers may have certain terms and conditions allowing them to withhold points for some reason. You should check your card’s terms and conditions to see whether one of these reasons could apply and contact the bank to discuss it further.

How long should I wait to receive my Qantas Frequent Flyer member card?

The usual waiting time for a Frequent Flyer card is 10-14 business days (as per the QFF website). If you joined at the same time as you applied for a credit card you should receive both cards within a few days of each other.

If you have been waiting longer than 14 business days for your membership card, you should contact the Frequent Flyer service centre.

If you applied for membership from outside Australia, you will not receive a card, just a membership number.

Are there any other airlines besides Qantas and Virgin that have frequent flyer programs?

Yes, other airlines will often have their own frequent flyer program. For example some American Express credit cards allow points to be redeemed with a number of different airlines worldwide as well as Qantas and Virgin.

You can check which airlines non Qantas or Velocity frequent flyer credit cards allow cardholders to earn points with by reading the card’s own terms and conditions.

Do I have to make a purchase to get the free travel insurance?

You usually do need to purchase some portion of your travel ticket and/or accommodation on your credit card to be covered by the travel insurance. You can find out exactly how much, and what you need to purchase by checking your card’s terms and conditions. The insurance information is often a separate link within the main terms and conditions.

Are frequent flyer credit cards worth it?

Depending on how you use your credit card and if you pay off your balance every month, a frequent flyer credit card could be a great way to boost your points balance. If you're a regular traveller you can benefit from lounge passes and even free flights.

What is the Qantas Points Prompter?

You can add Qantas Points Prompter as an extension on your Safari, Firefox or Google Chrome browser. When you're shopping online, you'll receive a prompt if Qantas Points are available on an item.

What are Qantas credit cards?

Qantas credit cards are those offered in conjunction with a bank or financial institution operating under the terms and conditions agreed between Qantas and the card issuer. These allow Qantas Frequent Flyer members to earn points for using their credit card, whether it is American Express, Mastercard or Visa, and transfer the points directly from the bank to your Qantas membership.

Credit cards which are branded as Qantas – for example the American Express Qantas Discovery card and the HSBC Platinum Qantas credit card do not have other airline rewards programs available except that of Qantas. The Qantas program may offer access to other airlines that they have partnerships with however, (i.e. Jetstar). You should read the small print on this carefully if you have any doubt.

Do frequent flyer points expire?

Some frequent flyer points never expire, but some expire within a certain timeframe, or if you don’t use your card for a specified amount of time. It’s generally easy to keep your account active because you’ll be earning points every time you spend on your card.