Velocity Credit Cards

Velocity Card Essentials

As of mid-2024, the Velocity Frequent Flyer program hit a massive 12 million members, bringing it even closer to Qantas’s 16-million memberships. The program has shown rapid growth (adding 1 million members in 2024 alone) which shows just how popular Velocity is for rewards earners.

So if you’re keen to earn Velocity Points, let’s dig into how these cards work, starting with the basics.

What is a Velocity card? A Velocity card is a credit card that earns points on Virgin Australia’s Velocity rewards program. There are two ways it can do this.

How do you earn Velocity Points?

As a member of the Velocity program, you can earn points in a number of ways.

• In the air: You can earn Velocity Points when you purchase eligible flights with Virgin Australia and its airline partners, flying to more than 600 destinations worldwide.
• With bonus points: If you climb the ladder to become a Silver, Gold or Platinum level member, you will earn a Velocity Points bonus when you book with selected Velocity travel partners, as well as on flights with Virgin Australia and its partner Etihad Airways.
• On the ground: You can earn Velocity Points when you make a booking with Virgin’s global travel partners, as well as with its everyday partners, such as BP, Virgin Active, onsport.com.au or ride sharing company Ola.

Of course, if you also have a Velocity credit card, you have the opportunity to ‘double dip’ on your spending. When you use your Velocity card to book flights with Virgin, for example, you could earn more points per $1. The same applies when using your card with Virgin partners. Not only do you earn points for shopping with these partners, you also earn points on your card spending as standard.

Are there different levels of Velocity membership?

Velocity membership is tiered. When you join the Velocity program, you start at the Red level. From there, you can move up to Silver, Gold and Platinum levels, according to how many Status Credits you earn each year. With each tier you ascend, you gain certain privileges. These can include a higher points earn, Virgin Lounge access, priority check-in and extra luggage allowances.

How do Velocity cards work?

A Velocity card is a rewards card, which means it rewards cardholders with points that can be redeemed within the Velocity program. Over 29% of Aussies choose credit cards for Rewards points because they help to offset costs and make travel and entertainment cheaper. Velocity cards offer a variety of rewards levels and perks so you can choose the one that suits you.

Earning Velocity points, tiers and caps

If you’re after a card that earns Velocity Points on your spending, you’ll need to understand how the points structure works. You need to know:

• How many points you earn per $1/li>
• Whether there are points tiers for different purchases/li>
• Any caps on the amount you can earn per month or year/li>
• Types of purchases excluded from earning points

The earn rate:

The earn rate is the amount of points earned per dollar spent. All cards will have different earn rates, and these can change if the issuer decides. The earn rate is usually higher for higher-cost cards.

For example, the American Express Velocity Platinum credit card has a $440 annual fee and earns 1.25 Velocity Points per dollar, while the Virgin Australia Velocity Flyer credit card earns 1 Velocity Point per dollar but is only $149 p.a..

Points tiers:

Some cards may earn points at different rates depending on your purchases. The American Express Explorer credit card earns 2 points per dollar on everyday purchases, and 1 point on government spending. Other cards may earn more points for shopping at certain retailers or on international spend.

Point caps:

While not so common anymore, there are credit cards that limit the amount of points you can earn. Since Aussies use their credit cards 23.2 times per month on average, a points cap can drastically limit your earning potential. Points caps can look like:

• Reducing the number of points earned per dollar once a threshold is reached. For instance, the Virgin Australia Velocity High Flyer credit card earns 1 Velocity Point per dollar until you’ve spent $8000 in a month, after which you’ll earn 0.5 points per dollar until the new statement period.
• Cutting off earning points once the threshold is reached. This is less common, but means you won’t earn any points until the next renewal year once you’ve either spent to a certain limit, or earned a certain number of points.

What doesn’t earn points?

If you check any rewards credit card’s PDS, you’ll see a section on “Eligible Transactions”. These transactions will earn points according to the card’s earning structure, while transactions outside of these are considered “ineligible”.

Ineligible purchases typically cash advances, balance transfers, BPAY payments, government charges (including ATO and council rates), fees, interest, or refunded transactions.

However, some cards, like American Express, may earn points at a lower rate on government spending. There are also variations on ineligible purchases between cards, so you need to check the card’s PDS.

For instance, this is a snapshot of ineligible purchases between Virgin Money cards and Amex cards:

How do you redeem Velocity Points?

Once you have accumulated enough points, you can redeem them for rewards. We’ve created a Complete Guide to Velocity that gives you more detail on redeeming points, but here is a quick overview:

• Flights: You can redeem your points for flights to over 600 destinations worldwide.
• Upgrades: You could opt for an upgrade when flying Virgin Australia, where you can experience the luxury of Business Class on Domestic and International Short Haul flights. You now also have the option of upgrading when you fly on an eligible Delta Air Lines flight with a VA flight number.
• Travel: Redeem your points for travel with Virgin’s car hire and hotel partners, or book through Virgin Australia Holidays.
• Velocity Rewards: Choose from hundreds of products and gift cards, with big names such as Dyson, Bose and Apple heading the bill.
• Onsport.com.au: You can redeem your points or use a combination of Points + Pay to purchase a wide range of fitness and sporting goods from the world’s biggest sport and fitness brands.

Which credit cards earn Velocity Points?

A wide range of cards in Australia that offer Velocity Points, but some of the most popular brands are:

• ANZ Rewards Platinum - Velocity Offer
• American Express Velocity Platinum Credit Card
• Virgin Australia Velocity Flyer Credit Card – Bonus Points
• American Express Velocity Escape Plus Card
• Virgin Australia Velocity High Flyer Credit Card

These cards come with a wide range of bonus points, earn rates, annual fees and extras so you can find one that earns you the most points for your spending.

What is the best credit card to earn Velocity points?

There is no "one" best card that'll earn you Velocity Points. You need to weigh up things like earn rates, bonus points, retail partners, points capping, annual fees and many more. Once you work out what is important to you, then you're heading in the right direction.

Velocity Credit Cards vs Qantas Credit Cards

Virgin Australia’s main competition in the frequent flyer space is of course Qantas. There are plenty of Qantas credit cards to choose from, each of which allows you to earn Qantas Points on everyday spending.

Rewards Credit Cards

There is a lot more to rewards than just frequent flyer programs. Within Australia, there are heaps of rewards programs to choose from. Not only does each of the Big Four have its own rewards program, other providers such as American Express offer rewards programs of their own.

Check out our selection of rewards cards to find offerings from the big banks and beyond. When weighing up your options, be sure to take into consideration each card’s annual fee, its earn rate, and what kind of value it will offer on your spending.

No Annual Fee Cards

With the economic downturn and cost of living crisis causing so much financial uncertainty, you may decide that a rewards card – with its typically higher annual fee – is not for you. If you want to save on annual fees, take a look at our selection of no annual fee credit cards.

Some savvy shoppers are using their rewards points to cash in for gift cards and cashback. This can help bring down the final cost at the register if used correctly.

This practice is generally frowned upon by frequent flyer points nerds, but sometimes anything that helps, works!

While these cards tend to be somewhat basic, they can work for cardholders looking to simplify their wallet – and can offer serious savings compared to premium cards and rewards offerings.

Low Interest Cards

To make a rewards card work for you, you need to clear your balance each month. Why? When you carry a balance, you pay interest. Given the fact that rewards cards typically have a higher interest rate, any interest you pay will quickly wipe out any value in rewards you receive.

So, if you tend to carry a balance, you may want to consider switching to a card with a low interest rate as an alternative to higher interest rewards cards. And while low rate cards tend to have fewer features, they could help you save big money.

How do you choose the best Velocity card for you?

Comparing Velocity cards is easy when you have CreditCard.com.au on your side. But, what should you look for when you’re comparing options? Here are some of the most important factors that will impact your decision.

• Your Spending Habits: For your Velocity card to be worthy, your annual card spend must equate to a higher points value than your annual fee. To calculate this, first estimate your annual spend, and then work out what that equates to in Velocity points. Taking into account what you would redeem those points for, work out the dollar value of your annual spend in points form. Now, all you need to do is compare that to the amount you will pay in annual fees.
• Your Travel Habits: Some Velocity cards offer a higher points earn on Velocity purchases, while others offer the same earn rate across the board. If you travel frequently with Virgin and its partners, opting for a card that rewards this style of spending may allow you to earn points faster and get more value from the card.
• Your Repayment Habits: One of the most important things to remember about rewards options such as Velocity cards is that you need to minimise outgoings to maximise the value of the points you earn. That means avoiding unnecessary fees and interest by always paying your balance each month in full and on time.

FAQs

Q:Do Velocity points expire?

A: No, Velocity points technically don't expire, however the Velocity website states that accounts which have no points earned or redeemed within a 24-month period may become inactive and be closed. Any remaining points balance would be terminated if that happened.

Q: Can I transfer Velocity points to another Velocity member?

Yes, Velocity offers Family Pooling which allows members to pool points and status credits with family members over 18 living at the same address. You can also transfer points to other eligible family members up to 4 times per membership year.

Q: What is the typical annual fee for Velocity credit cards in Australia?

A: Annual fees for Velocity credit cards usually range from $175 to $440 per year. Some cards have an additional Velocity Rewards Program fee. For example, the Westpac Altitude Velocity Platinum has a $175 annual card fee plus a $75 annual Velocity Rewards Fee.

Q: What is the average Velocity Point earn rate per dollar spent on these credit cards?

A: Velocity Point earn rates per dollar spent on eligible purchases vary, typically ranging from 0.35 to 2.25 Velocity Points per dollar. For instance, the Westpac Altitude Velocity Platinum earns 0.35 to 0.75 Velocity Points per $1, while the American Express Velocity Platinum Card can earn up to 2.25 Points per $1 spent. Some cards also reduce how many points you earn per dollar after meeting a certain spending threshold.

Q: What travel benefits do Velocity credit cards offer?

A: Velocity credit cards are typically aimed at travellers, so they may offer extras such as a complimentary Virgin Australia return domestic flight each year, Virgin Australia lounge access, guest lounge passes and Economy X Seat Upgrade vouchers. Some cards also include complimentary domestic and international travel insurance.

Q: Do Velocity credit cards include complimentary travel insurance?

A: Yes, many Velocity credit cards offer complimentary travel insurance for domestic and international travel when you book and pay for your return trip with the card (and other criteria may apply). Make sure you’re covered for your trip using our travel insurance guide.

Just note that other terms, conditions, exclusions and eligibility criteria will apply to these insurances. For instance, typical credit card insurance may cover medical emergencies, hospitalisation, trip cancellation or interruption, lost or delayed luggage, and rental car excess. However, there are also typical exclusions that can include pre-existing medical conditions, high-risk adventure activities like skiing, claims not booked through the card, and certain government or tax-related travel.

Q: Is it possible to earn Velocity Status Credits through a credit card?

A: Yes, it is possible to earn Velocity Status Credits with specific Velocity credit cards. For example, eligible American Express Velocity Platinum Cardholders can earn up to 100 Velocity Status Credits each year by meeting specified spending thresholds.