Velocity Card Essentials
With Virgin Australia in voluntary administration, the future of the Velocity program remains unclear. While you can still use your current Velocity credit card to continue to earn Velocity Points, it’s not yet known what those points will be worth once the Virgin Australia Group has been restructured.
For that reason, while you can still choose to apply for a direct earn Velocity credit card, it may be a better idea to hold off on making your application until we know for sure what will happen to the Velocity program.
We will keep this page updated as we find out more. Until then, read up on what’s been happening in our in-depth post on the Velocity topic. It provides all the need-to-know on what’s happened so far, some likely scenarios for the future, and what your options are as a Virgin credit cardholder.
You can also check out the statement Virgin Australia made to its members below in our FAQs.
Time For Change?
If Virgin Australia’s woes – and the uncertainty surrounding what’s going to happen to Velocity – is making you wonder whether a Velocity credit card is actually the right choice for you, here are some alternative options for you to consider.
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.
It should be pointed out though, with travel restrictions expected to be in place for some time, it will be a while before you can earn points on flight purchases using your card, which with this type of card typically offers a higher earn rate. You would also be unable to redeem your points on travel. As flights and upgrades typically offer the best value on redemptions, this may lower the overall value of keeping a frequent flyer credit card – for now, at least.
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 turndown 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.
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.
Velocity Cards - Frequently Asked Questions
We’re committed to keeping our members updated throughout these uncertain times of coronavirus and reduced travel.
We wanted to share some information regarding temporary changes to the Velocity program and what this means for our members.
You may be aware that some of the Virgin Australia Group companies have entered Voluntary Administration. Deloitte has been appointed as the administrators, meaning they have assumed responsibility for the business and operations of those companies in administration.
The intention of the administrators is to bring the relevant Virgin Australia Group companies out of administration as quickly as possible and return to normal operations.
Although Velocity is owned by the Virgin Australia Group, it is a separate company and it is not in administration. That means we’re still operating, but we’ve made some temporary program changes in the interests of members.
We’ve made the difficult decision to pause all redemptions for an initial period of four weeks, effective immediately. This means our members won’t be able to redeem their Points for rewards during the pause.
We know how much our members love to plan their travel and use their Points to redeem flights, however the ongoing travel restrictions and reduced flights have limited the options for them to use Points for flights. We’re seeing more members use Points to shop online for items such as gift cards, electronic goods, and wine. This unexpected demand has made it difficult for our suppliers to provide these offers and limits the availability for all members to redeem their Points.
What our members need to know:
- Your Points aren’t going anywhere. They will remain in your account.
- Your existing Points will not expire through this period. We will be extending the expiration period for your existing Points by the timeframe of the pause.
- You can continue to earn Points with our partners, although you won’t be able to redeem them during the pause.
- These changes take effect immediately. Although the initial timeframe for this restriction is four weeks, this period may be extended. We will come back to you with an update as soon as we can.
Velocity has a trustee in place to look after the interests of members. We will continue to assess a range of options for the program and we want that to include a continuation of our long-standing partnership with Virgin Australia.
We thank you for your patience, loyalty and understanding in these challenging times.
The Velocity Frequent Flyer team
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.
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.
Once you have accumulated enough points, you can redeem them for rewards.
- 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.
- Velocity Wine Store by Laithwaite's: If you fancy a tipple, use your points to pay for your choice of premium wines, beers and spirits.
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.
No, Velocity points technically do not expire, however the Velocity website states that accounts which have no points earned or redeemed within a three year period may become inactive and be closed. Any remaining points balance would be terminated if that happened.
This is known as the ‘three year rule’ and applies from the date the Velocity account was opened.
Yes, you can transfer your Velocity points balance (up to a certain amount) to eligible family members. You can make up to four transfers per year, and should read the section entitled ‘Points Transfers’ in the Velocity terms and conditions to find out more.