ANZ have made one of the first major moves of credit card changes this year, severing ties with American Express, with their range of rewards cards now including a Visa only.
Existing cardholders will be able to use their American Express cards up to August 5th, with the corresponding Visa earn rate changes effective immediately. New applicants won’t receive a companion American Express card as of today.
ANZ’s product line up hasn’t otherwise changed much – there are no new or removed cards – but the existing ANZ Rewards cards now also have points caps applied, although these are waived on these cards until August 5th.
We’ll publish updated guides to each of the following cards soon to reflect the new product offering.
In summary, ANZ have:
- Removed the companion American Express from all accounts
- Increased earn rates on most of the Visas, up to a points cap
- Added points caps on the ANZ Rewards cards, after which earn rates are reduced
Here’s a summary of the revised earn rates:
| Card | Old Earn Rates | Change in Earn Rate before Points Cap | New Earn Rates / Points Caps | |
|---|---|---|---|---|
| American Express | Visa | Visa only | Visa only | |
| ANZ Frequent Flyer Black | 1.5 Qantas Points per $ | 0.75 Qantas Point per $ | +0.25 Qantas Point per $ | 1 Qantas Point per $ spent up to $7,500 per statement period 0.5 Qantas Point per $ spent above $7,500 per statement period |
| ANZ Frequent Flyer Platinum | 1.5 Qantas Points per $ | 0.5 Qantas Point per $ | +0.25 Qantas Point per $ | 0.75 Qantas Point per $ spent up to $3,000 per statement period 0.5 Qantas Point per $ spent above $3,000 per statement period |
| ANZ Frequent Flyer | 1 Qantas Point per $ | 0.5 Qantas Point per $ | None | 0.5 Qantas Point per $ spent up to $500 per statement period 0.25 Qantas Point per $ spent above $500 per statement period |
| ANZ Rewards Black | 3 ANZ Rewards points per $ | 1.25 ANZ Rewards points per $ | +0.75 ANZ Rewards points per $ | 2 ANZ Rewards point per $ spent up to $5,000 per statement period 1 ANZ Rewards point per $ spent above $5,000 per statement period |
| ANZ Rewards Platinum | 2 ANZ Rewards points per $ | 1 Reward point per $ | +0.5 ANZ Rewards points per $ | 1.5 ANZ Rewards point per $ spent up to $2,000 per statement period 0.5 ANZ Rewards point per $ spent above $2,000 per statement period |
| ANZ Rewards | 1.5 ANZ Rewards points per $ | 0.75 Rewards point per $ | +0.25 ANZ Rewards points per $ | 1 ANZ Rewards point per $ spent up to $1,000 per statement period 0.5 Rewards point per $ spent above $1,000 per statement period |
| ANZ Rewards Travel Adventures Card | 2 ANZ Rewards points per $ | 1 Reward point per $ | +0.5 ANZ Rewards points per $ | 1.5 ANZ Rewards point per $ up to $2,000 per statement period 0.5 ANZ Rewards point per $ above $2,000 per statement period |
For the ANZ Rewards range, this means the cards now earn points into Velocity, KrisFlyer and Asia Miles as follows:
| Frequent Flyer Program | Transfer Rate | ANZ Rewards Black Effective Earn Rate | ANZ Rewards Platinum Effective Earn Rate |
|---|---|---|---|
| Velocity Frequent Flyer | 2 ANZ Rewards points to 1 Velocity Point | 1 Velocity Point per $1 | 0.75 Velocity Points per $1 |
| Singapore Airlines KrisFlyer | 3 ANZ Rewards points to 1 Krisflyer mile | 0.66 KrisFlyer miles per $1 | 0.5 KrisFlyer miles per $1 |
| Cathay Asia Miles | 3 ANZ Rewards points to 1 Asia Mile | 0.66 Asia Miles per $1 | 0.5 Asia Miles per $1 |
| Air New Zealand Airports | 200 ANZ Rewards points to 1 Airpoints Dollar | 0.010 Airpoints per $1 | 0.0075 Airpoints per $1 |
Summing up – is this a good or bad move by ANZ?
This is first major adjustment by one of the big banks as a result of the changes to interchange fees put in place by the RBA, and which come into effect on June 1st – just like last year, these will have a fairly sweeping effect on the points and credit card market in Australia, and it won’t be until the dust settles fully will we know the full impact on rewards credit card users.
We tracked the changes that come through last year and will do the same again as more banks revise their offerings.
ANZ’s changes have been announced with several months notice, which allows customers to consider their options, and they aren’t overwhelmingly negative – those who spend up to and around the points cap will be better off, with the higher spenders for each card type.
It will likely push a few ‘Classic’ and Platinum cardholders up the ANZ card range if they want to earn more points without hitting their points cap – if they want to stick with ANZ. But many cardholders reliant on American Express card spend to boost their points earn may look elsewhere.
ANZ Rewards also haven’t adjusted transfer rates to their frequent flyer partners, which is to be commended – doing that while keeping earn rates the same has a similar effect as changing earn rates on cards, but is harder for consumers to understand, so it’s great that ANZ have simply adjusted their earn rates and added points caps to not make the program more complex.
The removal of an American Express option is obviously a blow for those who could put a significant amount of spend on their ANZ-issued American Express cards, with the revised Visa earn rates understandably still below the existing points earn rates on the companion American Express cards.
It also makes ANZ cardholders ineligible to take part in offers through Amex Network, as well as removal of the Sydney American Express lounge access for ANZ Black cardholders.
An American Express spokesperson gave us this comment: “While we have had a very successful partnership with ANZ, we understand the decision in the context, and as a consequence of the current regulatory environment. People can continue to enjoy American Express service and rewards programs through taking up a credit card with us directly or with one of our other bank partners.”
As retirees we can’t get banks to accept our substantial assets to qualify for any new credit cards!
But good on Amex because I found a way around the too-low income problem, and my Explorer card will arrive soon. Yippee!
We still need a card for supermarket, etc, type shopping, where Amex isn’t accepted.
As we still have credit cards with ANZ and Commonwealth, we CAN change to points cards with those banks.
Which should we choose, considering we won’t need an Amex tie in!
Remember! All this is just to get some points-love back from our massive CGT tax bill!
I was doing some calculations and came to the following conclusion: –
2 ANZ rewards point = 1 velocity point = 0.74 krisflyer miles using the 1.35 velocity points to 1 mile conversion
Would this be a more effective (though administratively more difficult) exchange rate to accrue krisflyer miles or am I missing a loophole here?
Phoned ANZ, had no idea.
Expressed my concerns.
ANZ advised me to look else where if I wasnt happy – so I am.
We are travelling to the States and Canada in October, and have already secured our rental vehicles with our Amex Connect discount benefit. Now that our Amex with ANZ will no longer exist, what options do we have for all our bookings secured with Amex and requiring the same card to be shown at time of pick up? (This applies to a few hotels too).
Is it worth looking to move to NAB or do you think other banks will follow suit? I am tempted to cancel my CC and reapply for a new standalone AMEX closer to travel. Your thoughts would be appreciated!
To score the discounts you will need an Amex as you know, but none of Westpac, NAB or Commonwealth have moved yet. There is still a fair bit of time though.
I am not sure how big the discount is but Amex Connect isn’t offered with Amex-issued cards, you’ll need a bank-issued Amex to make use of it, so bear that in mind too.
After spending 3 days and 2 nights researching on the internet success less,
I really need your help!!!
Thanks Manu
If my husband is my additional card holder but now he wants to apply to ANZ FF Black card himself, will he still get the 75,000 bonus point ?
Can you confirm whether this is will continue post August?
Also it would be great if Points Hacks can publish an article on which cards pay points on Bpay and if they are capped or not as well as earn rates?
Brad
https://www.anz.com.au/promo/personal/credit-cards/Changes-to-rewards-and-frequent-flyer-cards/
And then what do I do with all the points!?
Not happy with the annual fee being charged when the service on offer has been significantly altered.
Wondering if I can demand ANZ either wave the annual fee or cancel the account with a refunded fee due to not getting what I paid for.
1 point per dollar spent on VISA effect now (“with the corresponding Visa earn rate changes effective immediately. “) but not capped until 5th August? If my reading is correct then we definitely have an window to maximise points.
That said, I cannot find any references to the new Visa rates being effective immediately. Can anyone confirm ?
E.g. Most serious AMEX users would have an AMEX issued card with bonus spend (e.g. x3 points @ supermarket, or x3 points at restaurants). Top earn rate on V/MC would be 1 point per dollar or ~2 cents (2%). Shouting a $50 round at the pub would get me $1 worth of points on V/MC, or I could pay another $1.50 (@ 3% surcharge and x3 points) and earn $3. I still come out ahead using AMEX, even with a 3% surcharge.
In your opinion, what do you think AMEX’s reaction will be to the likely trend of banks removing Amex from their own offerings? Do you think they’re going to go on an extensive campaign to try and capture those people who may have previously held Bank Amex’s but never held a standalone AMEX? Could we expect AMEX to come out with some bigger sign on bonuses or new products?
Cheers
Ryan