Over the past few days, the American Express transfer partners page has had ‘technical difficulties’:
Are you having issues transferring your points? Here are some options:
- Try incognito mode in your web browser
- Use a different web browser, e.g. Chrome, Firefox, Safari or Internet Explorer
- Log in to your American Express account and ask a customer service representative to help you with your transfer through the live chat function (available 24/7)
- Call American Express at 1300 132 639 or +61 2 9271 8664 (available 24/7)
If you’ve still got Membership Rewards points in your account, I’d recommend transferring them out sooner rather than later, i.e. before Sunday. This will give you more of a buffer in case there are any unforeseen obstacles.
A reminder that Gateway points collectors will lose 33% of their points value and Ascent collectors 50% overnight on Sunday. Read on for advice on which program/s to transfer your points to.
How to decide what to do with your Amex points before the upcoming devaluation
Let’s look at the pros and cons of each frequent flyer partner program, and what other Point Hacks readers have chosen to do with their points.
My suggested thought process
- Where do you want to fly? Choose three programs that could get you there
- What is award availability like on that route? What is the points pricing? How much are taxes and surcharges?
- Where do you already hold existing points balances? There is little use having points scattered across many programs
- Transfer your Membership Rewards points to the best program according to your answers to the questions above
Which programs have other Point Hacks readers chosen?
Based on the responses I’ve seen on our Community forum, I would say that the top 3 recommended transfer partners have been:
Note that ‘hard expiry‘ means that points will expire after a fixed period, e.g. three years, regardless of any other points activity in your account. Conversely, ‘soft expiry’ is more consumer-friendly and means that if you make an earn or redeem activity, then all points in your account take on the new (longer) expiry date.
A comparison of the transfer partners
| Transfer partner | Pros | Cons |
|---|---|---|
| Singapore Airlines KrisFlyer | No fuel surcharges on Singapore Airlines flights Free/cheap stopovers Part of largest alliance in world (Star Alliance) Flies to most major Australian airports Ability to transfer to Velocity (although transfer rate devalued in January 2019) Ability to book round-the-world tickets | Hard expiry (36 months) January 2019 devaluation of Singapore Airlines award chart Upcoming mid-April 2019 devaluation of partner charts |
| Cathay Pacific Asia Miles | Part of oneworld alliance, including Qantas, Cathay Pacific and Japan Airlines Relatively easy to book online Lower redemption pricing than Qantas | Hard expiry (36 months) June 2018 devaluation of award chart Relatively high taxes and fuel surcharges |
| Virgin Australia Velocity Frequent Flyer | Easy to redeem in Australia Familiar to most Australia-based travellers Can redeem on Virgin Australia, Singapore Airlines, Hawaiian Airlines, Delta and Etihad (amongst others) Soft expiry (24 months) Lower taxes than Qantas Ability to pool points and Status Credits with family Ability to transfer to KrisFlyer (although transfer rate devalued in January 2019) | Limited partners compared to other programs Carrier Charge for all Virgin Australia and Etihad and some Delta redemptions |
| Qantas Frequent Flyer (for Ascent Premium Card Members only) | Current 15-40% transfer bonus Familiar to many Australia-based travellers Easy to redeem on domestic Qantas flights One of the only programs to access excellent Emirates First and Business Class redemptions Soft expiry (18 months) | Often hard to access international premium cabin redemptions High redemption pricing High taxes and fuel surcharges Frustrating online search tool |
| Etihad Guest | Access to excellent Etihad First and Business Class products Virgin Australia sweet spots | Must call to redeem partner awards Limited partners Hard expiry (24 months) |
| Marriott Bonvoy | Most flexible points currency in the world Bonus for transferring 60,000+ Marriott points (= 25,000+ frequent flyer points) | Myriad of problems after merger with Starwood Preferred Guest last year August 2018 devaluation of Amex-Marriott transfer rate |
| Emirates Skywards | Increased access to Emirates awards than Qantas members Easy-to-use online search and booking tool Same pricing as Qantas for most flights (neither pro nor con) | Limited partners |
| Virgin Atlantic Flying Club | Access to best sweet spot redemption in the world (ANA First Class) Cheap Delta redemptions, both within US and internationally | High taxes and surcharges on Virgin Atlantic flights Limited partners Need to call to book a lot of partner awards |
| THAI Royal Orchid Plus | Part of largest alliance in world (Star Alliance) Cheaper pricing than KrisFlyer—for now | Relatively unknown program in Australia Need to call to book many awards Hard to search for awards on THAI website Major devaluation coming in October 2019—use points beforehand Hard expiry (36 months) |
| Hilton Honors | Access to Hilton properties Mainly for Hilton enthusiasts | Limited hotel footprint Poor transfer rates to frequent flyer programs (unlike Marriott) |
| Malaysia Airlines Enrich | - | Over the past two years, this program has gutted almost all of its value |
| Air New Zealand Airpoints | - | Generally regarded as one of the poorest-value programs in the world |
Example scenarios
Where do you want to travel?
- Within Australia: Velocity or Etihad Guest for Virgin Australia flights; Emirates or Qantas* for Qantas flights
- Europe: Asia Miles (lower pricing) or KrisFlyer (higher pricing)
- Mainland US: Asia Miles or KrisFlyer for travel on Qantas and American Airlines, and United, respectively
- Hawaii: Velocity for travel on Hawaiian Airlines
- Canada: KrisFlyer for travel on Air Canada
- South America: Asia Miles for travel on LATAM or Qantas
- Asia: KrisFlyer or Asia Miles for travel on Singapore Airlines or Cathay Pacific (and partners)
- Japan: Asia Miles for travel on Qantas or Japan Airlines
*For Ascent Premium Card Members only
Which airline do you want to travel with?
- Qantas or Emirates: Emirates or Qantas*
- Virgin Australia: Velocity, Etihad Guest or KrisFlyer
- oneworld airlines: Asia Miles
- Star Alliance airlines: KrisFlyer
Other scenarios
- I want to book Economy Class tickets for my whole family: Velocity or KrisFlyer
- I don’t know what I’ll do with my points over the next three years: Velocity
If you are stuck on what to do, my recommendation is to transfer to Velocity
Summing up
There is no easy answer, as it depends on your points balance and where you want to travel.
However, one simple piece of advice: make sure to transfer your points out to at least one of the programs. If not, c
Also, please please please don’t cash them out for gift cards.
We don’t have any inside information on if there will be any last-minute transfer bonuses offered, so it’s your call whether to transfer now or hold off until closer to the devaluation date.
How are you planning to use your Membership Rewards points? Share in the comments below.
In this guide
This master guide outlines the changes, gives our analysis and will be updated moving forward as we find out new information.
Here is American Express’ official page on the changes.
Transfer bonus offer history
- March 2019: 15-25% bonus to Velocity; upgrade to Velocity Gold/Platinum when Platinum and Centurion Card Members transfer 250,000/500,000 points
- March 2019:50% bonus to Hilton Honors
Why are these changes occurring?
These changes are in response to the challenges to merchants following the Reserve Bank of Australia capping the fees credit card providers can charge merchants. American Express is following most other providers (like Westpac) in devaluing its Membership Rewards program.
These new laws will dramatically reduce the amount of money banks get to fund rewards programs.
And they have. While American Express was not specifically impacted by the RBA changes, the market has shifted. As such, they have made a decision to reduce their merchant fees in order to continue their efforts in driving greater acceptance of their cards.
Here is our summary of the changes coming to American Express cards from 15 April 2019.
Changes to earn and effective earn rates
The changes to the earn rates for all American Express personal cards are shown below but note that the more important changes are those to effective earn rates, which follows this first (quite comprehensive) table.
| Current earn rate | Future earn rate | Change | |
|---|---|---|---|
| Explorer Business Explorer | 2 points per $ on all purchases except Government spend 0.5 points per $ on Government spend | 2 points per $ on all purchases except Government spend 1 point per $ on Government spend | No change on all purchases except Government spend +100% on Government spend |
| Essential | 1 point per $ on all purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government spend 0.5 points per $ on Utilities, Insurance and Telecommunications spend | 1.25 points per $ on all purchases except Government, Utilities, Insurance and Telecommunications spend 1 point per $ on Government spend 1.25 points per $ on Utilities, Insurance and Telecommunications spend | +25% on all purchases except Government, Utilities, Insurance and Telecommunications spend +100% on Government spend +150% on Utilities, Insurance and Telecommunications spend |
| Platinum Edge | 3 points per $ on purchases at supermarkets 2 points per $ on purchases at fuel outlets 1 point per $ on all other purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government, Utilities, Insurance and Telecommunications spend 1 point per $ on overseas purchases | 3 points per $ on purchases at supermarkets 3 points per $ on purchases at fuel outlets 1 point per $ on all other purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government, Utilities, Insurance and Telecommunications spend 1 point per $ on overseas purchases | No change on purchases at supermarkets +50% on purchases at fuel outlets No change all other purchases except Government, Utilities, Insurance and Telecommunications spend No change on Government, Utilities, Insurance and Telecommunications spend No change on overseas purchases |
| Platinum Charge | 3 points per $ on purchases at restaurants 2 points per $ on travel and overseas purchases 1 point per $ on all other purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government spend 0.5 points per $ on Utilities, Insurance and Telecommunications spend | 2.25 points per $ on purchases at restaurants 2.25 points per $ on travel and overseas purchases 2.25 points per $ on all purchases except Government, Utilities, Insurance and Telecommunications spend 1 point per $ on Government spend 2.25 point per $ on Utilities, Insurance and Telecommunications spend | -25% on purchases at restaurants +13% on travel and overseas purchases +125% on all purchases except Government, Utilities, Insurance and Telecommunications spend +100% on Government spend +350% on Utilities, Insurance and Telecommunications spend |
| Qantas Ultimate | 1.5 points per $ on all purchases except on Qantas services and Government spend 2.5 points per $ on Qantas services 0.5 points per $ on Government spend | 1.25 points per $ on all purchases except on Qantas services and Government spend 2.25 points per $ on Qantas services 0.5 points per $ on Government spend | -17% on all purchases except on Qantas services and Government -10% on Qantas services No change on Government spend |
| Qantas Premium | 1.25 points per $ on all purchases except on Qantas services and Government spend 2.25 points per $ on Qantas services 0.5 points per $ on Government spend | 1 point per $ on all purchases except on Qantas services and Government spend 2 points per $ on Qantas services 0.5 points per $ on Government spend | -20% on all purchases except on Qantas services and Government -11% on Qantas services No change on Government spend |
| Qantas Discovery | 1 point per $ on all purchases except on Qantas services and Government spend 2 points per $ on Qantas services 0.5 points per $ on Government spend | 0.75 points per $ on all purchases except on Qantas services and Government spend 1.75 points per $ on Qantas services 0.5 points per $ on Government spend | -25% on all purchases except on Qantas services and Government -13% on Qantas services No change on Government spend |
| Velocity Platinum | 1.5 points per $ on all purchases except on Virgin Australia services and Government spend 2.5 points per $ on Virgin Australia services 0.5 points per $ on Government spend | 1.25 points per $ on all purchases except on Virgin Australia services and Government spend 2.25 points per $ on Virgin Australia services 0.5 points per $ on Government spend | -17% on all purchases except on Virgin Australia services and Government spend -10% on Virgin Australia services No change on Government spend |
| Velocity Escape | 1 point per $ on all purchases except on Virgin Australia services and Government spend 2 points per $ on Virgin Australia services 0.5 points per $ on Government spend | 0.75 points per $ on all purchases except on Virgin Australia services and Government spend 1.75 points per $ on Virgin Australia services 0.5 points per $ on Government spend | -25% on all purchases except on Virgin Australia services and Government spend -13% on Virgin Australia services No change on Government spend |
| Business Gold Business | 1 point per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Government, Utilities and Insurance spend | 1.5 points per $ on all purchases except Government, Utilities and Insurance spend 1 point on Government, Utilities and Insurance spend | +50% on all purchases except Government, Utilities and Insurance spend +100% on Government, Utilities and Insurance spend |
| Business Platinum | 2 points per $ on purchases at restaurants, airlines, accommodation, advertising, courier & freight, computer supplies and foreign currency 1 point per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Utilities and Insurance spend 0.5 points on Government spend | 2.25 points per $ on purchases at restaurants, airlines, accommodation, advertising, courier & freight, computer supplies and foreign currency 2.25 points per $ on all purchases except Government, Utilities and Insurance spend 2.25 points on Utilities and Insurance spend 1 point on Government spend | +12.5% on purchases at restaurants, airlines, accommodation, advertising, courier & freight, computer supplies and foreign currency +125% on all purchases except Government, Utilities and Insurance spend +350% on Utilities and Insurance spend +100% on Government spend |
| Business Accelerator no longer available | 2 points per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Utilities and Insurance spend 0.5 points on Government spend | 2 points per $ on all purchases except Government, Utilities and Insurance spend 2 points on Utilities and Insurance spend 1 point on Government spend | No change on all purchases except Government, Utilities and Insurance spend +300% on Utilities and Insurance spend +100% on Government spend |
The new effective earn rates are shown below. Note that these are based on transfers to Velocity, KrisFlyer and Asia Miles.
| Current effective earn rate | Future effective earn rate | Change | |
|---|---|---|---|
| Explorer Business Explorer | 1.5 points per $ on all purchases except Government spend 0.375 points per $ on Government spend | 1 point per $ on all purchases except Government spend 0.5 points per $ on Government spend | -33% on all purchases except Government spend +33% on Government spend |
| Essential | 0.75 points per $ on all purchases except Government, Utilities, Insurance and Telecommunications spend 0.375 points per $ on Government spend 0.375 points per $ on Utilities, Insurance and Telecommunications spend | 0.625 points per $ on all purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government spend 0.625 points per $ on Utilities, Insurance and Telecommunications spend | -17% on all purchases except Government, Utilities, Insurance and Telecommunications spend +33% on Government spend +67% on Utilities, Insurance and Telecommunications spend |
| Platinum Edge | 3 points per $ on purchases at supermarkets 2 points per $ on purchases at fuel outlets 1 point per $ on all other purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government, Utilities, Insurance and Telecommunications spend 1 point per $ on overseas purchases | 1.5 points per $ on purchases at supermarkets 1.5 points per $ on purchases at fuel outlets 0.5 points per $ on all other purchases except Government, Utilities, Insurance and Telecommunications spend 0.25 points per $ on Government, Utilities, Insurance and Telecommunications spend 0.5 point per $ on overseas purchases | -50% on purchases at supermarkets -25% on purchases at fuel outlets -50% all other purchases except Government, Utilities, Insurance and Telecommunications spend -50% on Government, Utilities, Insurance and Telecommunications spend -50% on overseas purchases |
| Platinum Charge | 3 points per $ on purchases at restaurants 2 points per $ on travel and overseas purchases 1 point per $ on all other purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 points per $ on Government spend 0.5 points per $ on Utilities, Insurance and Telecommunications spend | 1.125 points per $ on purchases at restaurants 1.125 points per $ on travel and overseas purchases 1.125 points per $ on all purchases except Government, Utilities, Insurance and Telecommunications spend 0.5 point per $ on Government spend 1.25 point per $ on Utilities, Insurance and Telecommunications spend | -63% on purchases at restaurants -44% on travel and overseas purchases +13% on all purchases except Government, Utilities, Insurance and Telecommunications spend No change on Government spend +150% on Utilities, Insurance and Telecommunications spend |
| Qantas Ultimate | 1.5 points per $1 on all purchases except on Qantas services and Government spend 2.5 points per $1 on Qantas services 0.5 points per $1 on Government spend | 1.25 points per $ on all purchases except on Qantas services and Government spend 2.25 points per $ on Qantas services 0.5 points per $ on Government spend | -17% on all purchases except on Qantas services and Government -10% on Qantas services No change on Government spend |
| Qantas Premium | 1.25 points per $1 on all purchases except on Qantas services and Government spend 2.25 points per $1 on Qantas services 0.5 points per $1 on Government spend | 1 point per $ on all purchases except on Qantas services and Government spend 2 points per $ on Qantas services 0.5 points per $ on Government spend | -20% on all purchases except on Qantas services and Government -11% on Qantas services No change on Government spend |
| Qantas Discovery | 1 point per $1 on all purchases except on Qantas services and Government spend 2 points per $1 on Qantas services 0.5 points per $1 on Government spend | 0.75 points per $ on all purchases except on Qantas services and Government spend 1.75 points per $ on Qantas services 0.5 points per $ on Government spend | -25% on all purchases except on Qantas services and Government -13% on Qantas services No change on Government spend |
| Velocity Platinum | 1.5 points per $1 on all purchases except on Virgin Australia services and Government spend 2.5 points per $1 on Virgin Australia services 0.5 points per $1 on Government spend | 1.25 points per $ on all purchases except on Virgin Australia services and Government spend 2.25 points per $ on Virgin Australia services 0.5 points per $ on Government spend | -17% on all purchases except on Virgin Australia services and Government spend -10% on Virgin Australia services No change on Government spend |
| Velocity Escape | 1 point per $1 on all purchases except on Virgin Australia services and Government spend 2 points per $1 on Virgin Australia services 0.5 points per $1 on Government spend | 0.75 points per $ on all purchases except on Virgin Australia services and Government spend 1.75 points per $ on Virgin Australia services 0.5 points per $ on Government spend | -25% on all purchases except on Virgin Australia services and Government spend -13% on Virgin Australia services No change on Government spend |
| Business Gold Business | 1 point per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Government, Utilities and Insurance spend | 0.75 points per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Government, Utilities and Insurance spend | -25% on all purchases except Government, Utilities and Insurance spend No change on Government, Utilities and Insurance spend |
| Business Platinum | 2 points per $ on purchases at restaurants, airlines, accommodation, advertising, courier & freight, computer supplies and foreign currency 1 point per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Utilities and Insurance spend 0.5 points on Government spend | 1.125 points per $ on purchases at restaurants, airlines, accommodation, advertising, courier & freight, computer supplies and foreign currency 1.125 points per $ on all purchases except Government, Utilities and Insurance spend 1.125 points on Utilities and Insurance spend 0.5 points on Government spend | -43.8% on purchases at restaurants, airlines, accommodation, advertising, courier & freight, computer supplies and foreign currency +12.5% on all purchases except Government, Utilities and Insurance spend +125% on Utilities and Insurance spend No change on Government spend |
| Business Accelerator no longer available | 2 points per $ on all purchases except Government, Utilities and Insurance spend 0.5 points on Utilities and Insurance spend 0.5 points on Government spend | 1 point per $ on all purchases except Government, Utilities and Insurance spend 1 point on Utilities and Insurance spend 0.5 points on Government spend | -50% on all purchases except Government, Utilities and Insurance spend +100% on Utilities and Insurance spend No change on Government spend |
Changes to card earn rates: in short
Qantas and Velocity co-branded American Express cards will be less impacted by these changes than their American Express Membership Rewards-earning counterparts.
For example, the Qantas Ultimate or Velocity Platinum cards will earn you 1.25 points per $ on most purchases, versus 1.125 points per $ spent on the Platinum Charge and 1 point per $ on the Explorer.
While the airline co-branded cards will experience only slight reductions in their effective earn rates, the Membership Rewards cards, especially higher-earning variants such as the Platinum and Platinum Edge cards, will experience further reductions. The most notable are restaurant, travel and overseas purchases with the Platinum Charge card, and most purchases through the Platinum Edge.
Therefore, your decision around card choice should be influenced by your spending habits. For example, if you are a Platinum Card Member who predominantly uses your card for purchases at restaurants and overseas, then you may wish to consider switching to an airline co-branded card that will earn you a slightly higher earn rate on these purchases.
Changes to transfer rates to Membership Rewards program partners
From 15 April 2019, American Express Membership Rewards transfers to most partners are also changing. American Express will also consolidate the different varieties of Membership Rewards points, including Ascent, Ascent Premium and Gateway, into one unified points currency.
Here are the figures for Ascent:
| Partner | Current transfer rate | Future transfer rate | Change |
|---|---|---|---|
| Most airline programs | 1:1 | 2:1 | -50% |
| Air New Zealand Airpoints | 100:1 | 200:1 | -50% |
| Emirates Skywards | 1:1 (Ascent Premium) 4:3 (Ascent) | 2:1 | -50% -34% |
| Hilton Honors | 1:1 | 2:1 | -50% |
| Marriott Rewards-SPG | 3:2 | 3:2 | No change |
and Gateway cards:
| Partner | Current transfer rate | Future transfer rate | Change |
|---|---|---|---|
| Most airline programs | 4:3 | 2:1 | -34% |
| Air New Zealand Airpoints | 400:3 | 200:1 | -34% |
| Hilton Honors | 1:1 | 2:1 | -50% |
| Marriott Rewards-SPG | 3:2 | 3:2 | No change |
Changes to redemptions: in short
You can see that, with the exception of Marriott Rewards-Starwood Preferred Guest, which had its transfer rate devalued in August, all other partners will have their transfer rates reduced by between one-third and one-half.
Those holding cards that earn into the Ascent variety of Membership Rewards, like Platinum Charge and Platinum Edge Card Members, are harder hit than those who hold Gateway-earning cards, like the Explorer and Essential. Note, however, that some Platinum Charge and Centurion Card Members have received an offer to double their points balance when the devaluation kicks in, thereby maintaining the value of their points. Other Card Members have not received these offers and are not eligible to take advantage of them, even when calling Amex.
If you want to use your Membership Rewards points at a fixed value for bookings through American Express Travel, you will see each point worth 0.5 cents instead of the current redemption rate of 1/0.75 cents per point for Ascent/Gateway.
Frequently Asked Questions
Why are these changes occurring?
Due to RBA changes in 2017, the payment landscape changed significantly in Australia, which resulted in a reduction in the merchant fees that were being charged by competitors of American Express. To ensure that American Express remains competitive, they have had to also reduce their merchant fees. This has resulted in more merchants accepting American Express cards.
Will sign-up bonuses be reduced moving forward?
There are no indications that sign-up bonuses will decrease anytime soon, especially given a headline promotion of, for example, 100,000 Membership Rewards points on the American Express Explorer will only transfer to 50,000 airline points moving forward instead of the current 75,000 points.
Are other benefits such as travel credits, lounge access, complimentary flights or insurance changing?
All other benefits are remaining the same, however, some small benefits will be added, which Point Hacks will cover in future articles. Also, Platinum Card Members will see the removal of points caps.
What is happening to David Jones-branded cards?
If you are opted into earning Qantas Points on your card, then your effective earn rate is dropping by one-third across the board.
However, if you are earning Membership Rewards points (of the David Jones variety), then there is no change. Your earn rate is staying the same and the transfer rate is already set at what the Ascent and Gateway varieties are moving to, which is 2:1.
Our advice
On earn
Overall, these changes are negative.
Many of you are likely wondering what you should do with the American Express cards you currently hold. For those who are happily holding Qantas or Velocity co-branded cards, in our opinion, these changes are not significant enough to warrant any real action, given they have come through relatively unscathed.
Airline co-branded cards like the Qantas American Express Ultimate will have higher headline earn rates than Membership Rewards-earning cards but will lock you into one airline currency
However, for those holding American Express Membership Rewards-earning cards, your decision is going to revolve around how much value you place on the flexibility of the American Express Membership Rewards program versus the ability to earn a higher earn rate with an airline co-branded card.
The decision is far from clear and will be determined by individual preference and circumstance. However, a good rule of thumb is: if you value flexibility in choosing which frequent flyer program to transfer your reward points to over points earn, then you should consider holding onto your current card/s. If points earn is your key objective though, then you could consider switching to an airline co-branded card but only if you are willing to commit to earning solely through Qantas or Velocity Frequent Flyer.
On redemption
If you currently have a large balance of Membership Rewards points, you may want to hold off. American Express has given five months’ notice and there may be transfer bonuses introduced in the meantime, so you would not want to miss out on them by speculatively transferring your points out to a partner program/s.
There is no need to do anything about the cards in your wallet right now. If eventually you are considering the cards you have in your wallet in light of these changes, it may be worth giving American Express a call first to see if there is a more appropriate card for you based on your spending patterns.
What is your take on these changes? How will they affect your points-earning and redemption strategy moving into 2019?
Co-written with Daniel Sciberras.
Supplementary images courtesy American Express.
Does anyone have any insight?
We’ve shunted points from Amex to Skywards( and prior to that from Citibank) and have found Emirates excellent for travel to European destinations . Had 6 return Business Class trips in the last 7 years, and no issues with availability of reward seats in European Summer or Winter . Given they fly to so many European cities from their Middle Eastern hub , they seem an ideal option for Australian travellers
So many of the other reward programs seem to have bugger all availability for points seats.
Going to take advantage of:
1. KrisFlyer Spontaneous Escapes.
2. RTW SQ point flights.
Can I presume with RTW that if you are flexible with the dates and the destinations, then this would be easy as to book either 3 months or 9 months out. Eg would go to Seoul instead of Tokyo, Toronto instead of Vancouver, Lima instead of Rio, Paris instead of Johannesburg…. as some quick examples, so substitute any onward airport…. eg Lets just go somewhere with availability??
Got the run around with Velocity having to convince them that a) promotion existed then b) I was eligible, then “wait a week”, latest update is they say the conditions stated the status upgrade was effective four weeks after the end of the promotion so wait until April 16. Wish I’d taken a screen shot of the terms and conditions at the time of redeeming.
I have an AMEX Platinum Edge card and want to maximise my points (to transfer to Velocity) before to 15/3 bonus ends and the April devaluation.
Is anyone considering purchasing supermarket giftcards or any other strategies before 15/3?
Is it worth the hassle?
Thanks
That could be a good way to earn those points. What I generally do if I’m making a large supermarket gift card purchase is to choose the e-gift card option, as I have always been worried about losing the physical cards.
Whether its worth the hassle will be determined on how much value you place on those American Express points. If you haven’t already read it, the following guide might be able to assist in this regard.
https://www.pointhacks.com.au/rewards-points-valuations/
Now, the ‘spending power’ of Velocity points is already less than that of Amex points (1000 Amex pts = $7.41 prior to 15th April, reducing to $5 after then. But 1000 Velocity pts = approx. $5 already, depending on what you spend them on).
So if I took up the offer and transferred 100,000 Amex points ($741 spending power) today, then my Velocity spending power tomorrow would only be $431.25 including the 15% bonus!
It seems to me that the logical thing for me to do would NOT be to take up the transfer offer, but to spend all my Amex points prior to 15th April, before they are devalued. Have I worked this out correctly?
Facts to consider:
1. Current Amex offer – 20% bonus with Velocity transfer or 50% bonus with Hilton Honors.
2. Amex frequent flyer partner programs –
a. Air New Zealand Air Points – 400 Amex points = 3 airpoints
b. Asia Miles, Emirates Skywards, Ethihad Guest Airways, Malaysia Airline Enrich, Singapore Airline Kris Flyer, Thai Airways Royal Orchid Plus and Velocity Frequent Flyer – all of them – Amex points = 3 points.
c. Qantas Frequent Flyer – not a Amex partner program
3. Other redemptions options – Hello World, gift card etc.
4. Likely to travel within 3 years. No travel plan yet but destinations considered – Asia, Europe and US. Travelling with wife.
5. Expiration of points and activity to keep points active etc.
My thoughts:
1. Not considering Hilton Honors.
2. Frequent flyer program – best value. Therefore – not considering other redemption options such as gift card etc.
3. Thinking of transfer to Velocity and making use of the bonus. But I read – Kris Flyer better dollar value per point compared to Velocity.
Now – Velocity to Kris conversion: 1.55 Velocity to 1 Kris; whereas Amex to Kris is the same as Kris i.e. 4 Amex points = 3 Velocity or Kris points. So in future – transfer from Velocity to Kris – worth less than transferring from Amex to Kris now.
4. Have read about other Amex frequent flyer partner programs but not enough understanding to decide or consider.
Confused because too many issues to consider. All advice and suggestions are welcome. Thank you in advance to members of community and moderators.
P.S. A KrisFlyer bonus is still not out of the question. Maybe it will come in March or April but I can’t say that with 100% certainty (I don’t have any insider info).
Please see my response in the other posts where you’ve asked this question.
Thanks.
Sorry if it was confusing but my other question was in relation to comparing this card to ANZ. This question is whether if I get the AMEX Explorer now.. will I get more points than if I waited for the changes?
It seems to me that if I wait I will get less velocity points with not much benefit?
‘Depending on the number of Membership Rewards points you transfer to Velocity Frequent Flyer by 15 March 2019, you’ll receive a 15-25% Velocity bonus. Conditions apply.”
I hold an explorer card, with a continues 120k+ yearly spent for the past couple of years, was told I am not qualified for this offer. so I think they value the “valued customer” by which kind of card you hold, not based on how much you spent unfortunately.
In regards to this offer, Point Hacks recommends to contact American Express directly to confirm your eligibility.
I’m wondering whether anybody has tried contacting AMEX to ask for some bonus points before the MR changes come into effect? I know that Ascent Premium customers are having their points balance doubled but is there any hope for a loyal platinum edge or explorer customer?
Any Idea on whats hapening to Westapac’s Amex Altitude Black cards ?
I have an Explorer , Explorer Business and a Platinum edge
looking to get better than 1:1 moving fowaard
With the new (reduced) rate, you actually earn Velocity points through visa cards like ANZ Rewards Black (Visa), because you get 2 points per $1, which convert at 50% PLUS a 30% bonus if you convert during their annual “bonus redemption” time.
i.e. a Visa that is accepted EVERYWHERE earns you 1.3 vs. 1.25 for Amex.
*Only applies to first $5k of monthly spend, annual fee is the same, Amex also gets you 1 free flight,
https://www.americanexpress.com/au/credit-cards/membership-benefits/rewards/rewardschanges/platinumedge/
Thank you for bringing this to our attention. I have updated the table accordingly.
I have expressed my disappointment to AMEX given the charge card fee has just increased significantly. Their reply was waiting for the letter which offered me double rewards points to protect what I had already earnt. I’m still not satisfied by this.
It would have sufficed me if AMEX kept the MR points for the charge card at 1:1 for QANTAS but a decrease by 50% is really disappointing for a high-end card.
Come to my renewal date for the QANTAS Ultimate, I will cancel the card in the hopes that QANTAS continue to offer bonus transfer points from time to time on the charge card.
If they do, I hope this means that the value of the point to point transfer is greater than that of the QANTAS ultimate.
Any direct earn from QANTAS going on my ANZ Black or QANTAS Premier card.
$495 for 0.25 of a point difference is not great, even with the travel credit.
This is contrary to what their website says for the Platinum charge card. Seems you need to be a valued member to get this deal. This makes me happy, but if your letter doesn’t include this clause, then I’d be calling Amex and asking them why you aren’t valued and if they don’t agree to adjust your balance you can make a decision about how much you value them.
As a worst case scenario is it possible to extend the life of the points by say transferring to velocity (which I assume expires in 3 years) and then before that expiry, transfer again to Krisflyer to get another 3 years?
Thanks
I like to use Asia miles and its currently 1:1. The 50% devaluation is horrible!
I think I am better off moving the points in April and just making sure I use them in the 3 years allocated with Asia Miles.
Asia miles don’t normally ever have points transfer bonuses
Any thoughts or advice?
Worth trying to get the Explorer asap with the new 100k points bonus and transferring to Emirates (airline of choice currently) before the new changes come in?
Anything to suggest they would block that
Amex are damaging their advantage here.
While they might have to be more “competitive” moving forward the points in my account were earned using the existing arrangements yet will be halved in value by this change. The accountants at Amex must be jumping with joy at the thought of cutting Amex’s points liability in half…
Hoping Pointhacks does a new article on this.
Qantas also has 15-40% bonus on transfers until end Nov so might be worth people on Ascent Premium transferring now – the risk will be closer to the change everyone will be transferring points so there might not be an incentive for the airlines to offer a bonus at that time.
Also agree that foreign transactions shouldn’t be earning less – there is no impact from the RBA or reduced merchant fees for those!
As a Platinum cardholder with primarily travel spend I’m going to lose 44% points net (earn and transfer) against an annual fee increase of 21% to a mega $1450.
A key point missed thus far by this and the AusBT article – one of the key benefits of AMEX generic cards, the ability to purchase points at $25 per 1000, becomes economically unfeasible, since now the net cost of purchase would be $50 per 1000.
Official communication still not received from AMEX.
Foreign transactions already incur fee so the argument for devaluation because of Australian transaction fee limits doesn’t apply.
Rang AMEX to report my disappointment.
Highly recommend others do likewise!