Best Points/Dollar Ratio for VISA/MC and Spending Strategies ?

I was looking at the best cards to earn the maximum points and not having to pay through the nose for annual fees and keeping in mind other privileges etc (insurances, free flights, etc). Of course this is subjective and depends on one's spending habits and assumes groceries and petrol are the major expenses.

QFF Amex

The David Jones Amex Card gives 2.25 points per dollar at major supermarkets and petrol stations for a modest $99 annual fee. They have a signup bonus of 22,500 QFF points currently.

Velocity Amex

The Amex Platinum Edge Card gives 3 reward points at major supermarkets and 2 reward points at petrol stations (1 reward point = 1 velocity point) hence 3 or 2 velocity points per dollar. The annual fee is not bad at $195 p.a but this does include a free return airfare every year so it could be worth it + it has the usual suite of platinum insurances.

I'm currently not spending enough on credit cards to justify a card with annual fees etc and have just applied for an ANZ Rewards Platinum (1.33 velocity points per dollar and fee free for the first year) but has dismal rewards on the Visa. I am not eligible for the Citibank Signature card (1 velocity point for a dollar, fee free for life is good though).

I was wondering which other cards there have decent rewards a Visa/MC ?

Spending Strategies

1) How do you use utlise your arsenal of cards ? Is this the 'best' way

Purchases < 100 + Paywave available - ING (since that 2% is better than the points redemption - via gift cards at least)
Other purchases or no paywave - Rewards card
Overseas purchases and withdrawals - Citibank Plus Debit Card

2) For cards that give the maximum points for spends in supermarkets, can I buy say JB Hifi gift cards from Woolies/Coles to get the highest tier of rewards since using the card at JB Hifi directly won't give me the maximum points ? Are gift cards included at supermarkets included ?

I'm relatively new to credit cards and hoping to learn the best ways ! Thank you !

Comments

  • +1

    I'm not too up to date on the best rewards currently, to compare the points though, you will need to select a common way to translate each reward programs points.
    For example, my flybuys are worth 0.5% to me and my QFF are worth 0.67% to me (based on redemption via gift card as you highlighted) So when I use my Coles Mastercard (2 flybuys/$) I take 1%. When I use my ANZ FF Black AMEX (1.5 QFF / $) I take 1%. So regardless of points, same reward, except it's harder to use an AMEX everywhere.

    If big savings on groceries and petrol are what you want, for Woolies at least, get an entertainment book, use the online ordering for eWishgiftcards (take about 4-10 hours to arrive in your inbox), to save your 5%. Pay using your rewards card so you still get the points (Pretty sure they take AMEX). When you shop at WOW group, use your EDR card to collect a few extra QFF points.

    Also, buying a jb-hifi gift card for example does get EDR rewards points, but WOW group ones do not (as they are loaded with money, not purchased as such) if that's what you meant by your question about gift cards.

    • Thanks for the reply TheG1000 ! Unfortunately, there is no EDR down here in Tassie, they have some other rewards scheme here with Woolies (FSC or something like that).

      In regards to the gift card question, what I meant to ask was that if I use my Amex card at Woolies to buy a $100 gift card (for ex., a JB HiFi gift card), it is possible to get 300 points (assuming 3 points to a dollar) since it is 3 points to a dollar right ? This is to maximize the points I earn, where using it at JB HiFi directly would only give 100 points (1 point to the dollar). I was wondering if purchases towards gift cards would count for points as an eligible purchase in a supermarket.

  • AMEX platinum edge is great for groceries and fuel as you say. Have a look at the NAB velocity platinum card too, earns 1.5 points on its AMEX on everything (utilities etc included) so overall is a decent earner - the VISA card you get with it is only 0.5 points though, so I put all my non Amex spend on Virgin money high flyer card (1.25 points). Virgin money is a hefty annual fee though, so prob not what you're after

    Be careful with David Jones rewards points - although it's a AMEX, pretty sure in the fine print its rewards program is a separate "David Jones Membership rewards" not the standard Amex "membership rewards" and the points translate to flyer program's at an inferior rate to standard AMEX

    Your spend strategy appears well thought out - also keep an eye out for bonus point offered from some retailers (often 3 points etc)

    • Thanks Crazy Diamond for the confirmation on the spending strategy and will keep an eye out on bonus points ! [btw, Qantas Cash are doing 5 QFF for each dollar when you get gift cards off their store].

      Just read the David Jones rewards points site and it says 1 Reward Point = 1 Membership Reward point and 1 Reward Point = 0.75 QFF Point, so the 2.25 QFF points per dollars still holds :)

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