Complete Guide To Flexible Bank Rewards Programs In Australia

Flexible bank rewards programs are one of the most powerful ways to earn and use credit card points in Australia. Unlike co-branded credit cards that earn Qantas Points or Velocity Points directly, flexible rewards programs let you earn points in the bank's own loyalty scheme.

There’s a reason that credit card rewards programs like Amex Membership Rewards, Westpac Altitude, and ANZ Rewards are so popular. They give cardholders flexibility over where their points are redeemed. Rather than locking yourself into a single frequent flyer program, you can build a balance of bank points and transfer them to an airline later, once you've found the perfect reward seat.

The best flexible rewards programs in Australia offer transfers to multiple airline loyalty programs. Depending on the bank, you may be able to transfer credit card points to Qantas Frequent Flyer, Velocity Frequent Flyer, Singapore Airlines KrisFlyer, Cathay Asia Miles, and Emirates Skywards.

In this guide, we've compared Australia's major flexible rewards programs, including transfer rates, airline partners and a complete airline transfer matrix to help you find the best flexible rewards program.

What Are Flexible Reward Programs?

When you go to sign up for a rewards credit card, you’ll find two varieties: co-branded airline frequent flyer cards and flexible rewards cards.

Co-branded cards are simple enough, with every dollar you spend transferring straight into the specified airline frequent flyer program (eg. 1 Velocity point per $1 spent). On the other hand, the flexible rewards system allows you to earn points in a separate currency and then transfer these points elsewhere, such as an airline frequent flyer program. You can also use bank rewards points for other redemptions, such as gift cards and reward store products, although redemptions offer far less value.

Major Flexible Rewards Programs In Australia

Australia is home to a number of flexible rewards programs offered on credit cards. The Major players are;

• American Express Membership Rewards
• CommBank Rewards
• NAB Rewards
• ANZ Rewards
• Westpac Altitude Rewards
• Amplify Rewards (St. George, Bank of Melbourne, Bank SA)
• Virgin Money Rewards
• Suncorp Rewards
• HSBC Rewards
• My Card (previously Citi Rewards)

Each program offers a different mix of transfer partners, earn rates, and redemption options.

Bank Rewards Points Transfer Rates Compared

When selecting the best card for your needs, it is important to consider the transfer rate of competing programs, as well as the earn rate for that card. These rates will vary between programs and partners, with some offering far more favourable conversion ratios than others. For example, a 2:1 Amex to Velocity transfer ratio would mean every 2 Membership Rewards Points gets you 1 Velocity Point.

The table below provides a comprehensive comparison of the transfer rates offered by major Australian credit card rewards programs to frequent flyer, hotel, and supermarket partners.

*Amex Platinum cardholders only.

^HSBC Premier World cardholders only.

~Or 2:1 for MyCard Premier & Prestige cardholders.

Why Are Qantas Transfer Options So Limited?

Back in 2009, Qantas Frequent Flyer axed its relationship with most flexible rewards programs. It was a decision made to force cardholders to sign up for Qantas-only credit cards if they wished to earn Qantas Points.

The exception here is the high-end American Express Platinum and Westpac Altitude Business, which still offer transfers to Qantas Frequent Flyer. Unless you’re looking at one of these premium cards, if you’re after Qantas Points, a co-branded card is the easiest way to do it.

This would restrict you to the Qantas ecosystem, which as readers would know, can tend to offer extremely limited Classic Reward availability for Business and First Class.

Best Flexible Rewards Credit Cards

What About Non-travel Redemptions?

While most Flight Hacks readers would be interested in frequent flyer points, flexible rewards programs also offer non-travel-related redemptions. It is important to do your homework here, as these redemptions usually represent poor value.

Non-travel redemption options can be split into three main categories;

• Gift cards - gift cards for a collection of retail stores
• Entertainment - Experiences such as movie and theme park tickets
• Retail products - Products from the latest iPhone to chainsaws!

Advantages Of Flexible Reward Programs

Funnily enough, the biggest advantage here is flexibility! Here’s a few advantages to earning flexible rewards points:

• Earn points on your daily spend without being locked into a specific airline and relying on their award seat inventory.
• Ability to research which program offers the best redemption price and has reward seat availability for your route and dates, before making a transfer.
• If one frequent flyer scheme devalues, your points remain safe until you're ready to transfer.
• Regular promotions with an average 10-30% bonus points when transferring to certain partners.

Disadvantages Of Flexible Reward Programs

Flexible reward programs can add complexity to travel hacking, but there aren’t too many disadvantages:

• Genuinely speaking, flexible rewards credit cards have lower signup bonuses and earn rates, once you factor in a transfer.
• You might spend more time working out which partner transfer is best.
• Transfers aren’t always instant, which can be risky if award availability disappears before your transfer completes.

Summing Up

For travellers who value choice, flexible bank rewards programs are a no-brainer. They remain one of the most powerful ways to earn and redeem credit card points in Australia - mostly due to the huge flexibility gained from access to multiple airline loyalty schemes.

Rather than locking yourself into a single airline loyalty program, you can build a balance of bank points and decide later where to transfer them. That freedom can be invaluable when searching for reward seats, as you're not locked into one airline's limited availability.

While bank rewards programs can be more complex than airline-specific credit cards, the additional flexibility and access to multiple airline partners often outweigh the extra effort.