Qantas is rejigging the points earning rate for its popular Qantas Cash travel card.
The Qantas Cash travel card is your Qantas Frequent Flyer membership card that now includes a handy prepaid debit Mastercard facility.
The card is used widely by travellers, as well as Australians who want to earn points for everyday spending when paying with a debit card rather than a credit card.
To date, purchases overseas have earned 1 Qantas Point per $1, while the earn rate for shopping in Australia was 0.5 Qantas Points per $1.
The good news is that, from 1 May 2017, the earn rate will increase for overseas purchases, going up by 50 per cent to 1.5 Qantas Points per $1. This applies to spending outside Australia and on online shopping in a foreign currency.
Unfortunately, from 1 July 2017, the earn rate for domestic purchases will halve – going down to just 0.25 Qantas Points per $1 for all spending in Australian dollars.
This is yet another consequence of new laws regarding interchange fees, which come into effect on 1 July 2017. The same reforms have caused credit card points earning rates to be slashed. As with credit cards, the new laws apply to debit card transactions in Australia only.
It’s nice to see Qantas increase the points earning rate for overseas purchases rather than just slash the rate in Australia, as they’re being forced to do.
While the reduction in points for domestic spending is disappointing, the Qantas Cash card is still a great option for people who don’t want to (or can’t) use a higher-earning credit card for purchases.
We haven’t heard about any changes to Virgin Australia’s travel card, yet. I’m sure an announcement is coming soon.