Guide To Cashback and Gift Cards – Rewards Programs

Cash back rewards on your credit card means you can redeem your points for almost everything.

Some of the most popular reward program features is the cash back. This includes vouchers or credit that you can redeem your reward points for. One of the biggest advantages of cash back rewards is that you can buy your own rewards from your favourite retailers - great for those who don’t have time to browse through rewards and catalogues.

Comparison: Credit cards with cash gift cards as part of their rewards program

Rates last updated October 22nd, 2017
Name Product Bonus Points Rewards Points per $ spent (VISA/MC) Rewards Points per $ spent (AMEX) Purchase rate (p.a.) Annual fee Product Description
HSBC Platinum Credit Card
1
0
19.99% p.a.
$99 p.a.
Earn 1 Reward Point per $1 of eligible spend and receive complimentary travel and purchase protection insurances.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
60,000 bonus points
0.66
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus Velocity Points in the first 3 months on eligible spend and enjoy a discounted annual fee of $64 for the first year.
Virgin Australia Velocity High Flyer Card - 80k Bonus Points offer
80,000 bonus points
1
20.74% p.a.
$289 p.a.
Take off sooner with up to 1 Velocity Point per $1 spent and earn up to 80,000 bonus Velocity Points. Plus, complimentary travel insurance.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0.66
0% p.a. for 12 months (reverts to 20.74% p.a.)
$129 p.a.
Save with 0% p.a. on purchases for 12 months. Plus, up to 0.66 Velocity Points per $1 spent.
HSBC Platinum Qantas Credit Card
60,000 bonus points
1
19.99% p.a.
$199 p.a.
Receive 60,000 bonus Qantas Points when you meet the spend requirement and earn up to 1 Qantas Point per $1 spent.
Westpac Altitude Black - 100k Bonus Points
100,000 bonus points
1.25
2.5
20.24% p.a.
$195 p.a. annual fee for the first year ($395 p.a. thereafter)
Earn 20,000 points on approval and an additional 80,000 bonus Altitude Points when you meet the spend requirement. Ends 26 October 2017.
American Express Platinum Business Card
120,000 bonus points
0
1
$1,500 p.a.
Enjoy a platinum business concierge, complimentary Virgin Lounge access, worldwide travel insurance and luxury hotel benefits.
Westpac Altitude Black - Altitude Qantas 100k Bonus Points
100,000 bonus points
0.625
1.25
20.24% p.a.
$195 p.a. annual fee for the first year ($395 p.a. thereafter)
Earn 20,000 points on approval and an additional 80,000 bonus Qantas Points when you meet the spend requirement. Ends 26 October 2017.
American Express Platinum Card
80,000 bonus points
1
$1,200 p.a.
Receive an annual $300 Platinum Travel Credit, membership to an elite tier of partner programs and access to more than 1,000 VIP lounges.
NAB flybuys Rewards Card
1
19.99% p.a.
$95 p.a.
Earn 1 flybuys point per $1 spent on everyday purchases and receive 7 complimentary insurance covers.

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Citibank Plus Everyday Account

If you would like to get cashback on your everyday purchases when using Paywave, then you should consider the Citibank Plus Everyday account

Rates last updated October 22nd, 2017
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
St.George Complete Freedom Account
10% cash back on online gaming purchases until 30 September limited to a spend of $200 (other conditions apply)
Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 fee applies. Unlimited free withdrawals at St.George, Westpac and BankSA ATMs. Go to site More
Bankwest Easy Transaction Account
2% cash back (up to $50 cash back per month until 31 August) on tap & go purchases (minimum of five payments, other conditions apply)
Mastercard $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $6 monthly fee applies. Unlimited free withdrawals at CommBank, NAB, ANZ, Westpac, St.George, Bank of Melbourne and BankSA ATMs. Go to site More
St.George Complete Freedom Student Account
10% cash back on online gaming purchases until 30 September limited to a spend of $200 (other conditions apply)
Visa $0 $2,000 $0 account keeping fee for students. Unlimited Free withdrawals at St.George, Bank of Melbourne, BankSA and Westpac ATMs. Go to site More

Types of cash back rewards programs

There are three major types of cash rewards programs:

  • Cash back on application. This is when you receive a gift voucher for being approved for an eligible credit card. Usually there are terms and conditions so make sure you read the fine print to be eligible.
  • Cash back as part of their rewards program. Points based programs allow the cardholder to save up all the points they want, which they will then redeem for cash which can be credited to the account to pay annual fees, charges or pay down their balances.
  • Store vouchers as part of their rewards program. There are reward points programs which allow you to redeem your points for shopping vouchers and gift cards. You can save all the points you want and redeem them for gift cards to your favourite retailers, allowing you to literally choose your own reward for spending money using your credit card.

Popularity of cash back reward credit cards

Cash back credit cards have proven to be very popular because of their simplicity. These rewards provide you with the opportunity for redeeming reward points for vouchers that are easy to use, or even cash credited straight to your account which you can use towards the annual fee.

These type of rewards are great for those who don’t have time or the patience of looking for a worthwhile reward. It’s also incredibly useful when you want to use your rewards for everyday spending, as the rewards are nearly as good as cash.

Comparison of credit cards with cashback offer

Rates last updated October 22nd, 2017
Name Product Bonus Points Rewards Points per $ spent (VISA/MC) Rewards Points per $ spent (AMEX) Purchase rate (p.a.) Annual fee Product Description
Virgin Money Low Rate Credit Card
0
0
11.99% p.a.
$49 p.a.
Receive a discounted annual fee, $100 cashback when you meet the spend requirement and up to 44 days interest-free on purchases.
American Express Essential®  Credit Card
1
14.99% p.a.
$0 p.a.
Receive a $50 credit when you apply online, are approved and spend $750 on your new card within the first 3 months of card membership.
ANZ Low Rate
0
0
12.49% p.a.
$58 p.a.
Receive a $100 credit back to your new ANZ Low Rate Credit Card when you spend $500 on eligible purchases in the first 60 days from card approval.
Citi Rewards Classic Credit Card
1
0
20.99% p.a.
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Receive up to 5% cashback on all retail purchases, up to $1,000 in your first 90 days from card approval (capped at $50).
ANZ Low Rate Platinum
11.49% p.a.
$99 p.a.
Enjoy platinum benefits with exclusive discounts, complimentary travel and purchase insurances and a 24/7 personal concierge.
Citi Simplicity Card
0
0
19.99% p.a.
$0 p.a.
Earn 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from card approval.
Westpac Low Rate Card
0
0
13.49% p.a.
$59 p.a.
Choose to receive $200 cashback when you spend $400 on eligible purchases within 90 days of card approval.

Compare up to 4 providers

How much is a cashback worth?

To truly understand how much your cash back rewards are worth, we crunched the numbers on two credit cards.

Case study*

Title

We compared the Citi Reward Signature credit card with the American Express Platinum Edge credit card to see which card will return more value for cash back rewards. While the American Express Platinum Edge is clearly a winner, it’s important to remember that American Express generally has a higher points earning ratio compared to Mastercard or Visa. Citi credit cards are eligible for their fine dining program where you can get a free bottle of wine every time you dine at eligible restaurants.

Citi Reward credit card - signature cardAmerican Express Platinum Edge credit card
Annual fee$199$195
Annual spend$24,000$24,000
Points per $11.53
Points earned30,00072,000
Equivalent in cash back$159.60$533.30
Ratio based on$100 Citi Prepaid Gift Card - 18,800 points$100 Coles Myer Gift Card - 13,500 points
Difference in comparison to annual fee- $39.40+ $338.30

*This comparison doesn’t take into account your personal situation and is used as a general demonstration. All fees and points earning rates are correct as of 18/10/2013.

Redeeming rewards for cash or vouchers gives you the simplicity and ability to redeem points for your everyday spending. You can use the cash to source out items that are already discounted or have the flexibility to purchase your preferred brand.

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