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 May 26th, 2017.

Bank of Melbourne Amplify Platinum

Replaced 0% p.a. for 12 mos. BT offer with 60,000 bonus points valid until 20 September 2017

May 3rd, 2017

ANZ Rewards Platinum

A new offer of 50,000 Reward Points when you spend $2,500 on purchases within the first 3 months.

May 8th, 2017

ANZ Rewards Credit Card

A new offer of 25,000 bonus points when you spend $2,500 in the first 3 months

May 8th, 2017

View latest updates

Jonathan Choi Jonathan
Rewards Points per $ spent (VISA/MC) Rewards Points per $ spent (AMEX) Bonus Points Annual fee
HSBC Platinum Credit Card
Earn 1 Reward Point per $1 spent and receive an annual fee refund with minimum spend.
1 0 $99 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - Exclusive Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent within the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
0.66 0 $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
Take off sooner with up to 1 Velocity Point per $1 spent and receive 30,000 Bonus Velocity Points.
1 0 30,000 bonus points $144 p.a. annual fee for the first year ($289 p.a. thereafter) Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Save with 0% p.a. on purchases for 12 months. Also turn your everyday credit card spend into flights, accommodation and more with Velocity Points.
0.66 0 $129 p.a. Go to site More info
HSBC Platinum Qantas Credit Card
Fly faster with up to 1 Qantas Point per $1 spent and receive bonus Qantas Points on selected Qantas products, services and partners.
1 0 60,000 bonus points $199 p.a. Go to site More info
American Express Platinum Business Card
Earn up to 2 Membership Rewards Points per $1 spent and extend your cash flow up to 51 days.
0 1 100,000 bonus points $1,500 p.a. Go to site More info
American Express Platinum Card
Earn up to 3 Membership Rewards Points per $1 spent and receive complimentary access for you and a guest to over 1,000 VIP Lounges.
0 1 80,000 bonus points $1,200 p.a. Go to site More info
ANZ Rewards Credit Card
Receive 25,000 bonus points when you spend $2,500 on eligible purchases in the first 3 months from approval, earn up to 1 point per $1 spent on eligible purchases, plus enjoy a $0 annual fee for the first year.
1 25,000 bonus points $0 p.a. annual fee for the first year ($80 p.a. thereafter) Go to site More info
ANZ Rewards Platinum
Receive 50,000 bonus Reward Points when you spend $2,500 within the first 3 months plus enjoy a $0 annual fee for the first year.
1.5 50,000 bonus points $0 p.a. annual fee for the first year ($95 p.a. thereafter) Go to site More info
St.George Amplify Signature
Earn up to 3 Amplify Rewards Points per $1 spent and receive two complimentary airport lounge passes per year.
1.5 0 90,000 bonus points $279 p.a. Go to site More info

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 May 26th, 2017
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
ING DIRECT Orange Everyday Account
$75 cash bonus & Apple Pay available.
Get a competitive ongoing variable rate when linked with an ING Direct Savings Maximiser.
Visa $0 $1,000 $0 monthly account keeping fees. Unlimited free withdrawals at any ATM in Australia if you deposit $1,000 each month. Go to site More
Bankwest Easy Transaction Account
2% cash back offer for new customers (conditions apply).
Open account by 30 June 2017 to earn 2% cash back on contactless purchases and pay no monthly fees until 31 August 2017.
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 for online gaming purchases.
A student bank account with a linked Visa debit card and Mobile + Phone banking.
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
St.George Complete Freedom Account
10% Cash back for online gaming purchases.
Waived account keeping fees when minimum deposit is met with no minimum balance.
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

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 May 26th, 2017.

Citi Rewards Classic Credit Card

BT period changed from 12 to 15 months plus new offer of $50 cash back, valid until 30 June 2017.

January 13th, 2017

Citi Simplicity Card

Intro BT period changed to 6 months and 10% cashback offer on purchases, valid until 31 Aug 2017.

May 23rd, 2017

View latest updates

Jonathan Choi Jonathan
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
American Express Essential®  Credit Card
Receive a $50 credit when you apply online, are approved and spend $750 within the first 3 months of card membership.
14.99% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
Citi Rewards Classic Credit Card
Receive up to 5% cash back on all retail purchases, up to $1,000 in your first 90 days from card approval (capped at $50).
20.99% p.a. 0% p.a. for 15 months with 1.5% balance transfer fee $49 p.a. annual fee for the first year ($99 p.a. thereafter) Go to site More info
Citi Simplicity Card
Receive 10% cashback on eligible purchases (capped at $50 per month for 4 months from card approval).
19.99% p.a. 0% p.a. for 6 months $0 p.a. Go to site More info

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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