Guide To Cashback and Gift Cards – Rewards Programs

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

Some of the most popular reward program features is the cashback. This includes vouchers or credit that you can redeem your reward points for. One of the biggest advantages of cashback 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 February 20th, 2018
Name Product Bonus Points Rewards Program Rewards Points per $ spent Purchase rate (p.a.) Annual fee Product Description
HSBC Platinum Credit Card
HSBC Rewards Plus


1
19.99% p.a.
$129 p.a.
Offers a 0% p.a. for 22 months balance transfer and an annual fee refund each year when you spend $6,000. Plus, complimentary travel insurance.
HSBC Platinum Qantas Credit Card
60,000 bonus points
Qantas Frequent Flyer


1
19.99% p.a.
$199 p.a.
Receive 60,000 bonus Qantas Points when you spend $3,000 within 3 months of card approval, plus enjoy complimentary travel insurance.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
60,000 bonus points
Velocity Frequent Flyer


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 and enjoy a discounted annual fee of $64 for the first year. Ends 28 February 2018.
St.George Amplify Card
Amplify Rewards


1
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of a 3% p.a. interest rate on balance transfers for 36 months. Plus, a $0 first year annual fee and 1 Amplify Point per $1 spent.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Velocity Frequent Flyer


0.66
0% p.a. for 14 months (reverts to 20.74% p.a.)
$129 p.a.
Save with 0% p.a. on purchases for 14 months and 0% p.a. on balance transfers for 6 months. Offer ends on 28 February 2018.
Virgin Australia Velocity High Flyer Card - 80k Bonus Points offer
80,000 bonus points
Velocity Frequent Flyer


1
20.74% p.a.
$289 p.a.
Take off sooner with up to 80,000 bonus Velocity Points and earn up to 1 Velocity Point per $1 spent. Offer ends on 28 February 2018.
American Express Platinum Business Card
150,000 bonus points
Membership Rewards Premium Ascent


1
$1,500 p.a.
Enjoy 150,000 bonus points, a platinum business concierge, complimentary Virgin Lounge access, worldwide travel insurance and hotel benefits.
American Express Platinum Card
80,000 bonus points
Membership Rewards Premium Ascent


1
$1,200 p.a.
Receive an annual $300 Platinum Travel Credit, 80,000 bonus Membership Rewards points and access to more than 1,100 VIP lounges.
ANZ Rewards Credit Card
25,000 bonus points
ANZ Rewards Program


1
18.79% p.a.
$0 p.a. annual fee for the first year ($80 p.a. thereafter)
Get 25,000 bonus Reward Points when you spend $2,500 on eligible purchases in the first 3 months from approval. Plus, a $0 first year annual fee.
ANZ Rewards Platinum
65,000 bonus points
ANZ Rewards Program


1.5
18.79% p.a.
$0 p.a. annual fee for the first year ($95 p.a. thereafter)
Receive a $0 first year annual fee offer, 65,000 bonus Reward Points when you meet the spend criteria and up to 1.5 points per $1 spent.

Compare up to 4 providers

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 February 20th, 2018
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
St.George Complete Freedom Account
Open an account online by March 2nd 2018, deposit $250 within 45 days and receive $50 into your account (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
Bank of Melbourne Complete Freedom
Open an account online by March 2nd 2018, deposit $250 within 45 days and receive $50 into your account (conditions apply)
Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 monthly fee applies. Unlimited free withdrawals at Bank of Melbourne, St.George, Westpac and BankSA ATMs. Go to site More
Westpac Choice Student
New account holders receive a $50 cashback bonus when they deposit $250 within 45 days of opening the account (conditions apply)
Mastercard $0 $2,000 No monthly service fee whilst you are a full time tertiary student More
Westpac Choice – for migrants
Customers newly arrived to Australia who open a Westpac Choice account receive $50 cash back after depositing $250 within 45 days of opening the account (conditions apply)
Mastercard $0 $2,000 $0 account keeping fees for the first year, then a $5 monthly fee applies. Unlimited free withdrawals at St.George, Westpac, BankSA or Bank of Melbourne ATMs in Australia. Go to site More

Types of cashback rewards programs

There are three major types of cash rewards programs:

  • Cashback 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.
  • Cashback 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 cashback reward credit cards

Cashback 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 February 20th, 2018
Name Product Bonus Points Rewards Program Rewards Points per $ spent Purchase rate (p.a.) Annual fee Product Description
Citi Simplicity Card
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. Plus, a 15 month balance transfer offer.
Virgin Money Low Rate Credit Card
11.99% p.a.
$49 p.a.
Receive a discounted annual fee, $100 cashback when you meet the spend requirement and up to 14 months interest-free on balance transfers.
Citi Rewards Classic Credit Card
Citi Rewards Program


1
20.99% p.a.
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Receive 1 point per $1 spent on eligible purchases, up to $50 cashback when you meet the minimum spend and a 15 month balance transfer offer.

Compare up to 4 providers

How much is a cashback worth?

To truly understand how much your cashback 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 cashback 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 cashback$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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