FULL GUIDE: How American Express card rewards are changing
Some lower earn rates, flattened tier structures and wider acceptance will impact how you earn points.
In November 2018, American Express announced it would be rolling out a bunch of changes across its consumer and business rewards credit card range from 15 April 2019. These revisions will impact how card members earn and spend their points.
The number of points you can earn per $1 spent have dropped across most Amex cards, but increased on some (such as the American Express Explorer and Essentials cards). Amex has flattened the tiered points structure on many cards, making it easier to understand how many points you'll earn on different transactions.
As well as reduced earn rates, you'll likely have to use more points to redeem the same rewards with the Membership Rewards program. This includes when you're exchanging your points for frequent flyer points with partners like Velocity and KrisFlyer.
All other card features (including annual fees, purchase interest rates and extra perks like airport lounge passes and access to Amex Invites) remain the same. To help you understand how your points potential has changed, we've summarised the new earn and burn rates, how the products compare to other rewards cards and why Amex has rolled out these changes.
How the earn rates will change
Whether you collect Membership Rewards (MR), Qantas Points or Velocity Points, the number of points you can earn per $1 spent with your Amex has changed. Some increased earn rates and flattened tier structures can boost your points potential, but the value of earn rates across consumer cards has dropped by 21% following these updates.
You can compare the different earn rates you can expect from today below:
Consumer cards
| Amex card | Reward program | Earn rates per $1 spent on eligible transactions (until 15 April 2019) | Earn rates per $1 spent on eligible transactions (from 15 April 2019) |
|---|---|---|---|
| Explorer | Membership Rewards |
|
|
| Essentials | Membership Rewards |
|
|
| Platinum Edge | Membership Rewards |
|
|
| Platinum | Membership Rewards |
|
|
| Qantas Discovery | Qantas Frequent Flyer |
|
|
| Qantas Premium | Qantas Frequent Flyer |
|
|
| Qantas Ultimate | Qantas Frequent Flyer |
|
|
| Velocity Escape | Velocity Frequent Flyer |
|
|
| Velocity Platinum | Velocity Frequent Flyer |
|
|
Corporate cards
Unlike consumer cards, the earn rates have increased across the Amex corporate rewards cards.
| Amex Card | Reward Program | Earn rates per $1 spent on eligible transactions (until 15 April 2019) | Earn rates per $1 spent on eligible transactions (from 15 April 2019) |
|---|---|---|---|
| Business Explorer | Membership Rewards |
|
|
| Business | Membership Rewards |
|
|
| Gold Business | Membership Rewards |
|
|
| Business Platinum | Membership Rewards |
|
|
| Corporate | Membership Rewards |
|
|
| Corporate Gold | Membership Rewards |
|
|
| Corporate Platinum | Membership Rewards |
|
|
| Qantas Corporate | Qantas Frequent Flyer |
|
|
| Qantas Corporate Gold | Qantas Frequent Flyer |
|
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| Qantas Corporate Platinum | Qantas Frequent Flyer |
|
|
Flattened tiered earn rates
As you may have noticed in the table above, many Amex cards that earn a different amount of points per $1 spent depending on the transaction type will now have a flattened earn rate. This clears up the confusion when calculating how many points you'll earn, but it will impact your points potential.
For example, with the American Express Platinum, you previously earned 3 Membership Rewards points per $1 spent at restaurants, 2 Membership Rewards points per $1 spent on travel and overseas transactions, 1 point per $1 spent on all other purchases and 0.5 points per $1 spent on government, utilities and insurance transactions. This has changed to 2.25 points per $1 spent on all eligible transactions and 1 point per $1 spent on government transactions.
These flattened tiers could be good or bad news depending on your usual spending habits. For example, if you're using the American Express Platinum card, you could increase your points balance if you regularly use your card to cover everyday transactions more than you would to pay the bill at a restaurant.
The American Express Platinum Edge will continue to have a 3-2-1 points structure, although it now collects 3 points per $1 spent on both supermarket and petrol spend. This is up from 2 points per $1 spent on petrol, which is good news if you regularly use your card to cover fuel costs.
More points needed to redeem rewards
The changes also impact the number of points you need to redeem rewards. You need to spend more points to redeem frequent flyer points, hotel loyalty points, gift cards and other rewards.
The exchange rates from Membership Rewards to partner frequent flyer points have lowered to the same rate across Membership Rewards Gateway, Ascent and Ascent Premium programs. This makes the frequent flyer value of your Membership Rewards points easier to understand, but it means Ascent and Premium Ascent members receive even fewer airline miles per Membership Reward point.
You can compare the consumer burn rate changes below:
Membership Rewards Gateway
| Point conversion until 15 April 2019 | Point conversion from 15 April 2019 |
|---|---|
| 4 MR points = 3 Velocity Points | 2 MR Points = 1 Velocity Point |
| 4 MR points = 3 KrisFlyer Miles | 2 MR Points = 1 KrisFlyer Mile |
| 4 MR points = 3 Skywards Miles | 2 MR Points = 1 Skywards Mile |
| 1 MR point = 1 Hilton Honors point | 2 MR points = 1 Hilton Honors point |
| 3 MR points = 2 Marriott points | No change |
| 13,500 MR points = $100 at American Express Travel | 13,500 MR points = $67.50 at American Express Travel |
| Select + Pay with points: 1,000 MR points = $7.41 credit | Select + Pay with points: 1,000 MR points = $5 credit |
| Points for credit: From 13,500 MR points = $100 | Points for credit: From 13,500 MR points = $67.50 |
| 13,500 MR points = $100 gift card | 20,000 MR points = $100 gift card |
Membership Rewards Ascent and Premium Ascent
| Point conversion until 15 April 2019 | Point conversion from 15 April 2019 |
|---|---|
| 1 MR point = 1 Qantas Point (Ascent Premium only) | 2 MR point = 1 Qantas Point (Ascent Premium only) |
| 1 MR point = 1 Velocity Point | 2 MR points = 1 Velocity Point |
| 1 MR point = 1 KrisFlyer Mile | 2 MR points = 1 KrisFlyer Mile |
| 4 MR point = 3 Skywards Miles | 2 MR points = 1 Skywards Mile |
| 1 MR point = 1 Hilton Honors point | 2 MR points = 1 Hilton Honors point |
| 3 MR points = 2 Marriott points | No change |
| 10,000 MR points = $100 at American Express Travel | 10,000 MR points = $50 at American Express Travel |
| Select + Pay with points: 1,000 MR points = $7 credit | Select + Pay with points: 1,000 MR points = $5 credit |
| Points for credit: From 8,000 MR points = $50 | Points for credit: From 8,000 MR points = $40 |
| 13,500 MR points = $100 gift card | 20,000 MR points = $100 gift card |
How will American Express credit cards compare?
To give you an idea of how the American Express credit cards measure up to other rewards cards, we've compared the new earn rates on Amex consumer cards with some of the similar products currently on the market.
Included are cards that earn Membership Rewards or bank rewards points, Qantas Points and Velocity Points. We've considered factors including the earn rates, annual fees and extra features.
As bonus points change quite frequently, we haven't included these promotional offers. However, as Amex frequently boasts competitive bonus points offers, it's worth factoring into your own comparison.
For a fuller comparison of the current offers, check out our rewards credit cards comparison tables for more details.
Credit card rewards
| Card type | Amex Explorer | ANZ Rewards Black | CBA Diamond Awards | NAB Rewards Signature | Westpac Altitude Black |
|---|---|---|---|---|---|
| Annual fee | $395 p.a. | $375 p.a. | $349 p.a. | $295 p.a. | $295 p.a. |
| Points earn rates per $1 spent on eligible purchases |
| 2 ANZ Rewards points up to $5,000 per statement period and 1 ANZ Rewards point thereafter | 1.25 CBA Awards points | 1.25 NAB Rewards points | 1.25 Altitude Rewards points |
| Complimentary international travel insurance | Yes | Yes | Yes | Yes | Yes |
| Travel credit | Yes (worth $400) | No | No | No | No |
| Airport lounge access | Yes | Yes | No | No | Yes |
| Concierge service | No | Yes | Yes | Yes | Yes |
| Purchase interest rate | 23.99% p.a. | 20.99% p.a. | 20.24% p.a. | 20.99% p.a. | 19.99% p.a. |
Product details are correct at the time of writing.
In this instance, the American Express Explorer offers the most competitive earn rate. While it has the same 2 points per $1 spent rate as the ANZ card, it awards 1 point per $1 spent on government transactions and no points cap which puts it ahead. It also arguably features the most perks with airport lounge access, a travel credit and complimentary travel insurance. However, it charges the highest annual fee in this line-up of cards.
Qantas Points
| Card type | Qantas American Express Ultimate | ANZ Frequent Flyer Black | CBA Diamond (QFF) | NAB Qantas Rewards Signature | Westpac Altitude Black - Qantas |
|---|---|---|---|---|---|
| Annual fee | $450 p.a. | $425 p.a. | $379 p.a. ($349 p.a. annual fee and $30 Qantas yearly fee) | $295 p.a. annual fee for the first year ($395 p.a. thereafter) | $370 p.a. |
| Qantas Point earn rates per $1 spent on eligible purchases |
| 1 up to $7,500 per statement period and 0.5 after that | 0.5 | 1 up to $5,000 per statement period and 0.5 from $5,001 up to $20,000 per statement period. | 0.75 |
| Complimentary international travel insurance | Yes | Yes | Yes | Yes | Yes |
| Travel credit | Yes (worth $450) | No | No | No | No |
| Airport lounge access | Yes | Yes | No | No | Yes |
| Concierge service | No | Yes | Yes | Yes | Yes |
| Purchase interest rate | 23.99% p.a. | 20.99% p.a. | 20.24% p.a. | 20.99% p.a. | 19.99% p.a. |
| Interest-free days | Up to 44 days | Up to 55 days | Up to 55 days | Up to 44 days | Up to 45 days |
Product details are correct at the time of writing.
American Express has one of the most competitive options in the Qantas category. It offers the highest earn rate, no points caps and a bunch of extra features including complimentary travel insurance, a travel credit and airport lounge access. Again, it charges the highest annual fee out of the Qantas cards in this example.
Velocity Points
| Card type | American Express Velocity Platinum card | Virgin Australia Velocity High Flyer card | ANZ Rewards Travel Adventures credit card |
|---|---|---|---|
| Annual fee | $375 p.a. | $329 p.a. | $120 p.a. |
| Velocity Points earn rates per $1 spent on eligible purchases |
| 1 up to $8,000 per statement period and 0.5 after that | 0.75 up to $2,000 per statement period and 0.25 thereafter. |
| Complimentary international travel insurance | Yes | Yes | Yes |
| Travel credit or complimentary flight | Yes (Domestic return flight) | Yes ($129 Virgin Australia gift voucher) | Yes (Domestic return flight) |
| Airport lounge access | Yes | Yes | Yes |
| Concierge service | No | No | Yes |
| Purchase interest rate | 23.99% p.a. | 20.74% p.a. | 20.24% p.a. |
Product details are correct at the time of writing.
Not all of the Big Four banks issue credit cards that directly earn Velocity Points, so we've compared Amex to Virgin Money and ANZ. Amex still has the highest earn rate and no points caps partnered with extra features like insurance, a complimentary flight and airport lounge access. Again, these competitive earn rates and extras come at the cost of a high annual fee.
Why has American Express changed its earn rates?
Over the last few years, Amex has reduced its merchant fees to ensure that Amex cards are accepted more widely and without high payment surcharges. Since January 2017, Amex has welcomed more than 120,000 new merchants to its network in Australia and this number is only continuing to grow. This means that while points earn rates have lowered across some cards, you have the opportunity to collect points at more places.
As a result of lowering card acceptance fees for merchants, Amex has had to make changes to its rewards credit cards to compensate for the cost. In 2016 and 2017, most of the major banks and card issuers dropped the value of their rewards credit cards following the interchange fee regulations that rolled out in July 2017.
While Amex wasn't initially impacted by these interchange fee regulations, this is another example of a rewards program feeling the impact of card acceptance fees.
Although Amex has reduced earn rates across a number of rewards credit cards, it still offers some of the most competitive rewards on the market. As the annual fees and purchase interest rates remain the same, it's worth comparing your options to ensure your Amex keeps rewarding you.
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