Companion Credit Cards
Posted November 25th, 2009
and last modified June 2nd, 2010
Featured Companion Credit Card
The ANZ Frequent Flyer is a companion credit card that will get you to your desired destination in no time at all. This is because you can use the power of both the American Express and Visa credit card network to earn Qantas Frequent Flyer.
- $95 annual fee
- 19.49% p.a. on purchases
- 2.9% p.a. for 12 months on balance transfers
- Cash Advance Rate of 20.74%
- No Qantas Frequent Flyer points capping
Click here to read the ANZ Frequent Flyer – Balance Transfer Option terms and conditions
The idea behind companion credit cards is that you get the best of both worlds – the widespread acceptance of Visa or MasterCard, and the kudos and extra privileges of American Express.
All the big four banks – NAB, Commonwealth, Westpac and ANZ – now operate companion credit card schemes, and they are designed to speed up the rate at which rewards points can be accumulated. Where Visa and MasterCard purchases may bring one point per dollar spent, American Express purchases can bring two or three points per dollar. The Commonwealth Bank rewards programme would require that you accumulate 16,200 MasterCard points to redeem a $100 shopping voucher, but with American Express you only need 5,400 points.
The idea is that you use your American Express card where it is accepted and earn more points per dollar for doing so. American Express does not enjoy the same coverage as Visa or MasterCard, so many people who opt for just one credit card would not choose Amex above Visa or MasterCard.
Companion credit cards are a way round this. They operate as one account, have one annual fee, and all points count towards one rewards programme. The downside is that it can cost more to use an American Express credit card, and, despite the fact that there is only one annual fee, it is higher than for having just one credit card, so the other card is being added into that. The APR on these cards is also above average.
These are the Amex companion credit cards being offered by the big four banks to accompany their Visa or MasterCard offerings.
- Westpac’s Altitude American Express costs $100 per year but you get two points per dollar with the Amex card, as opposed to one with the MasterCard.
- Commonwealth’s Bank Awards American Express has a low annual fee of $89.00, and you get 1.5 points per $1 spent
- ANZ’s Frequent Flyer Amex is just under $100 a year with a one-for-one point value
- NAB’s Velocity Amex card is the cheapest, with the lowest interest rate but less than one point for every dollar
As a point of interest, the Australian Securities & Investments Commission has recently taken an interest in NAB’s companion credit card scheme, specifically as it relates to NAB Qantas Gold account customers. ASIC was concerned that the distribution of these new Amex companion cards was unsolicited and potentially in breach of the Australian Securities and Investments Commission Act 2001, which prohibits the sending of unsolicited credit and debit cards, except where:
- a customer has requested the card in writing; or
- the card is sent in renewal or replacement of, or in substitution for, a card of the same kind previously sent to the customer.
Between February and May 2009, NAB proactively migrated customers with a NAB Gold Rewards account (MasterCard or Visa card) to an NAB Qantas Gold account (with a MasterCard or Visa card, and a companion American Express card). NAB has now written to all of its Qantas Gold account customers, giving them the option to opt in or opt out of their companion credit cards scheme in writing.
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