Guide To Cashback and Gift Cards – Rewards Programs

Information verified correct on September 26th, 2016

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 September 26th, 2016.

Commonwealth Bank Business Platinum Awards credit card

First year annual fee waiver has been extended until 31 October 2016.

September 2nd, 2016

Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer

Balance transfer offer has been extended until 31 October 2016.

September 26th, 2016

Virgin Australia Velocity Flyer Card - Bonus Points and Balance Transfer Offer

Bonus points and balance transfer offer have been extended until 31 October 2016.

September 26th, 2016

View latest updates

Jonathan Choi Jonathan
Rewards Points per $ spent (AMEX) Rewards Points per $ spent (VISA/MC) Bonus Points Annual fee
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
0 1 $149 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Receive an exclusive $129 Virgin Australia Gift Voucher each year when you meet the spend requirement. Also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
0 0.66 $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
Receive 30,000 bonus Velocity Points and earn 1 Velocity Points per $1 spent. Receive an exclusive $129 Virgin Australia Gift Voucher and two complimentary Single Entry Virgin Australia domestic Lounge passes each year.
0 1 30,000 bonus points $144 p.a. annual fee for the first year ($289 p.a. thereafter) Go to site More info
Commonwealth Bank Business Platinum Awards credit card
Earn up to 3 Awards points per dollar spent, enjoy complimentary insurances and $0 annual fee for the first year.
3 1 $0 p.a. annual fee for the first year ($300 p.a. thereafter) Go to site More info
Virgin Australia Velocity Flyer Card - Bonus Points and Balance Transfer Offer
Earn up to bonus Velocity Points. Redeem your Velocity Points for more flights or other great rewards.
0 1 $64 p.a. annual fee for the first year ($129 p.a. thereafter) More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Receive 0% p.a. for 12 months on purchases, 0% p.a. for 6 months balance transfers and an exclusive $129 Virgin Australia Gift Voucher every year.
0 0.66 $129 p.a. Go to site More info
HSBC Platinum Qantas Credit Card
Receive 60,000 bonus Qantas Points on eligible spend within 3 months. Enjoy access to premium benefits and complimentary insurance.
0 1 60,000 bonus points $199 p.a. Go to site More info
American Express Platinum Card
Receive 80,000 Membership Rewards Bonus Points when you meet the minimum spend requirement and earn up to 3 points per dollar spent. Gain access to travel insurance, $300 Platinum Travel Credit every year and access to 800 VIP airport lounges.
1 0 80,000 bonus points $1,200 p.a. Go to site More info
Citi Rewards Platinum Card - Cashback Offer
Earn $250 cashback on eligible spend, plus enjoy 0% p.a. balance transfer offer for 12 months, discounted annual fees for the life of the card and a complimentary travel insurance.
0 1.25 $99 p.a. annual fee for the first year ($199 p.a. thereafter) Go to site More info
ANZ Rewards Credit Card
Get 25,000 bonus Reward Points after your first eligible purchase is made within 3 months of card approval and earn 1.5 points per dollar spent.
1.5 0.75 25,000 bonus points $80 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 September 26th, 2016
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
ING DIRECT Orange Everyday Account
$75 cash bonus.
Get a competitive ongoing variable rate when linked with a Savings Maximiser.
Visa $0 $1,000 No monthly fees, and you can use any ATM in Australia for free when you deposit $1,000 each month e.g your salary. Open More
St.George Complete Freedom Account
Additional $50 to new accounts (conditions apply).
$0 ATM withdrawal fee via St.George's Global ATM Alliance.
Visa $0 $2,000 No account keeping fees, if you deposit $2,000 per month plus no minimum balance required. No ATM fees when using St.George, Westpac and BankSA ATMs. Open 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 September 26th, 2016.

American Express Essential Credit Card

$50 credit + 0% p.a. for 12 mos. on balance transfers w/ a one-off 1% credit plan establishment fee

July 5th, 2016

Citi Rewards Platinum Card - Cashback Offer

$250 cashback offer and 0% for 12 mos. balance transfer offers until 5 October 2016.

July 13th, 2016

ANZ Platinum Credit Card - Exclusive Offer

Exclusive $200 back when you spend $500 on eligible purchases within the first 3 months

August 31st, 2016

View latest updates

Jonathan Choi Jonathan
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
ANZ Platinum Credit Card - Exclusive Offer
Receive $200 back when you spend $500 in the first 3 months. Also enjoy a $0 annual fee for the first year.
19.74% p.a. $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card. Also enjoy a 0% p.a. balance transfer rate for 12 months.
14.99% p.a. 0% p.a. for 12 months with 1% balance transfer fee $0 p.a. Go to site More info
Virgin No Annual Fee Credit Card
$100 cashback and a no annual fee card with balance transfer offer. Spend criteria applies for cashback offer.
18.99% p.a. 0% p.a. for 18 months with 2% balance transfer fee $0 p.a. Go to site More info
Citi Rewards Platinum Card - Cashback Offer
Earn $250 cashback on eligible spend, plus enjoy 0% p.a. balance transfer offer for 12 months, discounted annual fees for the life of the card and a complimentary travel insurance.
20.99% p.a. 0% p.a. for 12 months $99 p.a. annual fee for the first year ($199 p.a. thereafter) 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 Citibank 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. Citibank 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.

Citibank 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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Credit Cards Comparison

Rates last updated September 26th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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