How to maximise rewards on everyday spend with American Express cards

Whether it’s paying bills, filling up the tank, a grocery shop or hitting a boutique, everyday purchases can provide an easy opportunity for earning points. That’s by using a points-earning credit card for the transaction. Cards issued by American Express can often be more rewarding than their Mastercard and Visa counterparts. That’s by having higher points earning rates per dollar spent, a higher points tiering threshold (or none at all), or both.

The number of points earned depends on the card. Some cards accrue frequent flyer points directly with Qantas, while others are direct-earn with the Velocity program of Virgin Australia. Separate to those, American Express has its own loyalty program, Membership Rewards. From there, points can be converted to an array of airline and hotel partner programs.

Here’s a look at how to earn rewards on routine purchases with American Express.

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Spend and earn on American Express

There’s no limit to the number of points you could earn on eligible American Express cards. Some cards apply different earning rates based on monthly or annual spend – but even so, you’d always be earning something on purchases. By comparison, some other card issuers award no points at all once certain caps have been exceeded.

As for Amex, the best-fit card will vary from one person to the next. Everybody spends different amounts, and on different things. American Express has a range of cards – each with its own distinct advantages.

Best American Express cards for flexible points

When it comes to earning points in American Express’ own Membership Rewards (MR) program, these are the key options for personal cardholders:

• Platinum Card: Earn 2.25 MR points per $1, aside from government spend which gives 1 MR point per $1.
• Explorer Credit Card: Earn 2 MR points per $1, apart from government transactions which accrue 1 MR point per $1.
• Essential Rewards Credit Card: On the first 10,000 points per month, earn 5x on dining (including bars and food delivery as well), 3x on streaming services and 2x at major retailers. Earn 1 MR point per $1 everywhere else. This includes government spend, and is the rate that applies to all categories of spend after earning 10,000 points per month.
• Platinum Edge Credit Card: Earn 3 MR points per $1 at supermarkets and petrol stations, 2 MR points per $1 on foreign currency transactions (a 3% international transaction fee applies), and 1 MR point per $1 everywhere else (including government spend).

From the numbers, we can see that the base earn rate of the Platinum Card is the most rewarding on standard purchases. But we can also see that those spending heavily on groceries or fuel could earn higher rewards with the Platinum Edge Credit Card. Ditto, those regularly spending on dining, with the Essential Rewards Credit Card. At least, for the latter, on the first 10,000 points per month.

Amex cards with frequent flyer points

For those who’d prefer automatic rewards with a single airline, American Express also offers ‘direct earn’ cards with Qantas and Virgin Australia. Here’s an outline.

• Qantas Ultimate Card: Get 1.25 Qantas Points per $1 up to 100,000 Qantas Points per year. Get 1 Qantas Point per $1 uncapped thereafter. Earn 2.25 Qantas Points per $1 on eligible Qantas spend and 0.5 Qantas Points per $1 on all government spend.
• Qantas Premium Card: Receive 2 Qantas Points per $1 on eligible Qantas spend, 1 Qantas Point per $1 on everyday spend and 0.5 Qantas Points per $1 on government spend. These rates are uncapped.
• Qantas Discovery Card: Pocket 1.75 Qantas Points per $1 on Qantas spends, 0.75 Qantas Point per $1 on everyday purchases, and 0.5 Qantas Points per $1 on government send.
• Velocity Platinum Card: Enjoy an earn rate of 1.25 Velocity Points per $1 on everyday transactions. Direct with Virgin Australia, earn 2.25 Velocity Points per $1 spent. Government transactions accrue 0.5 Qantas Points per $1.
• Velocity Escape Plus Card: Take home 1.75 Velocity Points per $1 spent direct with Virgin Australia. Earn 1 Velocity Point per $1 of everyday spend until a total of 12,000 Velocity Points are earned per year (across all spend categories). After which, earn 0.75 Velocity Points per $1 ongoing. Government payments always earn 0.5 Velocity Points per $1.

At the end of the day, every transaction can be an opportunity to earn points. While annual fees apply to most cards (click the cards names above to check applicable fees), some may consider the value of the rewards earned – and the other card benefits provided – to outweigh the cost of those charges. Earning points can be a shortcut to flying in style for less, or to travelling in more affordable ways.

Also read: How to earn points when paying your rent and daily bills with a credit card

FAQ

Featured image courtesy of American Express. All opinions expressed in this article are solely those of Point Hacks’ editorial team.

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