ANZ Rewards Black Credit Card

If you’d like to earn rewards on your substantial credit card spending but don’t expect to need frequent flyer points because you never fly at your own expense, then the ANZ Rewards Black Credit Card may be just what you’re looking for. While frequent flyer points are almost always far better value than ordinary rewards points, they’re worthless if you can’t use them. This rewards card is packed with other benefits too, including first-purchase bonus points.

Lower annual fee than the corresponding frequent flyer card

The $375 annual fee (plus $65 per additional cardholder) is lower than the charge for the ANZ Black Frequent Flyer Card (probably in recognition of the lower value of rewards points compared with frequent flyer points) but it’s still reasonably steep. You can recoup the cost, however, if you take full advantage of the extras, especially in the first year.

Unattractive interest rates

The purchase interest rate on unpaid balances is a high 20.24 percent (same rate applies for cash advances), but holders of black credit cards will mostly plan to avoid interest charges by paying off their account balance in full every month.

150,000 bonus points just for using the card for everyday expenses

Provided you spend at least worth $4,000 on eligible purchases in the first 3 months of holding the card, you’ll not only earn regular rewards points, you’ll also receive the very generous welcome gift of 150,000 points.

Attractive points earning rate

Since this is a Visa card, not an AmEx card, you’d be forgiven for assuming that the points earning rate was modest. However, whilst it’s not spectacular, it is certainly appealing, at 2.0 points per dollar up to a threshold of $5,000 per monthly statement period.

Beyond $5,000 it does fall somewhat dramatically to only 1.0 points per dollar, but there’s no absolute cap, no zero points drawback if you can pull off a major purchase on your credit card. Every eligible purchase, no matter how large, will earn points.

Bonus points mall

You can give your points balance a quick boost of up to 10 points per dollar spent at ANZ Rewards bonus points partners. Stores include David Jones, Marcs, Country Road, Dan Murphy’s online, Apple, Dell, and many more.

Using the rewards points

As the card’s name implies, you’ll be collecting points for the in-house rewards scheme, ANZ Rewards. There are five ways to redeem them.

• Direct exchange for a range of products, including homewares, toys, travel, entertainment, fashion and beauty, financial services and technology.
• Exchange for gift cards to spend at major retailers including Woolworths, Myer, David Jones, Bunnings, JB Hi-Fi and many more.
• Redeem against flights and holiday packages.
• Convert rewards points to frequent flyer points with four airlines: Virgin, Singapore Airlines, Cathay Pacific and Air New Zealand.
• Take the points as an ANZ money back, a dollar value credit to any ANZ account, including your credit card account.

It’s worth taking a look at each of these redemption methods in more detail.

• Direct exchange for products

ANZ Rewards offers a range of products that you might find at a typical department store, plus a variety of experiences and services. You could, for example, purchase a Delonghi Nespresso Vertuo Plus Coffee Machine in exchange for 62,695 points (the result of a $31,348 spend if the monthly threshold is not exceeded). Or you could buy it at Harvey Norman for $199, making the value of the points 0.6 cents per dollar spent.

• Exchange for gift cards

You can exchange your points for gift cards to spend at major retailers, or on car hire and hotels, or even use as charity donations. A $20 Woolworths or Myer gift card will cost you 4,445 points, resulting from $2,223 worth of below-the-threshold purchases, an equivalent value of 0.9 cents per dollar spent.

• Airline flights and holiday packages

It’s difficult to place a value on the flights and holiday packages offered in the ANZ Rewards online store. But if air travel is your aim in collecting rewards, you might be better off opting for the ANZ Frequent Flyer Black card in order to earn valuable Qantas points directly.

• Convert to frequent flyer points

ANZ Rewards points can be converted to points with Virgin Velocity, Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles and Air New Zealand Airpoints. Once again, if frequent flyer points are your aim it would make more sense (and cents) to use a frequent flyer credit card, although having four airlines to choose from does provide some flexibility.

• ANZ money back

You can convert your reward points to a cash credit against any ANZ account, including your credit card or a mortgage offset account. You’ll need 12,500 reward points for each $50 credit to your account, requiring a $6,250 spend and working out at 0.8 cents per dollar, slightly less value than a shopping gift card.

The redemption methods come with a ‘Points plus Pay’ option, meaning that you can pay with a combination of points plus a cash debit to your credit card if you have insufficient points.

Rewards points expire if not used within three years, and also expire within 60 days if you close the credit card account on which you earned them.

Other built-in benefits

As you would expect with a black card, there is a range of complimentary benefits to offset the high annual fee:

• Personal concierge service

A black credit card holder might find occasion to use the card’s global 24/7 personal concierge service for assistance with travel, entertainment and restaurant bookings.

• Visa Entertainment

Make use of Visa Entertainment’s pre-sale tickets and special offers in travel, leisure and dining.

• Exclusives by ANZ

This is yet another layer of special privileges for holders of ANZ Black cards. Past events include an Archibald Prize Dinner, an Australian Open Ultimate Experience and The Ultimate Insider Experience at the Formula 1 Grand Prix.

• A wide range of insurance cover

Allianz annual multi-trip international travel insurance for the cardholder and immediate family, covering items like medical expenses, theft, loss and damage of property and rental vehicle excess in Australia insurance. For regular travellers, this is worth at least $750 a year. Activate the insurance cover by using the card for at least $250 of each trip’s expenses for each traveller to be covered.
Interstate flight inconvenience cover, for flight delay, luggage delay, personal property cover, rental vehicle excess in Australia.
Transit accident insurance. Compensation for serious accidents on public transport.
Extended warranty. Up to 12 months on top of existing manufacturer’s warranty.
Purchase protection. Purchase protection insurance on card purchases against loss, accidental damage and theft.
Price protection. Price difference refunded if you find the identical product (purchased in a bricks-and-mortar store) cheaper elsewhere locally within 21 days.

Competing cards

If you’re committed to Qantas and can justify the higher fees for earning direct Qantas Frequent Flyer points at a faster rate, compare the ANZ Frequent Flyer Black Credit Card or the Westpac Altitude Black Credit Card. But if you’d prefer a wider range of reward options, take a look at the St. George or Bank of Melbourne Amplify Signature Credit Cards.

A card designed for . . .

The ANZ Rewards Black Credit Card is ideally suited for the big spender who would like to see some benefit for channelling expenditure through a card, but isn’t a committed frequent flyer points collector. In the first year, the bonus of 150,000 points (worth $750 in Flight Centre gift cards) is twice the annual fee, meaning that you are actually paid to be a cardholder. In subsequent years the complimentary insurance policies and lounge access easily offset the otherwise high annual fee.