Woolworths cuts credit card Qantas frequent flyer points

By Chris Chamberlin, February 9 2018
Woolworths cuts credit card Qantas frequent flyer points

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You should seek independent advice and consider your own personal circumstances before applying for any financial product.

Woolworths Money customers will collect fewer Qantas frequent flyer points on their credit card spends from April 1, when the Woolworths Qantas Platinum Visa card takes on new frequent flyer earning rates.

Currently, the card delivers one Qantas Point per $1 spent up to $2,500 per monthly statement period, and 0.5 Qantas Points per $1 spent beyond that ceiling, uncapped, until the next statement period begins.

From April, that’s cut to 0.5 Qantas Points per $1 spent on all everyday purchases – doing away with the higher earn rate on the first $2,500 of monthly transactions – although purchases made directly at Woolworths, Big W, Caltex Woolworths, BWS, Dan Murphy’s and Cellarmasters will accrue one Qantas Point per $1 spent under the new earning rate.

Transactions made directly with Qantas, such as paying for Qantas flights or Qantas Club lounge membership, continue to attract an extra Qantas Point per dollar spent, but the reduction in the card’s base earning rate cuts this from a maximum of 2 Qantas Points earned per $1 spent to a lower 1.5 Qantas Points per $1 spent.

There’s no change to the number of points that can be earned through the separate Woolworths Rewards program – from which points can later be converted into Qantas Points – either for Woolworths Money credit card customers or other shoppers.

That said, while the Woolworths Money card will provide one Qantas Point per $1 spent at the supermarket with an ongoing annual fee of $169, the AMEX Platinum Edge credit card awards three times as many frequent flyer points on those same purchases at a comparable $195 annual fee.

Spend at petrol stations also earns two frequent flyer points per dollar spent on the Platinum Edge card in programs such as Virgin Australia Velocity and Singapore Airlines KrisFlyer – including at rival petrol stations such as operated by Coles, BP and Ampol – being two to four times as many points as on Woolworths’ card, depending on where you fill up.

The Woolworths Qantas credit card was an early champion for earning frequent flyer points on Visa purchases, initially with an earn rate of one Qantas Point per $1 spent without limit and with a lower annual fee, but recent changes to credit card ‘interchange fees’ have seen most banks wind back their credit card frequent flyer points.

Read: Australia's biggest banks slash credit card points


Executive Traveller may receive a commission when you apply for these credit cards via our links.

You should seek independent advice and consider your own personal circumstances before applying for any financial product.

Chris Chamberlin

Chris Chamberlin is the Associate Editor of Executive Traveller, and lives by the motto that a journey of a thousand miles begins not just with a single step, but also a strong latte, a theatre ticket, and later in the day, a good gin and tonic.

Cancelling this one next.

09 Feb 2018

Total posts 1

This is very disappointing. Particularly as they haven't notified anyone about it yet - had a look through the old statements, nothing. Plus, they just charged me the annual fee!

Has anyone had any luck cancelling their cards and/or getting an annual fee refund on the basis of a major change to the card and insufficient notice from the credit card provider?

Qantas - Qantas Frequent Flyer

06 Nov 2014

Total posts 349

I haven't had WW card so can't comment on it. But my experience with many other cards such as Citi and HSBC, I've got half annual fee of annual fee waived for the negative change.

Sometimes they couldn't offer anything, in my case with Westpac, they offered prorata annual fee refund. So i would say if you just had your annual fee charged you should be able to get most of it back if you cancel now.

Virgin Australia - Velocity Rewards

06 Aug 2017

Total posts 40

For three years in a row I called to cancel this card before the annual fee was due, and they waived the annual fee (I was just bluffing so I accepted the fee waiver and kept the card). The fourth year (last year) I called to tell them I was cancelling and they called my bluff: instead of waiving the fee they gave me a couple of thousand extra Qantas points. Next time the annual fee is due I'll probably cancel for real (unless they waive it again).

Having said that, this card is still pretty good value for those who do actually use it to shop at Woolworths, thanks to their monthly "10% off your next shop at Woolworths" offers. For my family, that well and truly pays for the annual fee. The card's 1.99% balance transfer rate isn't too shabby either.

15 Nov 2016

Total posts 18

Isn't there a direct connection between interest rates and points earning cards. If they reduce points, shouldn't we expect an interest rate reduction, or perhaps just change to any one of the many low rate cards...

05 May 2016

Total posts 552

Interest rates aren’t the only way they make money. There are transaction fees they charge merchants for example.

Qantas - Qantas Frequent Flyer

19 Jun 2017

Total posts 42

As Christian mentions, very disappointing as no official notification has been provided to the customers. Pretty certain I'm cancelling this one and swapping for something that provides better value!

11 Jan 2012

Total posts 3

i'm super annoyed by this. I've just paid the card off and am hopefully going to find time to cancel today. This cards value has just decreased and decreased since macquarie too over. first it was a reduction in points and a jacking up of annual fee. then they put up price of additional card holder $20. and now this. I'm going back to HSBC platinum which is much better value for around the same price, and for everything else, we have our big Amex, which woolies takes and gives us way more points, plus we travel every year with qantas so the $450 fee is entirely offset with that!

This is really sad. In another 6 months it will probably only be points at woolies owned stores!

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