Discover the Benefits of the American Express Velocity Platinum Credit Card
The American Express Velocity Platinum Credit Card is a premium offering tailored for frequent flyers, particularly those loyal to Virgin Australia.
This card is packed with benefits that cater to travellers, from earning Velocity Points on everyday purchases to enjoying complimentary flights and lounge access.
In this blog post, we will delve into the features, benefits, and potential drawbacks of the American Express Velocity Platinum Credit Card, helping you decide if it’s the right fit for your lifestyle.
Key Features
Earning Velocity Points
One of the primary attractions of the American Express Velocity Platinum Credit Card is its ability to earn Velocity Points, which can be redeemed for flights, upgrades, and other rewards through the Velocity Frequent Flyer program. Here’s how you can earn points:
- 1.25 Velocity Points per $1 spent on eligible purchases, excluding those with government bodies.
- 2.25 Velocity Points per $1 spent on selected Virgin Australia purchases.
- 0.5 Velocity Points per $1 spent on transactions with government bodies, such as the Australian Taxation Office.
There is no cap on the number of points you can earn, making this card an excellent choice for high spenders looking to maximise their rewards.
Bonus Points Offer
New card members can earn a substantial bonus of 100,000 Velocity Points when they apply online, are approved, and spend $3,000 on eligible purchases within the first three months.
This offer is available until 15 May 2024 and is subject to terms and conditions.
Complimentary Flights and Lounge Access
Each year, cardholders receive a complimentary domestic return flight with Virgin Australia. This benefit alone can offset the card’s annual fee if used wisely. Additionally, cardholders enjoy:
- Two complimentary Virgin Australia lounge passes each year at selected domestic airports.
- Two complimentary entries per year to the Centurion® Lounge, located at Sydney International Airport or Melbourne International Airport.
These perks provide significant value for frequent travellers, offering comfort and convenience before flights.
Travel and Shopping Insurance
The American Express Velocity Platinum Credit Card includes a range of insurance benefits, such as:
- Complimentary Domestic and International Travel Insurance, which covers various travel-related incidents, including limited cover related to COVID-19.
- Travel Inconvenience Cover, which provides compensation for delays, missed connections, and other travel disruptions.
- Card Purchase Cover and Card Refund Cover, which protect purchases made with the card against theft, loss, or damage, and offer refunds for eligible items.
These insurance benefits add a layer of security and peace of mind when travelling or shopping.
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Additional Benefits
Velocity Frequent Flyer Status Credits
Cardholders can earn 100 Velocity Frequent Flyer Status Credits when they spend a minimum of $50,000 on eligible purchases within their membership year.
Status Credits help you move up the tiers in the Velocity Frequent Flyer program, unlocking additional benefits such as priority boarding and extra baggage allowance.
Mobile Wallet Integration
The American Express Velocity Platinum Credit Card supports Apple Pay, Google Pay, and Samsung Pay, allowing you to make secure, contactless payments using your smartphone.
This feature is particularly useful if your physical card is lost or stolen, as you can continue making purchases with your mobile device.
Plan It Instalment Plans
American Express offers the ‘Plan It’ feature, which allows cardholders to create instalment plans for larger purchases.
You can choose to pay off your balance over 3, 6, or 12 months with a fixed monthly fee. This feature provides flexibility in managing your finances and can be a helpful tool for budgeting.
Fees and Interest Rates
Annual Fee
The American Express Velocity Platinum Credit Card comes with an annual fee of $375.
While this may seem steep, the benefits, particularly the complimentary flight and lounge access, can easily offset this cost if utilised effectively.
Interest Rates
- Purchase Rate: 20.74% p.a.
- Cash Advance Rate: 23.99% p.a.
- Interest-Free Period: Up to 55 days on purchases, provided you pay your balance in full each month.
Other Fees
- Late Payment Fee: $30
- Foreign Transaction Fee: 3% of the converted amount
- Balance Transfer Fee: 1% with a 0% p.a. rate for the first 12 months on balance transfers.
Eligibility Criteria
To apply for the American Express Velocity Platinum Credit Card, you must meet the following criteria:
- Be at least 18 years old.
- Be an Australian citizen or permanent resident or hold a long-term visa.
- Have a minimum annual income of $65,000.
- Have a good credit history and no record of bad debt or payment defaults.
→ CLICK HERE TO REQUEST YOUR CREDIT CARD
Pros and Cons
Pros
- High Velocity Points Earn Rate: Earn up to 2.25 points per $1 spent on Virgin Australia purchases.
- Generous Bonus Points Offer: 100,000 bonus points for new card members who meet the spending criteria.
- Complimentary Flights and Lounge Access: Annual return flight and lounge passes add significant value.
- Comprehensive Insurance Coverage: Travel and shopping insurance provide peace of mind.
- Flexible Payment Options: ‘Plan It’ instalment plans help manage larger purchases.
Cons
- High Annual Fee: $375 annual fee may be prohibitive for some users.
- Limited Acceptance: American Express is not as widely accepted as Visa or Mastercard, particularly at smaller retailers.
- Foreign Transaction Fee: 3% fee on international purchases can add up for frequent travellers.
- High Interest Rates: Purchase and cash advance rates are relatively high, making it less suitable for those who carry a balance.
Is the American Express Velocity Platinum Credit Card Right for You?
The American Express Velocity Platinum Credit Card is an excellent choice for frequent flyers, particularly those loyal to Virgin Australia.
The ability to earn Velocity Points quickly, coupled with the generous bonus points offer, makes this card highly attractive for points hunters.
The complimentary flight and lounge access provide substantial value, effectively offsetting the annual fee for those who travel regularly.
However, the high annual fee and interest rates mean this card is best suited for individuals who can pay off their balance in full each month and make the most of the travel benefits.
If you frequently travel overseas or shop with smaller retailers, the limited acceptance of American Express and the foreign transaction fee may be drawbacks to consider.
Tips for Maximising Your American Express Velocity Platinum Credit Card
To get the most out of your American Express Velocity Platinum Credit Card, consider the following tips:
- Use the Card for Everyday Purchases: Maximise your points earning potential by using the card for all eligible purchases, particularly those with higher earn rates.
- Take Advantage of Bonus Points Offers: Ensure you meet the spending criteria to earn bonus points when available.
- Utilise Complimentary Flights and Lounge Passes: Plan your travel to make the most of the complimentary flight and lounge access each year.
- Pay Your Balance in Full: Avoid high interest charges by paying off your balance in full each month.
- Leverage Insurance Benefits: Use the card for travel and significant purchases to take advantage of the included insurance coverage.
Conclusion
The American Express Velocity Platinum Credit Card is a powerful tool for frequent flyers looking to maximise their rewards and enjoy premium travel benefits.
With a high points earn rate, generous bonus points offer, and valuable travel perks, this card stands out in the Australian market.
However, it’s essential to consider the annual fee, interest rates, and acceptance limitations before applying.
If you can leverage the benefits effectively and manage your spending, the American Express Velocity Platinum Credit Card can be a rewarding addition to your wallet.