The Secret Hierarchy Of Credit Cards In Australia And The Perks That Matter Most

Choosing the right credit card can be a minefield of fees and perks which often go unused. So here’s a practical, Australia-focussed deep dive into the cards that actually deliver value right now.

I’ve grouped them by what they’re best at, then added quick-read tables and a nuts-and-bolts explainer on fees, interest, networks and points. Where numbers matter, I’ve cited the bank or card issuer.

Australian cards are split into three broad camps: bank-issued Visa and Mastercard products that earn either airline points or flexible bank points, American Express proprietary cards that usually earn faster and add premium travel perks, and specialist “no FX fee” cards that strip costs for overseas and online spending.

Value almost always comes from perks and points, not carrying a balance.

Purchase interest on rewards cards typically sits around 20 to 24 percent p.a., so the game is to pay in full and harvest the benefits. MoneySmart has a good primer on how interest-free days work and why carrying debt on a rewards card is costly.

Our Top Picks by Customer Goal

Goal	Card	Why it wins	Key perk(s)
Qantas points, premium perks	Qantas American Express Ultimate	High everyday earn, $450 Qantas Travel Credit, Qantas and Centurion lounge access on eligible visits	$450 Qantas Travel Credit, up to 2.25 Qantas Points per $1 on Qantas spend; 1.25 on everyday spend.
Best flexible points, mid-tier fee	American Express Explorer (Peasant AMEX card)	Strong earn into Amex Membership Rewards with a $400 annual Travel Credit that offsets most of the fee	2 MR points per $1, $400 Travel Credit, $395 fee.
Qantas points with a big-bank Visa/Mastercard and no FX fees	CommBank Ultimate Awards (Qantas opt-in)	Earn Qantas on a Mastercard, $0 international transaction fees, monthly fee can be waived with spend	$35 monthly fee waived at $4,000 spend, no international transaction fees, up to 1.2 Qantas Points per $1 to $10k per statement.
Flexible points with no FX fees on a bank card	NAB Rewards Signature	Rewards card that explicitly doesn’t charge international transaction fees; premium insurances	$35 monthly fee, 20.99 percent p.a. purchase rate, no international transaction fee on this card.
Velocity points, lounge passes and a travel voucher	Virgin Money Velocity High Flyer	Earn Velocity, get 2 Virgin Australia lounge passes and an annual Virgin credit	$329 annual fee, two VA lounge passes, $129 VA voucher, up to 1 Velocity Point per $1.
Qantas earn with a traditional big-bank card	ANZ Frequent Flyer Black	Qantas earn plus premium travel insurances; well-known flagship	Purchase rate 20.99 percent p.a.; annual fee listed as $425 on KFS. Earn structure set out in ANZ program T&Cs.
Low purchase interest (keep it simple)	Westpac Low Rate	9.90 percent p.a. purchase rate on a mainstream card	Up to 45 days interest-free, low rate.
Overseas and online spend with zero FX fees	Latitude 28° Global Platinum Mastercard	No international transaction or currency conversion fees on purchases	Zero FX fee on purchases; travel-friendly set-up.
All-out perks and lounges	American Express Platinum Card	Big-ticket benefits, global lounges, hotel status; fee offset by perks if you use them	$1,450 annual fee in Australia, $450 Travel Credit, extensive lounges.

What you Actually Get With the Headline Cards

Qantas American Express Ultimate

For Qantas loyalists who want speed, this is consistently one of the fastest earners on everyday spend. You get 1.25 Qantas Points per $1 on eligible purchases, boosted to 2.25 Qantas Points per $1 on eligible Qantas purchases, plus a $450 Qantas Travel Credit each year that offsets the $450 annual fee when used. Lounge perks are part of the bundle, and it runs on the Amex network which tends to deliver higher rewards than bank cards.

American Express Explorer

The sweet spot for flexible points in Australia. It earns 2 Membership Rewards points per $1 and includes a $400 Travel Credit against a $395 annual fee, so frequent domestic flyers can come out ahead by using the credit every year. Explorer’s MR points convert to multiple airline partners, which is valuable if you like shopping for the best award seat rather than locking into one program.

CommBank Ultimate Awards

If you want a Visa/Mastercard for near-universal acceptance and no international transaction fees, this is a strong big-bank option. The $35 monthly fee is waived when you spend at least $4,000 in a statement period, it charges no international transaction fee on purchases, and you can opt to earn Qantas Points with an earn rate up to 1.2 Qantas Points per $1 to $10,000 per statement.

NAB Rewards Signature

Another bank card that’s friendly for overseas and online shopping. NAB explicitly excludes this product from its international transaction fee, which pairs nicely with a premium benefits suite; the monthly fee is $35 and the purchase rate is 20.99 percent p.a. (focus on paying in full). You’ll earn flexible NAB Rewards points with multiple redemption routes including airline transfers, with partner terms updated regularly.

Virgin Money Velocity High Flyer

Velocity flyers get up to 1 Velocity Point per $1, two Virgin Australia lounge passes each year and an annual $129 Virgin Australia credit in exchange for a $329 annual fee. If you travel domestically with VA, those hard perks help the card pay for itself.

ANZ Frequent Flyer Black

A workhorse Qantas earner from a big four bank with premium insurances. ANZ’s Key Facts Sheet puts the purchase rate at 20.99 percent p.a. and the annual fee at $425, while the Qantas earn structure lives in ANZ’s Frequent Flyer program terms. Use for spend you’ll pay off and book the included insurances when you travel.

Westpac Low Rate

If you prioritise a lower purchase rate over points, Westpac’s Low Rate card sits at 9.90 percent p.a., well under typical rewards-card pricing. It’s a more forgiving back-stop if a balance ever sneaks through, though the real win is still paying in full.

Latitude 28° Global Platinum Mastercard

For overseas trips, foreign websites and marketplaces, 28° is popular because it charges no international transaction or currency conversion fees on purchases. If you usually use a rewards card day-to-day, keep a 28° in your wallet specifically for foreign currency transactions.

American Express Platinum Card

The premium charge card angle: an outsized suite of travel benefits and access to a wide lounge network in exchange for a high annual fee.

In Australia the fee is $1,450 and it includes a $450 Travel Credit. It’s best suited to frequent travellers who can exploit the lounge access, hotel status and statement credits each year.

Rates, Fees and a Side-By-Side Snapshot

Card	Network	Purchase rate p.a.	Annual or monthly fee	FX fee on purchases	Interest-free days
Qantas Amex Ultimate	American Express	23.99%	$450 p.a.	Applies	Up to 44 days
Amex Explorer	American Express	23.99%	$395 p.a.	Applies	Up to 55 days (typical for Amex credit)
CommBank Ultimate Awards (Qantas opt-in)	Mastercard	20.99%	$35 per month, waived at $4,000 spend	$0	Up to 44 days
NAB Rewards Signature	Visa	20.99%	$35 per month	$0	Up to 44–55 days (per product TMD)
ANZ Frequent Flyer Black	Visa	20.99%	$425 p.a.	Applies	Up to 55 days
Westpac Low Rate	Mastercard	9.90%	$59 p.a.	Applies	Up to 45 days
Latitude 28° Global Platinum	Mastercard	27.99%	$96 p.a. equivalent, or set monthly fee per issuer	$0	Up to 55 days
Amex Platinum Card	American Express	N/A charge card	$1,450 p.a.	Applies	No preset spend limit; pay in full monthly

Notes: “Applies” means the card charges an international transaction fee on non-AUD or overseas-processed purchases. Where issuers quote monthly fees, I’ve listed the monthly cost and any spend-to-waive rules. Always check the card’s Key Facts Sheet or Fees & Charges page for the latest numbers.

Points Earn, Caps and Transfer Flexibility

The fastest everyday earn on a Qantas card in Australia generally comes from the Qantas American Express Ultimate at 1.25 Qantas Points per $1 on eligible spend, bumping to 2.25 when you buy Qantas flights and services.

Some cards apply annual or statement-period caps or change earn rates after you hit a threshold; for example, Ultimate reduces the everyday earn after a large annual haul.

Check the earn tables on each product page and the program terms for caps and what doesn’t earn.

If you prefer airline flexibility, Amex Explorer’s 2 MR points per $1 feed into Membership Rewards with multiple airline partners, which can be richer than being locked to one frequent flyer program. That optionality is useful when Qantas Classic Rewards seats are scarce on your dates.

On the bank side, CommBank Ultimate can earn up to 1.2 Qantas Points per $1 to $10,000 per statement when you opt in to Qantas, and doesn’t charge international transaction fees, which makes it a practical all-rounder if you want a Mastercard that still feeds Qantas.

Velocity collectors who fly Virgin Australia get real-world value from lounge passes and the annual Virgin voucher that come with the Virgin Money High Flyer. The earn is up to 1 Velocity Point per $1 and the hard perks are easy to use.

Networks, acceptance, surcharges and the RBA backdrop

Visa and Mastercard enjoy near-universal acceptance in Australia and overseas. American Express acceptance is strong in cities and with large retailers, but some smaller merchants add a surcharge or don’t take it. The Reserve Bank’s current payments review and industry submissions show average merchant service costs are lowest for debit and higher for credit, with Amex typically the most expensive for merchants, which is why surcharges are more common on Amex. Any reform the RBA adopts could influence rewards economics over time.

Foreign transaction fees and when to avoid them

Foreign transaction fees are charged when you buy in a non-AUD currency or the transaction is processed overseas, even if the website looks Australian. If you spend internationally, pick a card with $0 international transaction fees like CommBank Ultimate Awards, NAB Rewards Signature or Latitude 28°. That one tweak can save roughly 2 to 3 percent on every foreign purchase. Always choose to pay in the local currency to dodge costly DCC at the terminal.

Worst value Credit Cards in Australia, yes they exist

Card Name	Annual Fee	Purchase Interest Rate	Key Issues
Latitude GO Mastercard	$0 (but costly balance transfer fee)	27.99% p.a. (29.99% after promo)	Extremely high ongoing interest, minimal perks, balance transfer reverts to very steep rate.
NAB Rewards Platinum – Velocity	$95 first year, then $195	20.99% p.a.	Annual fee almost doubles after year one, rewards don’t justify cost for average spenders.
HSBC Premier World Mastercard	Increased from $0 to $399	~20% p.a.	Surprise fee hike, little benefit added, poor value compared to competitors

How to Pick a Card Like a Point-Chasing, Fee-Avoiding Pro

Start with your flight pattern.

If you live on Qantas domestically and chase Classic Rewards, Qantas Amex Ultimate or ANZ Frequent Flyer Black are easy to justify, with the Amex winning on sheer earn rate and perks if the merchants you use accept it.

If you split between airlines or want to shop for award seats, Amex Explorer’s flexible points are king.

Then layer in your overseas and online spend. If you regularly buy in USD, EUR or JPY, a no-FX card like Latitude 28° or a bank card with $0 FX fees will pay for itself.

If you like a single wallet card, CommBank Ultimate Awards or NAB Rewards Signature keep FX fees at zero without giving up rewards.

Finally, be honest about fees and interest. Westpac’s Low Rate card sits at 9.90 percent p.a., which is dramatically kinder than most rewards cards if you ever carry a balance.

For everyone else, the golden rule is to clear the statement in full. The ASIC MoneySmart guidance is blunt for a reason.

The Perks Checklist You’ll Actually Use

• Travel credits are only valuable if you use them every year.
• The Qantas Amex Ultimate’s $450 credit is designed to offset the entire annual fee, while Explorer’s $400 credit nearly wipes its $395 fee.
• Lounge passes convert to real savings if you fly two to four times annually. Insurances require activation and eligibility steps, so set a pre-trip checklist.

Fees and Small Print to Watch Out For…

Key Facts Sheets are the truth serum.

They list purchase and cash advance rates, annual or monthly fees and late fees in a standardised format. Westpac, ANZ and CommBank publish theirs openly, and it’s worth grabbing the PDF before you apply so you know exactly what applies to you.

At-A-Glance Earn Highlights (For Hungry Point-Chasers)

Program	Strong options	Earn notes
Qantas Frequent Flyer	Qantas Amex Ultimate; ANZ FF Black; CommBank Ultimate Awards with Qantas opt-in	Up to 2.25 Qantas Points per $1 on Qantas purchases with Ultimate; up to 1.2 Qantas Points per $1 on CommBank to $10k per statement.
Velocity Frequent Flyer	Virgin Money Velocity High Flyer	Up to 1 Velocity Point per $1, with lounge passes and an annual voucher that’s easy to redeem.
Flexible MR points	Amex Explorer	2 MR points per $1 with a $400 Travel Credit that offsets the fee.

If you want outright points and perks, pair Qantas Amex Ultimate or Amex Explorer with a $0 FX card like Latitude 28° for anything priced in foreign currency.

Prefer to keep it on one plastic and still travel? CommBank Ultimate Awards or NAB Rewards Signature give you rewards plus $0 FX on a big-bank network. If you value a low rate above all else, Westpac Low Rate keeps costs down while you get organised.

And if you fly constantly and will use the benefits, Amex Platinum is the premium play that returns value through lounges, credits and status

DMARGE makes no commissions from any of the cards mentioned in this feature.