Postcards from Perkistan

Released yesterday the Virgin Flyer credit card is only the second card with a direct-earn option with Virgin Blue’s Velocity Rewards program. All the major banks have a link with Velocity Rewards, but this is so the user can transfer their points and is not direct earn.

The spending limits on the card are a little funny at first inspection but clearly define the target audience. Earn 1 Velocity Point for every $1 you spend on the card up to $1,500 per month, and then 1 Velocity Point for every $2 after that. Earning 1 point per dollar is in line with other credit card rewards programs when redeeming for cashback and gift cards.

Each time you purchase a Blue Saver, Flexible, Corporate Plus, or Premium Economy ticket you will be eligible for a second ticket in the same booking class free providing there is availability. Free doesn’t include any extra costs for baggage and credit card surcharges. Limited to four sectors worth of travel per year. A nice addition to the card and ties in nicely with a family holiday.

If you register now and use your card before October 15 you will receive a free Go! flight. This fare is limited to routes that are 1,000km or shorter and are on a specific list in the terms and conditions. Major routes such as Melbourne-Sydney are included. The value of this fare varies, but on some flights this will offset the first year’s annual fee.

A balance transfer rate of 6.9% for 6 months is hardly comparable to other available cards on the market, with some even offering 0% interest for 6 months.

$99 per year? The fee isn’t justified when only evaluating the Velocity points-earning potential, but with the buy 1 ticket get 1 free I can easily see a way for frequent flyers to be offsetting that annual fee each year.

Visit the Virgin Flyer Website

Cheers,

Graham.

Ok so I’ve written already about my foray into the DJ’s Amex card. I now own one and am a big fan of their simple program. 

I have to however now tell you just how much punch their perks possess. I was just comparing DJ’s perks against my other credit card - National Australia Bank’s Gold Rewards Visa and the perk value could not be more marked:

NAB has a $100 David Jones Voucher so the comparison is straight down the line. 

NAB:
Points needed for voucher: 15,000
$1 = 1 NAB point
Therefore need to spend $15,000 to earn the voucher

DJ’s AMEX 
Points needed for voucher: 13,300
1st 6 months: $1 = 3 DJs points
After 6 months: $1 = 1.5 DJs points
Therefore need to spend *$4,433* to earn the voucher or $3,325 if you spend it in an actual DJs store in the first 6 months. After 6 months you need to spend $8,866 or $6,650 respectively.

That analysis highlights what commonly is called a no-brainer. Even under normal perk earning conditions it takes half the spend to earn a $100 voucher! in the first 6 months its up to 5 times as quick. Now you may say that if you add in interest rate differentials and differences in interest free periods it changes but not in this case…rates are line ball and the Amex has up to 56 days interest free…NAB can only muster 44. To top it off annual fees are the same.

Did I mention that I have received $150 in vouchers for just signing up?

Nice work DJ’s…easily the perk program of the month.