The credit card gurus from Mozo take a close look at the American Express Velocity Platinum Card. So how does it fare? Let's find out...

Who it's good for

The big spender who's a fan of business class, business lounges, and, yes, Virgin Australia. The new American Express Velocity Platinum Card takes off at an annual credit spend of about $50,000 a year – and is especially handy if you have close friends and relatives to give supplementary cards (with no extra annual fee).

Points are earned at a rate of 1.5 per dollar spent. Shopaholics take note: there's no cap per annum. And Scrooges will love the lack of expiry, meaning they can save rewards for rainy days (or Sydney-London flights).

How much you have to spend to earn a free flight

One Sydney to Melbourne flight eats up 9,800 points, requiring a spend of $6,533. Now, there are definitely better deals out there on the raw dollars to domestic flights equation – the Citibank Emirates Citi Platinum card is a contender – but you have to bear in mind the free domestic return flights every year that American Express throws in to the bargain.

The annual fee of $349 is definitely hefty, but should be more than offset by the various benefits.

Earning limits

Points aren't capped, and they don't expire. For the slightly disorganised big spenders out there, this is truly a blessing.

Balance transfer special offers

Astonishingly, there's no balance transfer offered on this card. Perhaps that says something about the kind of clientele courted by the American Express Velocity Platinum Card – those who don't have debts to transfer.

Needless to say, the interest rate on purchases is a whopping 20.74% – again, not for those who don't pay off the monthly balance. And 51 days interest free should help with that.

Other card benefits

The benefits are substantial, comprising not only the (platinum) usual of travel accident insurance and purchase protection, but also complimentary return domestic flights (each year), two single entry passes to the Virgin Australia lounge (each year).

And let's not forget the introductory offer of 30,000 points (if you're approved by September 30 and spend $500 in the first three months).

Business Class Flexi fares.

Perhaps the best 'reward' of this card is not a direct reward related to spending at all -- it's the ability to book Business Class Flexi fares with Virgin Australia's international airline, V Australia (including V Australia flights on Delta planes) and get two for the price of one.

The offer does not apply to flights sold on codeshare partners Etihad, Air New Zealand or Singapore Airlines.

The costs of using it overseas

The foreign exchange margin is 3%, which is fairly standard, but curiously there's no cash advance option – so you'll want to book those traveller's cheques in advance.

How it compares to other cards

This is a true platinum card (as opposed to the lite platinum out there in the form of Bankwest Zero Platinum, for example). If you're looking for similar benefits but spending $40,000 or less a year, the American Express Velocity Gold Card could be for you – with a significantly lower annual fee, for starters.

But for heavy spenders who spoil themselves and their partner with business-class domestic flights, the American Express Velocity Platinum Card will have to be tempting.

The free overseas travel insurance

The overseas travel insurance is provided by ACE Insurance, Sydney. 

The insurance cover only applies if the cardholder has purchased 100% of their travel fares on the American Express Velocity Platinum Card, or has booked it with Velocity Rewards points.

A cardmember, their spouse and a dependent child will also be covered, on the free annual return flight or two-for-one business class deal.

Some of the types of cover included are:

Transport accident cover, which provides coverage for major injuries or death while travelling overseas on a form of transport (plane, car, bus, etc.) Benefits range from $200,000 - $400,000 for one person only depending on the extent of injury.

Travel delays: after four hours, $200 in meals and accommodation. Same for missed connections (but no four hour delay period). For a luggage delay of six hours, $200 in emergency clothing and toiletries reimbursement. A maximum of $400 for the entire travelling party applies to each benefit.

Medical insurance only up to $1,500 without prior authorisation by ACE Insurance. Once approved coverage is limited to $2.5million. This is very poor medical coverage, because in the case of emergencies and accidents, costs can mount up to many thousands of dollars before you'll be able to get in contact with the insurer's decision maker. Insurers' 24 hour help-lines can generally not approve medical care until an underwriter is available during business hours.

Baggage/property insurance only up to $10,000 per person in any one year, with tight sub-limits such as $2,500 for a laptop computer, $250 for a mobile phone, or $1,000 for any other single item. Items will only be paid at their depreciated value based on age and the insurer's assumptions on previous wear and tear.

Cancellation costs coverage up to $12,500 per person, per trip, with some sub-limits such as $750 for any cancellation fees levied by travel agents.

Before you rely on the insurance on a trip, make sure you read the full insurance policy that comes with the card.

Who it's issued by

It's issued directly by American Express Australia.