NAB nukes American Express credit cards

NAB nukes American Express credit cards

NAB is pulling the pin on its partnership with American Express, becoming the second of Australia's Big Four banks – after ANZ – to axe AMEX credit cards.

The bank's current 'combo card' rewards packages for Qantas and Virgin Australia frequent flyers – which pair a Visa card with an American Express card – will no longer be available from November 13 2017, while all NAB-issued AMEX cards will cease working as of February 21 2018.

NAB is blaming its decision on "new regulations from the Reserve Bank of Australia" which reduce how much banks can earn from each credit card transaction – and which in turn means a thinner margin for buying frequent flyer points to lure customers in and keep them on the hook.

NAB's card shuffle will also see a revamp of the points-earning proposition for it Qantas Rewards and Velocity Rewards (standard and premium) frequent flyer cards, with tiered rates replacing the current flat earning model for Qantas or Velocity points per dollar.

From 13 November 2017 the earn rates across both the Qantas Rewards and Velocity Rewards cards will be

  • 1 point per $1.50 up to a $3,000 spend per statement period
  • 1 point per $3 from $3,001 to $6,000 per statement

That speed bump at the $3,001 mark halves your earn rate will put the brakes on big spenders building up their points balance, and every dollar you put on the new NAB cards beyond $6,001 per statement will earn you zero points.

Swinging the numbers around, the new NAB earn rate is revealed as 0.66 points per dollar up to $3,000 per statement, and 0.33 points per dollar for $3,001 to $6,000 – which translates to a monthly cap of 2,970 Qantas or Virgin Australia frequent flyer points.

Note that those earning rate changes apply only to the Qantas Rewards and Velocity Rewards branded cards which are today paired with an AMEX.

Other cards in NAB's portfolio – the Qantas Rewards Signature Card launched earlier this year, NAB Rewards Classic, Platinum and Signature card family (with points which convert to Virgin Australia, Air New Zealand and Cathay Pacific) and NAB Flybuys Rewards Card (with points which convert to Virgin Australia and Etihad) – retain their current earn rates.

Additional reporting by Chris Chamberlin

David Flynn

David Flynn (David)

[email protected] / @djsflynn

David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
 

6 Comments

  • 346

    346

    10 Oct, 2017 03:05 pm

    NAB Qantas Rewards Signature Card is my go to for when AMEX is not accepted - 1pt per $ up to $5K.
    amex explorer or platinum charge for when it is
    No member give thanks

  • smoothsilver

    smoothsilver

    10 Oct, 2017 06:46 pm

    How on earth is it that I find out about this through ABT and not through a courtesy email from NAB? Astonishing.
    Members who gave thanks

    Jflyer, ssmith3104, BrettHumphreys

  • JacobW

    JacobW

    11 Oct, 2017 06:25 pm

    I didn't get an email or any communications when they cut earn rates a few months back at all. Learnt about it through AusBT too
    No member give thanks

  • Alan Whittington

    Seagull

    10 Oct, 2017 07:15 pm

    Good point smoothsilver. By co-incidence I cancelled our NAB Platinum cards (Visa and Amex) today as I'm using ANZ FF Black even though all my other banking is with NAB. Just have to decide in 6mths whether to go back to NAB for bonus offers or stick with ANZ FF Black
    Member who gave thanks

    smithrhy

  • john hauser

    talkscheap

    11 Oct, 2017 07:31 pm

    so the NAB AMEX per statement period earn used to be 1.5 points for $10K per month, then they cut it to 1.0 point for $5k per month, now its .66 points for $3K per month. I am going to cancel my NAB cards as AMEX have today increased my credit limit to match NAB ($38k) and I earn 1.5 points no limit and I have a Virgin Money Visa ($35K limit now) which is 1.0m point per $10K statement period. Nab have lost a 32 year customer and I wont be back. Smart move NAB, very smart
    No member give thanks

  • Colin Steven

    colin5353

    11 Oct, 2017 09:23 pm

    nab now have a updated link on their credit card info page.
    No member give thanks

  • Traveller14

    Traveller14

    21 Oct, 2017 12:57 pm

    colin5353, nab has an obligation to write to the many customers who receive statements by mail. I still have not received a letter from it.
    No member give thanks

Guest

24 Oct, 2017 12:53 pm

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