Rewards and Cashback Credit Cards (August 2024) (2024)

Summary of Reward Credit Cards

• Reward credit cards and their points are near impossible to compare - would you rather have 100 hotpoints, 100 truepoints, 100 onepoints or 100 Airpoints?
• The most suitable reward card for your needs comes down to what you spend in a year and your priorities. If you spend under $5,000 a year on a credit card, you most likely won't earn enough rewards and make it worth it and it's best to get alow-fee credit card.
• However, if you're comfortable putting general everyday expenses (supermarket, petrol, power bills, internet etc) on your credit card, many New Zealanders can benefit from cashback and/or rewards with the right credit card.
• But, if you struggle to repay a credit card, look for a low-interest rate credit card instead - any rewards you would otherwise earn are nothing compared to the higher interest charged on your purchases.
• If you're looking to earn points forbusiness class flights, they are available, but you'll most likely need an AMEX - our dedicatedCredit Cards That Earn Business Class Flightsguide has more details and everything you need to know tomake it possible.
• AdvertisingDisclaimer:We have acommercial relationship with some banks and credit card issuers (please see our Advertising Policy for more details about how we make money) and we may be paid if you apply for a credit card via MoneyHub. We strongly suggest refraining from applying from any credit card if you currently have outstanding balances owed.
• ​Update:For theAmerican Express Airpoints Platinum card, the current $59 spend = 1 Airpoints Dollar rate is valid until 2nd October 2024. From 3rd October 2024, the rate will change to $70 spend = 1 Airpoints Dollar. For the purposes of this guide, we have used the 1:70 rate.

Know This First - Are Cashback or Reward Credit Cards Right for you?

• ​Spend on a Rewards card and you’ll get cash or vouchers you can use on shopping, activities and travel. The amount of rewards you get is driven bywhich card you pickandwhat you spendon the card. Basic cards (with lower fees) earn less rewards than high roller cards that have hefty annual fees.
• But, a rewards card is still a credit card and needs to be paid off. If you don't,the interest fees will exceed any rewards or cashback.

Our guide takes you through the best cards for different spending levels, making it easy to find one that rewards you hundreds of dollars a year. We cover:

• The TenSacred Rules of a Credit Card
• Best Reward and Cashback Credit Cards
• ​Frequently Asked Questions

Our View: Rewards and Cashback Credit cards are best for:

1. People who have an income of at least $35,000 per year and pay off a credit card every month. If you have a lower income or don't consistently repay, a balance transfer or low-interest credit card may be more suitable to help you reduce costs.
2. Couples who spend significantly on their credit card but don’t want to have an Air New Zealand Airpoints credit card.​
3. We estimate that a couple spending $30,000 a year on a credit card could be entitled to around $500 of awards (travel and cashback), but selecting the right card is essential to maximise the benefits.

Are you looking for an Airpoints credit card? Things have changed fast if you currently have a bank-issued credit card:

• Some banks are cutting back, attempting to cut back or overhauling what they offer per dollar spent, known as the 'earn rate'. Kiwibank announced this on 4 October 2022 and the level of rewards have greatly diminished across all of its Airpoints Dollars-earning credit cards.
• In September 2022, ASB announced a plunge in their credit card rewards and earn rates (which was reversed - for now - per this Stuff.co.nz column) while the BNZ is offering 'points' rather than cashback. We expect other banks to follow.
• From November 2022, law changes cap interchange fees at 0.80% on Visa and Mastercard credit card transactions. This means that the banks can only charge merchants who accept credit cards 0.80% of the transaction value, which we argue limits the rewards, cashback and general perks they can offer to cardholders.
• American Express cards are not affected as the law is designed to break up the Visa and Mastercard duopoly. As bank-issued credit cards become less 'generous', we anticipate American Express cards will become more favourable for anyone looking for rewards, whether that be Airpoints Dollars, cashback, awards or statement credit.
• Important: We will update our tables below when all the banks have finalised their new offerings. We don't expect to make any changes to the American Express credit cards given they're not affected by the new legislation.

Know This: Are you a business owner?
You can now use your AMEX to pay IRD and ACC bills using RewardPay. Our review explains how it works, what it costs and what benefits you will earn. As American Express' Platinum Card and American Express Gold Rewards Card earn Membership Rewards Points, they are popular with business owners or directors who can use their card to pay business costs and earn points for personal use.

The Ten Sacred Rules of a Credit Card

Best Reward and Cashback Credit Cards

Our shortlist below includes credit cards from ASB, BNZ, ANZ, Westpac and American Express.

Know This:

• Our view is that bank-issued cash back and rewards credit cards offer a much lower level of rewards and cashback when compared toAmerican Express.
• Our list of cards below makes this clear - all bank-issued rewards and cashback credit cards have annual fees, meaning you'll need to spend $4,000 - $10,000 per year just to earn enough cashback to cover the annual fee. Rewards are even less enticing - spending $1,500 to have a $10 voucher is, sadly, the norm.

Why are American Express Rewards and Cashback Credit Cards More Generous?We presume there are two main reasons:

1. Firstly, banks have direct distribution to customers so they don't need to be as competitive, whereas American Express is an online provider and hasto compete on benefits and price.
2. Secondly, American Express chargesmerchants (i.e. supermarkets, petrol stations, power companies) a higher commission relative toVisa and Mastercard. This doesn't affect what an American Express cardholder pays, but it does boost the cashback and reward earning rates compared to bank-issued cards as there is more money to 'give back' by way of rewards and cashback.

An example of cashback and rewards explains the differences better:

• Rewards:To earn a Breville Waffle Maker (RRP $100 - $120), anAmerican Express Airpoints Cardcardholderneeds to spend around $13,000 on their card before redeeming it from the Airpoints store. This card has no annual fee andeffectively offers 1 Rewards Dollar for every $100 spent. To earn the same Waffle Maker with the ASB Rewards Visa, Westpac Hotpoints Mastercard or Warehouse Purple Visa, you'd need to spend $18,000+ and also pay the annual $40 - $55cardholder fee on top.

Best Cashback and Reward Credit Cards Available Right Now

• We're frustrated with the low level of rewards and cashback offered by banks. We don't think being charged $40+ a year to have a rewards credit card that only gives you a $10 voucher for spending $1,500 to $2,000 is a good deal. Sadly, it isthe norm.
  
• Our research concluded that three American Express cards offered significantly better rewards and cashback, which we list below. There is also one bank card, the SBS Credit Card Visa, which offers 67 cents cashback for every $100 spent and has no annual fee.
  

Best Cashback Earning Rate from a NZ Bank - TSB Platinum Mastercard

More Details: TSB Platinum Mastercard

The Basics:

• Annual fee of $90, $8,000 minimum credit limit
• Tap & go for purchases under $200
• Premium insurance cover (outlined below) included for qualifying purchases

​The Need-to-knows:

• Interest rate: 20.95% p.a
• Interest-free days:55
• Bonus/Rewards: $1 cashback with every $100spent
• Free Domestic & Overseas Travel Insurance: Pre-pay at least 50% of your travel expenses using your card and you may be eligible for travel insurance.
• Purchase Protection: New items purchased with your card for personal use may be protected against theft or accidental damage for 180 days from date of purchase.
• Mobile Phone Protection: When you pay your monthly mobile phone bill using your card you may qualify for mobile phone insurance for accidental damage or theft.
• Monthly payments:Must be above the monthly minimum (either 5% or $10of the closing balance owing - whichever is greater)

Alternative Cashback and Reward Credit Cards

Beyond American Express and TSB, a number of banks such as ANZ, ASB, BNZ, SBS and Westpac, offer rewards and cashback credit cards. We list these below.

Know This: All the cards listed below have annual fees. This means you have to pay to have the credit card, and this will affect your 'net' cashback or rewards. For each card, we have illustrated how much a cardholder needs to spend tocover the annual card fee to show you the true cost of a cashback or rewards card.

SBS Visa Credit Card - get back 67 cents for every $100 you spend on the card with no annual fee

More Details: SBS Visa

The Basics:

• Thisonly free credit cardoffering cashback, you'll get back 67 cents for every $100 you spend on the card.
• The higher-than-average interest rate is best avoided by anyone who struggles to pay off their monthly balance.

​The Need-to-knows:

• Interest rate:19.65% p.a
• Interest-free days:55
• Bonus/Rewards:$1 Cashback for every $150 spent on the card
• Monthly payments:Must be above the monthly minimum (either 5% or $10of the closing balance owing - whichever is greater)

Cashback and Reward Credit Cards - Frequently Asked Questions

Will these cards and their reward levels be valid next year, or the year after?

• We keep this guide fully up to date, butwe cannot predict future credit card offers. Our experience has shown that reward earning rates (i.e. $1 per $150 spent) seldom change on a card, but the number of points required for rewards in programs such as HotPoints and PurpleDollars is subject to change (for better or worse) as new products replace older ones.
• Annual fees canchange - for example, in 2019, The Warehouse introduced an annual fee of $55 to its Purple Visa card, which had beenpreviously advertised and sold to consumersas fee-free.
• Our advice is to take advantage of the benefits by applying for the credit card that suits your needs.
• Reward offers like “spend on a credit card and earn an iPhone”, but the reality is that would require you to spend $300,000 or more. Our advice is to think small when it comes to reward cards, and nothing beats cash.

What is the difference between "Cashback credit cards" and “Rewards credit cards"

• "​Cashback" credit cards are simple – you earn 0.5% or 1% every time you make a purchase on the card, and you get paid out once a year with the amount taken off your credit card bill. The advantages are that you know exactly what you’re earning and you get a direct financial benefit by way of savings on your annual spend.
• “Rewards” credit cards are similar to cashback, but more complicated. With a rewards card, you earn points or reward dollars every time you spend, which you can convert to gift vouchers to use in a certain retailer or for a specific purpose. You have to use the vouchers to make the Rewards card work, otherwise it’s not worth the annual fee.
• By correctly targeting the right rewards to redeem your points on, it's possible to increase to amount substantially. To find out how to do this for all schemes and specific info for Nectar, Avios and Tesco, read our Boost Your Loyalty Points and Avios Boosting Tricks guides.

I spend under $5,000 a year? Which card is best to get rewards and not overpay in fees?

• The most suitable card is the Warehouse Purple card which is free. $5,000 spend will give you $33 in Warehouse vouchers, giving you the benefit of the convenience of a credit card without an annual fee.
• Alternatively, the AMEX free Air New Zealand credit card is a free-fee card offering $1 Airpoints per $100 spent. You will need to operate an Airpoints account however, and fly Air New Zealand annually to avoid anannual $30 fee.
  

How does American Express/AMEX work in New Zealand? Can I use it widely?

To help determine the acceptance of AMEX in New Zealand and highlight the general feeling from local cardholders, we've pasted a selection of reviews from Reddit members that appear on various PersonalFinanceNZ posts. We include these to help you decide if an American Express credit card is right for your needs:

• "Definitely worth having in NZ; you can use it at most petrol stations/supermarkets/retailers. Have a backup (debit) card for everything else".
• "I have had my AMEX for a few months now, and acceptance is not that bad. Almost all big chains accept it, higher-end restaurants, most online shopping (or you can funnel via PayPal), and I can even pay my phone, internet, and power bills with it. However, smaller shops/cafes are unlikely to take it, so I have to bust out my visa debit card occasionally".
• "I haven't run into any Amex-specific surcharges. Instead, I found that either a business will have a blanket credit card surcharge or, in some cases, a paywave surcharge".
• "I've had my Amex Airpoints Platinum for 3+ years, and I'm pretty happy with it. I use it for everything I possibly can to build up as many airports as possible. I use it as I would use my debit card and then pay my bill off every month on time. I've already got flights to Fiji out of my points and currently letting points build up for flights to Europe".
• The $195 card fee is a lot, but if you use it enough and build up your Airpoints Dollars, it's well worth it".
• "They have nice service. For example, I got double charged once in a store, reported it to AMEX, and got the refund immediately after the call".

Related Guides

• Best Credit Cards
• Our Favourite Debit and Credit Cards
• The Best American Express Credit Cards
• Free Credit Cards
• Air New Zealand Credit Cards
• American Express Credit Cards Review
• ​Credit Cards That Earn Business Class Flights
• ​RewardPay Review