Virgin Australia Velocity Flyer Credit Card

My rate: 
17%
 
My annual fee: 
$90
 
Transfer: 
$20,000
 
From: 
All banks
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Offer
Card features
balance transfer
purchase rate
annual fee
Money saved
Save money with 0% p.a. for 18 months on balance transfers. (Reverts to cash advance rate)
Earn 3 bonus Velocity Points on top of the standard earn rate for the first 3 months.
$129 Virgin Australia Gift Voucher each year.
Add to comparison
18 months
0% p.a.
then 20.99%
20.74% p.a.
ongoing
$64
1st year
then $129

Pros & cons

What's good?

What's not so good?

Save money with 0% p.a. for 18 months on balance transfers.
Earn 3 bonus Velocity Points on top of the standard earn rate for the first 3 months.
$129 Virgin Australia Gift Voucher which cardholders get each year.
Half year annual fee of $64 p.a. for the first year.
Personal Concierge Service.
Pay faster at the checkout using VISA payWave.
After the balance transfer has ended any unpaid balances revert to the 20.99% p.a. cash advance rate.
After the promotional period, points earn rates revert to the standard 0.66 pt per $1 spent before spend threshold, and 0.5 pts per $1 spent after.

Our review

Our review of the Virgin Australia Velocity Flyer Credit CardReviewed by Yvonne Taylor

Virgin Australia is making significant changes to its credit card range issued through Virgin Money. The major areas affected are the Velocity points earning rate and the reduced price Virgin Australia flights benefit. Nevertheless, the Virgin Australia Velocity Flyer Credit Card retains its status as one of the less expensive ways of earning Velocity points – especially considering the additional benefits like bonus points, a little insurance cover, a Virgin Australia travel voucher and a handy zero interest balance transfer offer.

Accelerated points earning for the first 3 months

Even if you already are a Velocity Frequent Flyer with points in your account, you will appreciate the opportunity to get off to a flying start (pun intended) by earning 3 bonus points on top of the standard earn rates.

However, the spending must be on actual purchases, not cash advances, balance transfers or interest charges.

But once you hit the $1,500 monthly threshold the base earn rate drops to 0.5 Velocity points per dollar spent.

Here’s an example of how this works. If you get the card and spend $1,000 on retail purchases you would earn 660 Velocity Points when your spend is within the first $1,500 in the statement period. Add to that the 1,000 Points you get from spending $1,000 on a few flights with Virgin Australia. Then add on to that 4,000 Points you get from 2 bonus points on the $2,000 spend in your first 3 months of having this card and that’s a total of 5,660 Velocity Points. That’s good. In the short term, it helps to soften the blow of Virgin reducing the normal base earn rate of points.

A $129 Virgin Australia gift voucher every year

The old reduced price flight benefit been replaced by a simple travel voucher.

Now cardholders will get 1 x $129 Virgin Australia gift voucher each year that you use your card to make at least one retail purchase. The voucher can be used for any flight or fare type, including sale fares, as well as selected Virgin Australia holiday packages. It’s possible to get a sale fare between Melbourne and Brisbane for $135, so by using the $129 voucher you would have only $6 left to pay! That’s six bucks … or two coffees!

0% p.a. balance transfer offer for 18 months

If you currently have unpaid balances on one or more of your existing credit cards, you can take advantage of this generous balance transfer offer. Transfer the balances (up to 80% of credit limit of your approved credit limit) to your new card, and pay no interest at all for 18 months. It’s not the longest period available on the market (some cards offer 20 or 24 months) but it’s certainly long enough to let you either save or make a reasonable amount of money.

  • Save money, even if you have an unpaid balance you could afford to pay off at once. Put that same $4,000 in a 5% p.a. mortgage offset account for 14 months and reduce your mortgage interest charges by $240.
  • Make money if you don’t have a mortgage offset account, by putting the $4,000 in a 3.5% p.a. savings account to earn $166 in interest.

Choosing the balance transfer option will mean that you won’t want to use your new card as a purchase card for the first 18 months, because that unpaid balance would cancel out your monthly interest-free days Up to 44 days on purchases. Any purchases you made would have interest charged on them from day one. So having an unpaid balance transfer would mean missing out on earning Velocity points until you could once again use the card for purchases, and you’d have to sacrifice the first purchase bonus points altogether.

Also be aware that any remaining balance left unpaid at the end of 18 months will start costing you interest at a whopping 20.99% p.a. This is the cash advance rate, which, along with the purchase interest rate of 20.74% p.a., is a fairly normal rate for a credit card. Escape paying these high rates by avoiding both cash advances and overdue purchase balances.

Some limited insurance cover

This is Virgin Australia’s basic Velocity points card, so you’re not going to get the international travel cover and other wide-ranging insurance benefits that come with the more expensive Virgin Australia Velocity High Flyer Credit Card. But you will get these two polices:

  • Transit Accident Insurance: Pay your fares (and that of your accompanying immediate family, if applicable) with the card, and receive a cash compensation for death or serious injury sustained while travelling overseas as a passenger in a plane, bus, ferry or train.
  • Guaranteed Pricing Scheme: Make a purchase with the card from a store (not online) and receive a refund equivalent to the price difference if the identical product is advertised in a printed catalogue at a lower price, within 25 kilometres, up to 60 days later. (Minimum claim $75, maximum claim $500.)

Visa benefits

Some of the advantages accompanying this card come courtesy of Visa rather than Virgin. They include:

  • Visa concierge service: A virtual personal assistant online or by phone, anywhere in the world, for restaurant, theatre, travel and entertainment bookings and recommendations
  • Visa Entertainment: Pre-sale access to tickets for the best shows in town
  • Visa payWave: Fast and easy contactless payments under $100
  • Verified by Visa: A one-time password delivered by SMS for online shopping, to add an extra level of security
  • Visa Checkout: Optional enrolment to simplify and speed up online shopping by storing your card and shipping details
  • Visa Zero Liability policy: You won’t be held responsible for fraudulent or unauthorised use of your card, but do advise your card issuer at once if it’s lost or stolen. (This comes in addition to the Fraudshield service provided by Virgin Money, the card issuer, which advises you of any irregular or suspicious transactions on your account.)

What makes the Virgin Australia Velocity Flyer Credit Card a good fit?

If you’re already a Velocity Frequent Flyer and committed to flying Virgin Australia (and who wouldn’t be, given the realistic fares?) you may want to keep your credit card spending in-house and earn even more points towards your next flight. Faced with a choice between Virgin, AmEx and NAB, it comes down to a question of cost versus benefit.

The points earning rate on this Virgin card is not as good as it used to be thanks to industry wide changes. Both NAB and AmEx offer a basic card with a lower annual fee than the Virgin card, but neither of these cards comes with an annual $129 gift voucher, putting you $65 ahead in the first year and making the card effectively free thereafter. Even when the introductory offers have expired, it’s a free card with points and a bit of insurance. Win win.

User reviews

4.0 out of 5.0 based on 14 reviews79% of reviewers would recommend this card

Rates and fees
Rewards
Customer service
Convenience
Trust

Reviews from users

Bonus rewards, low fees

Reviewed and recommended by Scott on 06 Dec 2016

It’s a simple credit card with an easy rewards system. You can link payments from other Virgin services to earn bonus rewards, and it has a low annual fee and low late payment fees.

Virgin will call you if you miss a payment and help you if you need it. Sometimes they will even reverse the late payment fee.

Generally very pleased with this card

Reviewed and recommended by Michael Freed on 14 Jul 2015

Overall, this is a good value card with a low annual fee. The Velocity reward points accumulate quite quickly, which combined with frequent travel, makes the reward program useful. 4 free partner flights a year is a great bonus.

Would be nice if they didn’t charge for a companion card for the wife.

At least you get something back

Reviewed and recommended by Linda on 20 Sep 2016

I have been a Virgin Velocity Flyer card member for many years and have enjoyed multiple flights across Australia with the Velocity scheme. I pay my card off in full every month and am not concerned by the high interest rate.

The customer service has been excellent, as has the overall security service.

Virgin Rewards out the window!

Reviewed and recommended by No longer flying. on 01 Apr 2014

I got this card because of the attractive flight deals where you got four free flights a year but Virgin has changed their policy and prices. It is cheaper to buy my flights on-line with other airlines rather than use the reward program. Plus having to call and organise the flights rather than do it yourself online means long delays and you have to book nearly a month in advance. No longer happy with this product.

Good rewards program

Reviewed and not recommended by Anonymous on 08 Oct 2014

Who doesn’t like getting rewards for their purchases? Use this card to make purchases online and you’ll get points to redeem for gift cards. Awesome! Like most new credit and debit cards now, chips are being integrated to enable convenient use of the PayPass/PayWave feature in store (which chooses credit from your account anyway – so there’s no need to enter a pin for purchases less than $100, so you could split your transactions).

One of the best travel buddies you can have

Reviewed and recommended by Susie on 15 Jul 2015

I love to travel and I consider my Virgin Velocity Visa card as one of the best travel buddies I have. Not only do I earn Velocity points while I’m travelling, I also have the peace of mind that all my transactions, whether at home or overseas, are being monitored so that if anything looks odd, they can contact me – no nasty surprises when I get my statement. Well, other than the shock when I see how much I have spent!

Racks up big points with Virgin

Reviewed and recommended by Saddle on 01 Aug 2013

This card is great as it racks up big points with Virgin which is a great airline. It has a $100 annual fee but if you use it for some work purposes your company should pay the annual fee. The paywave function is fantastic as it makes every transaction quick and easy. Customer service has been great.

I came for the 0% balance transfer

Reviewed and recommended by Georgie on 01 Apr 2014

I originally came to the Virgin credit card on a 0% balance transfer. I have found them to be extremely helpful and every time I call they have another offer for me, which has helped me immensely! I will certainly continue with this credit card in the future and have recommended it to my friends!

Velocity points made 21st birthday gift possible

Reviewed and recommended by Railea on 21 Sep 2016

I wanted to somehow save enough money to send my daughter overseas for her 21st birthday. Being able to accumulate Velocity points has made that possible.

My Virgin card means I always have someone in service to talk to, who can help me out, and their interest rates are on a par with anyone else’s. Virgin all the way for me.

Lovely card and very handy

Reviewed and recommended by Tony Glenn on 16 Jul 2015

I got this card for a balance transfer and it has been very useful to me. The payWave feature saves me time as I don’t have to remember a PIN. The Virgin Money people have been helpful when I have wanted a balance or other enquiry about my card. Plus it is a low interest rate card.

Show 4 more reviews
Disclaimer: The opinions expressed about credit cards are the reviewer's alone, and do not reflect the views of Credit Card Compare or the credit card issuer. Reviews have not been approved or otherwise endorsed by Credit Card Compare.

The basics

About this card

Card setup
Single
Card tier
Platinum
Card type
Visa
Card use
Personal
Credit rating
Good
Gambling transactions allowed
No
Joint application
No
Minimum age
18 years old
Minimum income
$35,000
Minimum income for pensioners
$Same as standard
Pensioners
Rewards program
Velocity Frequent Flyer
Temporary residents
N/A

Cardholders

Additional cardholders
4
Additional card fee
$39 p.a.

Credit limits

Minimum credit limit
$6,000
Maximum credit limit
$30,000

Repayments

Interest charged from
Statement date
Interest free period
Up to 44 days on purchases
Minimum repayment
2%

Balance transfers

The offer

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.18 monthsN/A80% of credit limit20.99% p.a.

Balance transfers to this card

Balance transfer earns rewards
No
Balance transfer fee payment due
First statement
Balance transfer from personal loan
Yes
Balance transfer processing time
10 - 14 days
Interest free days with unpaid balance
0 days
Maximum balance transfer
80% of credit limit
Available to existing customers
No

Banks you can't balance transfer from

You can't balance transfer to the Virgin Australia Velocity Flyer Credit Card at the promotional balance transfer rate from:

  • Bank of Queensland
  • Virgin Money

Rates & fees

Promotional interest rates

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.18 monthsN/A80% of credit limit 20.99% p.a.
PurchasesN/AN/AN/AN/A N/A

Ongoing interest rates

MonthlyAnnually
Cash advances 1.75% 20.99% p.a.
Purchases 1.73% 20.74% p.a.

Fees

Annual fee
$64 p.a.
Annual fee 2nd year
$129 p.a.
Cash advance fee
2.7%
Dishonour fee
$15
Duplicate statement fee
$7
Foreign exchange fee
3.3%
Late payment fee
$10
Over limit fee
$40
Overseas ATM balance fee
N/A
Overseas ATM withdrawal fee
$5
Overseas emergency card replacement fee
N/A
Transaction verification fee
$7

Rewards & points

Cool stuff you can get with your points

Disclaimer: Does not include taxes, fees, or charges. Accurate as of 25th January 2016.

Rewards program basics

First purchase bonus
N/A
Reward points expiry
Never as long as you keep your account active
Rewards program
Velocity Frequent Flyer
Sign up bonus
N/A
Spend required for bonus points
$5,000 in 3 months

Earning points with this card

Frequent flyer points
0.66 pt per $1 spent
Overseas earn rate
Same as standard earn rate
Points cap per month
Unlimited (Reduced after $1,500)
Points cap per year
Unlimited
Points earned on ATO payments
N/A
Reward points
0.66 pt per $1 spent

Additional benefits

Airport lounge access
No
Complimentary flight voucher
No
Concierge service
Yes

Benefits

This card comes with benefits worth an estimated $160

ShoppingEstimated value
Guaranteed pricing / price protection insurance
Valuation based on the assumption of making a $100 claim once every 10 years. Extensive conditions apply. There is no retail market for this type of insurance, so no premium saving.
$10
Travel
Transit accident insurance
Valuation based on similar global transit accident insurance policies available online.
$150
Total estimated value$160
Annual fee$64
Net customer value$96
Disclaimer: Details of who, what, and where coverage applies to, as well as its duration and any coverage limitations will be listed in the credit card insurance product disclosure statement (PDS) on the card issuer's website. The names/labels of complimentary insurance products may differ from one issuer to another. Terms and conditions apply. Always check the insurance PDS when considering a financial product. Accurate as of 31st October 2015.

Minimum criteria for this card

What you need before applying

Be over 18 years old
You are a resident or citizen of Australia
Earn a regular income of more than $35,000 per year
Have a good credit history
You have your personal details ready to complete the online application
Have not applied for multiple credit cards recently
Joint applications are not allowed
Age Pension, Disability Pension, Overseas Pension, Veteran's Pension and Widower's Pension are acceptable.
Austudy, Carer's Allowance, Child Support Payments, Family Tax Benefits and Parenting Payments and Foster Care Allowance are acceptable.
Youth Allowance is not acceptable.
Disclaimer: The minimum criteria pointers are intended only to be a guide. Your application may still be rejected by the bank even if you can answer 'Yes' to all the minimum criteria. The final decision regarding your application is up to the bank.

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