06.How we calculated
To calculate the total rewards value in a given category, we
- Divided the number of points needed for a sample of rewards in the category by the dollar value of those rewards, which gives us the number of points needed for $1 reward value.
- Then calculated how much value you would get from your total annual reward points depending on your monthly spending level, and deduct the total annual fee (including annual card fees and rewards program fees if a separate fee is charged) from the total amount.
- The result is the dollar return on a card after fees.
We looked at the standard points earned, which doesn’t include bonus points or promotional point offers. Point conversion rates and any point caps were taken into account.
These are the sample rewards we used:
Shopping voucher $50 voucher for a department or large store (David Jones, Myer) and $50 voucher for another store (Bunnings, Officeworks). Higher points can be earned by shopping at the retailer: David Jones rewards shoppers with two points within the store compared with 1.5 points outside; Woolworths, two points in a Woolworths-owned store (includes Woolworths Liquor, Dick Smith and Big W) and three points for Woolworths Select products, compared with one point outside; Myer, three points in store compared with one point outside (Myer has a cap of a maximum of 2000 points per month earned outside its store).
Cash rewards $50 and $100 cash reward.
Frequent flyer Total of QFF or Velocity points for four return, economy-class flights spread over peak, off-peak and shoulder seasons, and booked three months in advance using standard-point options without taxes and charges. The flights used were Sydney-Melbourne, Melbourne-London, Brisbane-Auckland and Sydney-Bangkok.