The American Express Velocity Escape Credit Card is a rewards card that is tied to the Virgin Australia frequent flyer program, known as Velocity. Holders earn Velocity points for every dollar spent on the Amex Velocity Escape card, which can then be redeemed for travel bookings and other purchases via Virgin Australia.
As the perks are all related to Virgin Velocity, it is redundant to take out an Amex Velocity Escape card unless you are a frequent flyer with Virgin Australia.
Pros
- No annual fee
- Earn Velocity points for every transaction
- Four additional cardholders at no extra cost
Cons
- High interest rate
- 3% international transaction fee
- Perks are only beneficial to Velocity members
Table of Contents
About American Express Credit Cards
American Express is, as the name suggests, an American financial services company headquartered in New York City. American Express specialises in credit cards, which are commonly referred to as an Amex card.
The company was founded all the way back in 1850, where it began as an express mail dispatcher and grew to become one of the most valuable companies in the world. While it had been available to use in Australia for quite some time, the first American Express Australia card was only issued in 1974.
Now, in 2023, American Express offers Australians 10 different Amex cards. These are:
- American Express Platinum Edge Credit Card
- American Express Platinum Card
- American Express Explorer Card
- Qantas American Express Premium Card
- American Express Essential Credit Card
- Qantas American Express Ultimate Card
- Qantas American Express Discovery Card
- American Express Velocity Escape Card
- American Express Velocity Platinum Card
- Low Rate Credit Card
This review will focus on the American Express Velocity Escape Card, which has received an average customer rating of 3.5 stars from 10 reviews on Australia’s leading consumer opinion site, ProductReview.
American Express Velocity Escape Interest Rates
The interest rate charged on purchases with the Amex Velocity Escape card is 21.99%. This is also known as the purchase rate and, according to financial experts, less than 15% is considered an OK percentage.
This means the Amex Velocity Escape Credit Card has a much higher than ideal interest rate. It does have a good interest-free period however, which is 55 days. This means if you make a purchase and pay it off within the 55 day period, you will not be charged the 21.99% purchase rate.
Along with a purchase rate, some credit cards have interest rates for cash advances as well. The American Express Velocity Escape Credit Card does not offer cash advances, and therefore does not have an interest rate for cash advances.
Fees and Limits
It’s important to understand the fees and limits of a credit card before investing, so you can make sure you stay on top of your repayments and additional costs in order to avoid debt. The fees of the Amex Velocity Escape card are explained below.
Is There an Annual Fee?
The American Express Velocity Escape card boasts a 0% per annum annual fee, meaning you don’t have to pay anything annually to be a cardholder. There are other additional fees to be aware of, however.
Additional Fees
While some credit card lenders charge for additional cardholders on some products, the Amex Velocity Escape can have up to four additional cardholders at no extra cost.
Amex does however charge a $30 late payment fee; a $6 payment dishonour fee (if a direct debit does not go through); a $3 over the counter fee, which may be charged by some merchants; and a $7 record for charge fee.
If you choose to use your American Express Velocity Escape card overseas, you will also be subject to a 3% international transaction fee which will be calculated from the converted rate.
What are the Credit Limits of the Amex Velocity Escape card?
The Amex Velocity Escape card has a wide range between its minimum credit limit and its maximum credit limit, which isn’t unusual for premium credit cards like American Express.
The minimum credit limit means that is the lowest you can set your limit too, which is $2000. The maximum credit limit is the maximum amount of credit that Amex will provide its Velocity Escape card holders, which is $25,000.
Are Balance Transfers Offered?
Some credit card providers offer balance transfers, in which you move the amount you owe on one card (which could be from a different institution) to another. This feature is not available for Amex Velocity Escape cardholders.
Amex Velocity Escape Extras and Offers
Being able to borrow money isn’t the only reason Australians choose to take out credit cards, as nowadays there are plenty of other perks and benefits on offer.
While Amex Velocity Escape holders won’t receive cash back promotions or complementary insurance, they do get the added benefit of earning frequent flyer points for every dollar they spend.
Is Amex Velocity Escape a Rewards Card?
Due to the point-earning system, Amex Velocity Escape is considered a rewards card.
Rather than earning points to be redeemed for monetary value, card holders earn Virgin Velocity Frequent Flyer points to put towards upcoming travel or redeem for gift vouchers and more.
When using the credit card, Velocity Escape holders earn 0.75 velocity points per dollar if shopping with a non-government body, and 0.50 velocity points when shopping with a government body.
If using the card to shop with Virgin Australia–whether to buy flights or wine–Velocity Escape card holders will earn 1.75 Velocity points for every dollar spent.
While some rewards cards cap how many points you can accrue, there is an uncapped earning potential with the Velocity Escape card.
Unlike some other frequent flyer rewards cards, the Amex Velocity Escape does not offer complementary flights or lounge access.
Who Is the Card Suited For?
The Amex Velocity Escape card is best suited for Virgin Velocity members, as the reward system with the card allows borrowers to earn Velocity points which can be used to purchase flights, upgrade to business and buy other items via Virgin Australia.
Often, rewards cards have higher interest rates in exchange for their perks, and the Amex Velocity Escape is no exception. Its interest rate is 21.99%, which is quite high compared to the other credit cards that Forbes Advisor reviewed.
However, holders of the Amex Velocity Escape card can avoid the high interest rate if they pay off their monthly balance before the due date.
Note: It is critical to fully understand the terms and conditions of a credit card agreement before applying. Though we recommend no one ever carry a balance if it can be avoided, it’s particularly important with rewards credit cards as interest rates are generally higher. Any interest charges on a balance will quickly wipe out the value of any rewards earned.
Frequently Asked Questions (FAQs)
Which Amex card is the best?
American Express cards are a popular choice in credit card, with many different options available to Australians. Each card varies in its benefits, fees, interest rates and credit limits, meaning there’s no one size fits all when it comes to the “best choice”.
Instead, consumers should consider what they are wanting to get out of having an American Express credit card and what perks they are looking for. By considering the annual fees and the interest rates alongside these perks and benefits, you can make an informed decision about which Amex credit card would suit them best.
What are the fees for the American Express Velocity Escape card?
While there is no annual fee with the American Express Velocity Escape Credit Card, there are other fees that cardholders should be aware of. These are:
- $30 late payment fee (if you miss the due date for payment);
- $6 payment dishonour fee (if a scheduled debit does not go through);
- $3 over the counter fee (a possible merchant charge); and
- $7 record for charge (a document submitted as evidence of credit transactions).
Can the Amex Velocity Escape be used internationally?
Yes, the Amex Velocity Escape card can be used internationally, anywhere that American Express is accepted. There is a 3% international transaction fee, which is placed on top of the converted amount.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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