Commonwealth Bank Awards credit card customers will soon be able to claim “instant rewards” at Myer Stores as part of a new collaboration. From November 23, CommBank customers will have the option to pay with points only or opt for a point plus pay option where they can nominate the number of points they want to use (minimum 186) and pay the remaining balance in cash or on their credit card.
It’s an interesting move for Myer, and we’re wondering how long it’s going to take before they or rival retailer David Jones kick off an instant rewards program for their own branded credit cards, the Myer Visa and David Jones American Express card.
While shoppers will love the ability to redeem rewards instantly rather than wait for a giftcard or new toaster to arrive in the mail weeks later, what we’ve discovered is that customers are really trading convenience over rewards value for their spending.
We’ve compared the Myer Visa, and the Commonwealth Bank Awards programs using our Rewards Revealer tool and found that to get a $100 Myer gift card you’d have to spend $17,400 with the CommBank Awards Mastercard compared to $10,000 with the Myer Visa card. If you choose to use the CommBank Awards American Express card (as opposed to the Mastercard), you’d need to spend $11,600 to get the same reward.
There is a big the difference between the two cards’ rewards programs however. Myer Visa customers can only redeem rewards at Myer, whereas in addition to the Myer instant rewards, Commonwealth Bank Awards program has a range of travel, giftcard and merchandise rewards that its customers can choose from.
Rewards Revealer illustrates just how important it is for consumers to think about the types of rewards they want (and are likely to use) and choose a rewards credit card based on this. Instant rewards at Myer using your CommBank Awards card might be a good option to have when you’re out shopping but if it means you have to spend $7400 more to get the same reward, that convenience comes at a pretty hefty price.
If you’re simply after shopping gift cards then choose a credit card like the Myer Visa that will get you the best return for your spend. Likewise if you want flights then go for a card that will get in the air the quickest. Out of the 64 rewards cards available on the market, the Commonwealth Bank Awards Card is ranked number 15 (based on an annual spend of $16,000) for delivering rewards value across all rewards categories (travel, cashback, giftcards) so if you want flexibility and maximum choice for your spend then its one of the better rewards credit cards to have.
But remember, if you’re carrying any sort of ongoing balance on your rewards credit card then you will be paying more in fees and interest than the value of any rewards, so switch to a low rate card. With the money you’ll save you could head to Myer and pick out a whole new summer wardrobe, not just a new belt.