Reviewing the American Express Velocity business card

The American Express Velocity Business card is a relative newcomer to the market and is a key player in their Velocity Rewards linked triumvirate.

Here are the pros and cons of this card.

Balance Transfers

Like so many credit cards for businesses, this one has no balance transfer offer. The only business credit card on CreditCardCompare.com.au that does have a balance transfer deal at the time of writing is the previously reviewed Citibank Business credit card.

Purchases

The American Express Velocity Business card is technically a ‘charge card’, which is a different type of financial instrument to the typical credit card and therefore has no purchase interest rate. While you have to pay the card off in full within the 51 day interest free period, which is good financial practice anyway, you won’t be able to have a rolling balance to give you flexibility in your cash flow.

Rewards

American Express are heavily pushing this card’s rewards program. It’s linked with Velocity Rewards, which is the rewards program of Virgin Australia. (If you prefer flying with Qantas, then this one is not for you!) It has an attractive earn rate of 2 points per dollar spent, which compares favourably with other Velocity-linked cards such as the Virgin Flyer. What this means is that you can get your rewards, such as flights and upgrades, faster than with other cards. And the fact that this is linked to Velocity Rewards as opposed to Qantas Frequent Flyer means there will be less competition for seats. Furthermore, you can choose to fly at any time in any seat, instead of having to fight for available seats with Qantas. You’ll even get 20,000 bonus points to start with just for applying.

Insurance

Complimentary insurance is a common feature among business credit cards, and the American Express Velocity Business card doesn’t disappoint. Cardholders get complimentary domestic and overseas travel insurance – most cards only offer cover on overseas trips. Travel inconvenience cover and transport accident cover will compensate you for delays, missed connections, delayed baggage and accidents while travelling on public transport resulting in the loss of a limb or life. To be clear, the additional insurance is not the sole reason to get this card, but it is a sweetener.

GST and BAS Preparation

As any business owner will testify, paperwork gets in the way of actually making money and growing a business. The Velocity Business card helps mitigate this problem by itemising GST expenses and making it easy to prepare your BAS.

Overall

If you want a business card that rewards you with Velocity Rewards points, then there really isn’t much choice apart from the American Express Velocity Business card. But that’s not its only redeeming factor. However, if you are looking to move your existing debt to a card with a lower rate, then this is definitely not for you. And if you want a card where you can park your purchases for a few months to give you some breathing space, then you’d probably be best to look elsewhere too.

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