CommBank’s New Smart Awards Credit Card Has No Forex Fees

BRISBANE, AUSTRALIA - MAY 19, 2020: Banner of Commonwealth Bank of Australia (CBA) flagship headquarters office in Brisbane Central Business District on Queen Street. There are people standing on the street.
CommBank has made significant changes to its credit cards. Photo: Adobe Stock.

CommBank has reshuffled its credit card line-up, removing two cards and replacing them with a new Smart Awards credit card. Australia’s largest bank is also making a range of changes to its remaining Awards credit cards, including the CommBank Awards and Ultimate Awards cards.

Here’s a summary of the recent changes to CommBank credit cards…

New CommBank Smart Awards credit card introduced

A replacement for the Platinum Awards card, the CommBank Smart Awards credit card is a mid-tier rewards card that could be a good option for people who do a lot of overseas travel or online shopping. That’s because there are no international transaction fees for purchases made on the card in foreign currencies.

The CommBank Smart Awards card has a monthly fee of $19, which is waived if you spend at least $2,000 on the card during that month. It also comes with complimentary international travel insurance.

With this card, you can earn 1.5 CommBank Awards points per dollar spent. CommBank Awards points can be transferred to frequent flyer programs including Virgin Australia Velocity, Qatar Airways Privilege Club and Air Canada Aeroplan at variable rates. Alternatively, if you pay $60 per year to opt-in to earning Qantas points, you can earn 0.6 Qantas points per $1 spent.

Points are only earned at the full rate on the first $5,000 spent per statement period. Any additional spend each month will earn points at a third of the full rate. But as a nice feature, CommBank will give you 25% bonus points on your largest eligible purchase made each month (up to 1,000 bonus Awards points or 400 Qantas points).

CommBank also advertises that cardholders can “enjoy access to over 1,300 airport lounges worldwide with Mastercard Travel Pass provided by DragonPass with your Smart Awards credit card”. However, the fine print says that you’ll need to pay for each of those lounge visits. There are no included airport lounge passes, so that’s not really much of a benefit.

Until 30 September 2023, CommBank is also offering 80,000 bonus CommBank Awards or 50,000 bonus Qantas points to new cardholders.

Platinum Awards & Diamond Awards cards no longer available

At the same time as CommBank has introduced the Smart Awards credit card, it has withdrawn its Platinum Awards and Diamond Awards cards from sale. These are no longer available to new cardholders.

On its website, CommBank explains: “We regularly review our credit cards to ensure our product range meets customer needs, preferences and market conditions. As a result, we’ve decided to discontinue this product.”

Existing cardholders can continue to use their Platinum Awards or Diamond Awards credit cards as normal – the cards just aren’t available to new customers. Existing cardholders can also choose to switch to a different CommBank credit card if they prefer.

Changes to CommBank Ultimate Awards card

CommBank’s top-tier credit card, Ultimate Awards, will remain part of the bank’s line-up. But there are also some changes coming to that card.

From 25 August, you’ll need to spend at least $4,000 per month to avoid paying the $35 monthly fee, up from $2,500 of monthly spend. The Qantas Points opt-in fee will also increase from $30 to $60 per year.

But in some good news, CommBank Ultimate Awards cardholders now get two complimentary DragonPass airport lounge passes each year. This card continues to offer no international transaction fees and bonus points on international purchases.

Changes to CommBank Awards card

From 25 August 2023, Commonwealth Bank is also making changes to its lower-end Awards card. It will decrease the limit on the amount of points that can be earned with the card, and the $59 annual fee will change to a $8 monthly fee – which works out to be $96 per year.

From the same date, it will also no longer be possible to opt-in to earning Qantas points with this card. The only option will be to earn CommBank Awards points, which can’t be converted into Qantas points.

The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to over 90 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil & Kazakhstan. His interests include aviation, economics & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.
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Another new card. Maybe I should eheck to see if I should switch from ultimate card to this one - lower annual fee and lower monthly spending for fee free?

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Hmmmm .. that sounds like an improvement. I'm retired, but still have a CBA Personal Banker - might see if they can help me apply 🙂 .

Interestingly, CBA is a Qatar Airways transfer partner, currently with a 30% bonus.

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It seems that this new Smart Awards card (LHS), one cannot transfer points to airlines (other than opt in for QF) - the ultimate card (RHS) points can be transferred to 10 different airlines (but the conversion is very poor!)

View image at the forums

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Another new card. Maybe I should eheck to see if I should switch from ultimate card to this one - lower annual fee and lower monthly spending for fee free?

seems like switch makes you ineligible

^Offer available on new Smart Awards credit cards applied for between 3 Jun 2023 and 30 Sep 2023. Offer not available on all other card types, existing cards, and switches from other card types and is not available to customers who currently hold, or have held, any activated Awards card types in the 12 months prior as a primary cardholder. You will be ineligible for the bonus Qantas Points or CommBank Awards points if your credit card account is closed, transferred, or in default at any time prior to the points being credited to your account.

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Their Smart Awards link goes to their Award Site

... which still has the 10 airline partners (but not the transfer rate)

View image at the forums

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... which still has the 10 airline partners (but not the transfer rate)

This chart might help, was last updated in Feb.

Note that Commbank has different transfer rates for Velocity depending on the card you have. I'm guessing the Smart Awards card will be the higher 0.5 Velocity points per Commbank point transfer rate but we'll have to wait till someone gets the card and checks.

For Commbank this isn't a terrible card, given you'd be getting 0.75 Velocity points per dollar spent, there's no international fees, it has good travel insurance and if you spend enough there could be no annual fee. It also has (paid) lounge access through DragonPass, a company I hadn't heard of before but seems to the Chinese competitor to Priority Pass.

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I just don't see this as a deal. In fact all Australian bank cards are stingy. Many don't even award a simple 1-1 in dollar spent and points and all seem to have capping levels and can cost a lot or have spend minimums or even maximums before reverting to even worse rates.

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Commbank always seem to have the lowest QFF earn rate, one reason ive never bothered to include in churn rotation.

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There certainly doesn't seem enough to get me interested. I currently have an Ultimate Rewards card,which was worthwhile for the sign up bonus and savings on international charges. After adding up savings on Kobo, NY Times, and other online purchases it covers the monthly fee. But once we get back from our next international trip in mid August, I'll drop it and look for the next card to churn.

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View image at the forums

This came in the post listing changes to the following cards:
Smart awards
Awards
Ultimate awards
Platinum awards
Diamond awards

Doesn't mention anything about transfer partners

Page 2 below

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