American Express Explorer Credit Card

The American Express Explorer Credit Card is a consumer card issued directly by American Express in Australia that earns points into the American Express Membership Rewards programme. It sits in the middle of the Amex range: a travel benefit set built around an annual travel credit, lounge access and insurance cover, without the cost or the concierge-level extras of The American Express Platinum Card.

Membership Rewards is the point of the card

Points earned on the Explorer Credit Card go into Membership Rewards rather than straight into an airline programme. That matters, because Membership Rewards is a transferable currency: you decide later which airline or hotel programme the points end up in, rather than being locked into a single carrier at the moment you apply.

Points can be redeemed for gift cards or travel bookings, but the redemptions that usually return the most value are transfers into partner frequent flyer and hotel programmes. Transfers are made at fixed ratios, and those ratios differ sharply between partners.

The programmes Australian travellers reach for most often are Velocity, the route to Virgin Australia business class; KrisFlyer, for premium cabins on Singapore Airlines; and Asia Miles, useful for long-haul premium redemptions across the oneworld alliance, including Cathay Pacific and Qantas. Because the ratios are not equal, the effective value of a point depends entirely on where you send it — the same balance buys noticeably fewer Skywards miles than Velocity points.

Points earned from spending are not capped, so there is no ceiling at which the earn stops for the year.

How the earn is structured

The Explorer Credit Card has a flat structure rather than bonus categories. Everyday spending earns at the headline rate; purchases made with government bodies in Australia earn at a reduced rate. The Australian Taxation Office and Australia Post are both treated as government bodies, so tax payments do earn, but at the lower rate.

One useful quirk: utilities and telecommunications bills earn at the full rate on this card, which is not true of every card American Express issues. If a large share of your household spending is bills paid by card, that is worth checking against whatever card you hold now.

There is no supermarket or fuel bonus category of the kind found on the American Express Platinum Edge Card. A flat structure is simpler to reason about and easier to forecast, but it will not beat a category card for someone whose spending is concentrated in those categories.

The annual travel credit

The card's most substantial ongoing benefit is an annual travel credit that appears in your account on the American Express Travel website. It can be put towards flights, hotels and car hire booked through American Express Travel Online, with low-cost carriers excluded, or towards a stay at a property in The Hotel Collection.

Several mechanics are worth understanding before you rely on it:

• It must be used on a single travel booking, not split across several.
• The booking is charged in full to the card first, and the credit is then applied to your account. American Express indicates this normally happens within three business days but can take up to 30 days.
• It is generally non-refundable if you cancel, so it is best applied to travel you are confident will go ahead.
• It renews each year after the annual fee is charged, though the credit anniversary does not always line up exactly with the statement period in which the fee appears.

Compared with the "one free flight" or "one free night" benefits attached to some other cards, the credit is flexible: it can offset a fare in any cabin, including business or first, rather than being tied to a particular product. The trade-off is booking through American Express Travel rather than direct.

Lounge access, hotel status and hotel benefits

Card Members receive two complimentary entries each year to The Centurion Lounge, at either Sydney or Melbourne airports. That will not replace a lounge membership for a frequent traveller, but for someone flying internationally in economy or premium economy a couple of times a year it covers the departures that matter.

The card also comes with complimentary Hilton Honors Silver status, though enrolment is not always automatic — existing Card Members may need to register through American Express.

Booking a stay of two or more consecutive nights at a property in The Hotel Collection with the card unlocks a hotel credit of up to US$100 for qualifying dining, spa and resort charges, plus a complimentary room upgrade at check-in where one is available. That credit is per qualifying stay rather than annual.

Insurance and purchase cover

A suite of complimentary insurances is attached to the card.

The travel insurance includes a car rental loss damage waiver similar in structure to the one on the Platinum Card, though with a lower total vehicle value limit. Smartphone screen cover applies whether the phone was bought outright or is on a contract.

Conditions apply throughout. Travel cover generally requires that you paid for the travel with the card, with the travel credit, or with Membership Rewards points. There is a maximum age limit at the time travel is purchased, and pre-existing medical conditions are excluded. The product disclosure statement is the authority on what is covered.

Plan It, wallets and business spending

American Express Plan It lets you split eligible balances into equal instalments over a three, six or twelve month period for a fixed monthly fee, with a limit on how many plans can run at once and a minimum balance per plan.

The card works with Apple Pay, Google Wallet and Samsung Pay, which also means an NFC-enabled phone can keep the account usable if the physical card is lost and a replacement is on the way.

American Express permits business transactions on personal cards, which not all issuers do, so a sole trader can use the Explorer Credit Card for business spending. There is also a business version of the card.

Eligibility and who the card suits

The baseline requirements are that you are at least 18, an Australian citizen, permanent resident or holder of a long-term visa, and have a clean credit history with no payment defaults. Income evidence is generally requested later. Bonus point offers on Amex cards separately require that you have not held any American Express card issued in Australia in the preceding 18 months.

This is a card for people who want Membership Rewards access at a mid-range cost and who value simplicity: no categories to track, a substantial travel credit if your travel is predictable enough to commit to a booking, and a transfer list broad enough that you are not betting on one airline. It suits you less well if your spending is concentrated in supermarkets and fuel, if you rarely book far enough ahead to use a non-refundable credit, or if lounge visits and mid-tier hotel status are benefits you would never touch.

Frequently asked questions

Which loyalty programme does the Explorer Credit Card earn into? American Express Membership Rewards. Points sit there until you redeem them or transfer them to a partner programme.

Can I transfer Membership Rewards points to Qantas? Not directly from this card's Membership Rewards account. Qantas flights are usually reached indirectly, for example by transferring to Asia Miles and booking oneworld awards.

Is there a cap on the points I can earn? No. Points earned from spending on the card are uncapped.

Do tax payments to the ATO earn points? Yes, but at the reduced government-body rate. Australia Post is treated the same way.

How do I use the annual travel credit? It must be applied to a single booking made through American Express Travel Online. The booking is charged to the card in full and the credit is applied to your account afterwards.

Is the travel credit refundable if I cancel? Generally no, so it is best used on travel you are confident will proceed.

How many lounge visits does the card include? Two complimentary entries each year to The Centurion Lounge at Sydney or Melbourne airports.

Does the card include travel insurance? It includes a complimentary international travel insurance suite covering several risks. Limits, exclusions and activation conditions apply, and the product disclosure statement sets out the detail.

This information is general in nature. It does not take your personal circumstances into account.