Flexible points: your 101 guide

Did you know that not all points are created equal? Some types of points are valid only with one airline – and by extension, with that airline’s specific circle of partners. But there are other types of points that don’t lock you in. Flexible points, such as the kind you can earn through pay.com.au, give far more freedom.

That’s because flexibility brings choice. When you have flexible points to spend, you’d be surprised to discover just how wide your travel options become. For example, by processing your business’ payments through Pay.com.au, you could earn up to 2 flexible PayRewards Points for every dollar spent.

There’s no limit to the number of PayRewards Points you can earn or transfer. And we have some incredible transfer partners including Qantas, Virgin Australia, Cathay Pacific, Singapore Airlines, Qatar Airways, and more.

If you haven’t used a flexible points program before, here are some of the ways you can extract maximum value for your business, and travel with greater ease using points.

Major flexible points programs in Australia

You might already be familiar with the concept of flexible credit card points. One popular program is American Express Membership Rewards, which allows eligible cardholders to earn points directly with AMEX, before converting them into frequent flyer points or hotel loyalty points with American Express’ range of partners.

Similar programs include Altitude Rewards, ANZ Rewards, Citi Rewards, NAB Rewards, Westpac Altitude Rewards, and to a lesser extent given recent changes, CommBank Awards. Those programs help spenders to generate flexible points on their credit card transactions. After earning those points, the cardholder can choose to convert them into frequent flyer points, or to use them in other ways.

PayRewards, the loyalty program of pay.com.au, is very similar. We allow businesses to earn flexible points on their routine payments. But we’re not a bank. In fact, if you’re already earning points through your bank or credit card, you can double dip. That’s because you can fund your transactions through pay.com.au using American Express, Mastercard and Visa – and if your card earns points, it’ll accrue rewards in the usual way. But at the same time, you can earn PayRewards Points, giving you a separate stash of rewards on top.

You can even earn PayRewards Points when funding a transaction straight from your bank account. That could even include paying off your credit cards. Rather than making a boring BPAY transfer as usual, complete that payment through pay.com.au and add to your stockpile of flexible points for when the next travel opportunity comes knocking.

The advantages of flexible points

Unlike frequent flyer points that are attached to a specific airline, flexible points are yet to have their destiny determined. When you have multiple transfer partners to choose from, your flexible points can go where you need them. Here’s why that’s valuable.

• Access more reward seats. Look beyond your usual frequent flyer program. With flexible points, you’re free to hunt for reward seats through other airline programs as well. Find something suitable, transfer your points, book, and relax. That beats paying full fare.

• Seek out the best available deal. There are often many ways to book the same flight using points. When you have access to multiple frequent flyer programs, you can find and use the program offering the lowest reward rates for your journey. That’s more points left to spend on your next flight.

• Mix and match. One transfer partner might be able to get you there, but not get you home. With flexible points, grab that one-way flight while you can, and make use of a different frequent flyer program for the return leg.

• Airlines aren’t the only option. With flexible programs like PayRewards, you can convert your rewards into points with hotel chains, too. This means you could save big on the ground, as well as in the air.

• Avoid inflexible airline points expiry rules. Some frequent flyer programs adopt a ‘use it or lose it’ approach to points and miles, where you can’t build your balance over many years to book one dream reward flight. But with flexible programs like PayRewards, the fixed-date rules of airlines become less relevant. That’s because you can hold onto your points until you’re ready to fly.

• Escape points devaluations. Every now and again, just about every frequent flyer program hikes the number of points needed to book reward flights. That’s most impactful for people with large balances of points already in that airline’s program. But by keeping points in a flexible program like PayRewards, your options remain on the table.

From time to time, PayRewards also runs various points transfer promotions. Convert your points when these deals are running and you could receive even more frequent flyer points than you normally would. It’s one way that airlines entice you to shift your flexible points into their program, when they know you have many other options as well.

The flexible points traps to avoid

Flexible programs do have a slight layer of complexity. Because rather than only dealing with the airline you know, you have so many frequent flyer programs to choose from. Where do you begin?

Some make the mistake of transferring points on autopilot to the airline they’re most familiar with. But once you’ve done that, you’ve taken most of your options away. You’d have to keep your fingers crossed that the program you’ve chosen has a reward seat when it suits – and at a reasonable price. Otherwise, you’ll be frustrated to learn that you could’ve shifted those points elsewhere, and travelled for less.

We’ll also go back to the very beginning of this piece: not every point is created equal. Flexible programs, including PayRewards, apply conversion rates when transferring points to each partner. For instance, you could earn up to 2 PayRewards Points per $1 spent through pay.com.au. Then, you can convert PayRewards Points into Qantas Points or Velocity Points at a 2:1 rate. Effectively, you’re earning the equivalent of up to 1 Qantas Point or 1 Velocity Point per dollar spent.

Flexible programs can also apply different conversion rates to different partners. But don’t let those variances deter you. Think about how many of those points are needed to book the flight you want, and how many PayRewards Points that’s equal to. You might be surprised with the potential value of using the partners that, on paper, appear to be less generous with conversions.

Here’s an example, based on a one-way business class booking from Sydney to London.

Taxes, fees and charges are also payable in addition to the points required. These vary by airline, route, and travel class. 

Perhaps now, you see the opportunity. You might receive fewer frequent flyer points or miles when converting to some points partners. But in turn, you may need fewer of those points to book your dream flight. Consider the bigger picture, not just the initial transfer rate, and you’ll be set up for success.

Flexible points are the secret weapon of any savvy business owner. So, what are you waiting for? PayRewards Points ready are waiting to take you to new heights.

Written by Chris Chamberlin

Share this guide

About the author

Chris enjoys making the most of frequent flyer points, which have taken him around the world – usually, at the front of the plane. He’s travelled over 1.5 million miles sampling the best in Business Class and First Class. That’s further than three return trips to the moon! Chris is based at Point Hacks' Melbourne office as News Editor, and shares his experiences via @chris_chamberlin on Instagram. When he’s not travelling, he enjoys tennis, keeping fit, and discovering new gins.