Flight Centre Mastercard Review

With no foreign exchange transaction fees# and Flight Centre reward dollars, the award-winning Flight Centre Mastercard is a welcome improvement from bank credit cards.

Updated 7 October 2024

Summary

If you regularly spend in overseas currencies and like to travel, the Flight Centre Mastercard is a market-leading credit card. And, if you routinely pay off your credit card in full every month, it is arguably one of the most rewarding credit cards available in New Zealand.
With no international transaction fees (excludes cash advances), travel perks and rewards, there's a lot to like. We also like the 1.00 Flight Centre Rewards for every $150 spent in NZ, 1.00 Reward for every $100 spent internationally (and 2 Rewards per $150 spent at Flight Centre NZ).

To help you decide if the Flight Centre Mastercard is right for you, we've put together a guide to explain the pros, cons, and what you need to know. Our guide covers:

Know this first: What are 'international transaction fees'?

When you purchase something in a foreign currency, (either online or when outside of New Zealand), credit and debit cardholders are charged between 1.80-4.5% on top of the value of the purchase. What percentage you pay depends on what card you have.
Each bank usually charges two fees; "Currency Conversion Assessment" fee and a Mastercard or Visa "Foreign Currency margin". Both of these fees vary per bank, meaning the total you'll pay for a purchase depends on your bank's fees. For this guide, we call them 'foreign currency fees'.
FlexiGroup offers the Flight Centre Mastercard, which has a 0% foreign currency conversion fee and for this reason alone, is arguably one of the most attractive options currently available.
A typical example, per the image below, shows international transaction fees on a Kiwibank credit card statement.
Here we see the exchange rate (0.726), the conversion fee (NZ$12.78) and the transaction fee ($10.86).
With a Flight Centre Mastercard, you would only pay the NZ$1,277.53 and save around NZ$24 in fees.

Flight Centre Mastercard international transaction fees

Flight Centre Mastercard Card Fees, Benefits and Limits

Beyond the free foreign exchange fees, there are some important benefits and fees to know about, which we explain below

Fees:

A $50 annual Account Fee (charged as $25 every 6 months).
Establishment Fee: A $55 fee charged when you make your first purchase using Long Term Finance.
Advance Fee: A $35 fee charged every time you make a Long Term Finance purchase, except where it is your first Long Term Finance purchase (where an Establishment Fee of $55 will be charged).
Cash Advance Fee (Domestic): A fee charged when you withdraw cash. $2 from an ATM, or $3 from a domestic teller plus an access fee (if any) charged by the financial institution from where you made the withdrawal.
Cash Advance Fee (International): A fee charged when you withdraw cash. $3 from an ATM or $6.50 when you withdraw with the help of an international bank teller plus an access fee (if any) charged by the financial institution from where you made the withdrawal.
More details on fees and charges: Visit the Flight Centre Mastercard website.

Benefits and Specs:

No international transaction fees and currency conversion - you won't pay any FX fees (saving you around 2% to 2.5% compared to most other credit cards).
Up to 44 days interest free terms by paying your closing balance in full by the due date. The standard interest rate of 24.99% p.a. will apply to any part of the closing balance on your statement that is not paid by the payment due date. This interest will be calculated from the date the relevant purchases were debited to your account.
^Long term finance deals including interest free terms and extended payment holiday deals available with Flight Centre and many other retailers.
Straightforward reward system for earning and redeeming - cardholders earn 1.00 Flight Centre Reward for every NZ$150 spent at any retailer that accepts Mastercard in NZ, 1.00 Reward for every $100 spent internationally and 2.00 Rewards for every NZ$150 spent at Flight Centre NZ. And, unlike Air New Zealand credit cards, you can spend rewards on ANY airline, hotel or travel package at Flight Centre NZ when you book using the Flight Centre Mastercard.
Redeeming is easy - 1 Reward = NZ$1.00 credit to spend at Flight Centre. Flight Centre Reward credits are automatically deducted from any Flight Centre purchase made with the card. Flight Centre reward credit is valid for three years.
24.99% p.a. Standard Interest Rate - most other reward credit cards charge 20% to 25% p.a., so this is in the range.
Payment options - direct debit and online banking/transfers are the only options available. The minimum payment is either $10 or 3% of the closing balance per statement.
Cardholders can add additional card holders for no extra cost - this allows them to earn rewards on more than one person’s spend.
Flight Centre Mastercard integrates with Apple Pay™, Google Pay™ & Garmin Pay™.
More details: Visit the Flight Centre Mastercard website.

^Lending criteria, $50 annual Account Fee, fees, Ts&Cs apply. Minimum spends and exclusions may apply. Standard Interest Rate of 24.99% p.a. applies after any interest free period. $55 Establishment Fee applies to your first LTF transaction and $35 Advance Fee applies to subsequent LTF transactions. See Fees and charges - Flight Centre Mastercard for full details.

Why we like Flight Centre Mastercard:

The offering, in no uncertain terms, is market-leading and is a top contender for anyone looking to make a lot of purchases in foreign currency (online or overseas). We believe:

For years, New Zealand banks have whacked on 'foreign currency transaction' charges to their customers, taking as much as 3.5% of a purchase value if a transaction is anything other than in NZD.
1.While this relatively new credit card, launched in late 2017, its purpose is to eliminate the unnecessary bank fees associated with overseas spending. For example, if you spend 100 Australian dollars, you'll pay an amount in New Zealand dollars using Mastercard's foreign exchange rate. There won't be any of the extra international transaction fees the banks usually charge; excluding on cash advances.
Best of all, Mastercard foreign exchange rates average around 1% better than Visa's (per our comprehensive study), so you're really getting the best exchange rate possible.
1.Other perks exist, such 1.00 Flight Centre Reward for every $150 spent in NZ; 1.00 Reward for every $100 spent internationally and 2.00 Rewards for every $150 spent at Flight Centre NZ. You can earn rewards on purchases including long term finance purchases at Flight Centre and many other retailers.
However, like the Q Mastercard, cardholders must be careful to avoid racking up long-term debt racking. With an annual interest rate of 24.99%, it is much higher than the number of low-interest credit card deals available.
Only one other card, the Wise, formerly TransferWise debit card, avoids foreign exchange fees, but this is not a credit card and doesn't offer the reward perks and protection that a credit card does.

The Flight Centre Mastercard is our Favourite Travel Money Card in our 2024 Editor's Choice Awards

Three Must-Know Flight Centre Mastercard Facts

Understand the Account Fee, as well as fees for any long-term finance^ purchase

Flight Centre Mastercard charges two standard account and administration fees:

Account Fee - $50 per year. Flight Centre Mastercard charges customers $25 to your Account on opening and every six months thereafter.
Advance Fee (or Establishment Fee) - $35 or $55 per long term finance transaction: A $55 Establishment Fee applies to your first Long Terms Finance purchase and a $35 Advance Fee applies to any subsequent Long Term Finance purchases.

Understand the true cost of interest-free deals

Holders of a Flight Centre Mastercard can take advantage of long-term finance deals for qualifying purchases at 30+ retailers, including Flight Centre, JB Hi-Fi, Michael Hill and Specsavers, among others.

Be aware that interest-free can bite later

Very often, you may see '18 months no payments and interest-free' or similar deals promoted, meaning you pay nothing back and will not be charged interest on the purchase until this promotional period passes.
While such deals may seem attractive, they can become expensive if repayments are not budgeted for later on.
Unless you can repay the entire balance of your purchase before the interest-free period ends, the true cost of 'interest-free' is not $0.
You will be charged interest (24.99% p.a.) until the balance is paid off once the promotional period passes, and this may cause problems with existing debts.

Eliminating Foreign Exchange Fees means you're not paying anyone else when you make a purchase

MoneyHub is a long-time campaigner against unnecessary bank fees. In our Best Foreign Currency Debit & Credit Cards guide, we found that foreign exchange fees add up.

As an example, if you make an AU$200 purchase, you will incur foreign currency fees, ranging from NZ$3.80 (ANZ) or as high as $5.30 (Westpac).
With Flight Centre Mastercard, you pay $0 in such fees.

More details: Visit the Flight Centre Mastercard website .

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