Australia is designated as the launch market for the shared currency credit card that Star Alliance is introducing. The card’s premise was that rewards accrued on it could be transferred to and used on any of the 26 airlines that make up Star Alliance.
Although there is no timetable for doing so at this point, Star Alliance may expand the card to other markets depending on the reception it receives in Australia.
We do not yet know when applications for the card will become available. However, you will likely be able to do so before the year is over.
When you apply for the HSBC Star Alliance Credit Card and make eligible purchases totaling $4,000 or more within the first 90 days of approval, you can quickly reach Star Alliance Gold Status. It includes uncapped Star Alliance points earned on spending within the first year ($0 yearly cost thereafter). It also applies fees, charges, and T&Cs. However, the offer may expire at any time.
Points are offered by numerous Australian rewards credit cards. However, none provide a way to quickly advance to Gold status in the biggest airline alliance in the world. They also don’t provide a flexible central points “currency” that can be exchanged for tickets on seven partner airlines of the Star Alliance.
Key Features
- The card will use the VISA payment network to execute transactions and will be sold by HSBC in Australia.
- It will have a $450 annual cost, but for early-bird applications, the first year is free. We don’t know how long the card’s $0 annual fee offer will endure because applications for the card aren’t yet available.
- Star Alliance Points will be the standard unit of exchange for the card.
- Up to $3,000 each month, card members will receive 1 Star Alliance Point for every $1 of eligible spending, and 0.5 Star Alliance Points for every $1 after that.
- It is understood that card members can choose any one of the 26 Star Alliance holders to be their Status airline. Each month, the card’s Star Alliance Points will be automatically converted and added to the designated airline’s frequent flyer program.
- By spending $4,000 within 90 days of card acceptance, cardholders who choose Singapore Airlines as their status airline can obtain KrisFlyer Elite Gold status for 12 months. They must use the card at least $60,000 every 12 months to keep the status for longer than 12 months.
Pros
- The initial year has no yearly charge.
- Balance transfers are available for 12 months at 0% p.a. with a 2% transfer fee.
- With the seven alliance member airlines, you can exchange your Star Alliance points for frequent flyer miles.
- It includes free purchase protection insurance and travel insurance.
Cons
- After the first year, the annual rate goes back to $450.
- After the first year, to remain a Gold member, you must spend a minimum of $60,000 annually.
Benefits
- Free travel protection: International travel insurance is offered without cost with the HSBC Star Alliance Credit Card. To activate the coverage, travel expenses must have been paid for with the card before departure. Applying eligibility standards.
- Consultancy services: Concierge services are available round-the-clock with the HSBC Star Alliance Credit Card. You can get assistance with everything from travel suggestions and reservations to shopping guidance and gift-giving with this service.
- Priority at airports and access to international lounges: Access to more than 1,000 lounges globally.
- On direct flight bookings made with participating Star Alliance member airlines, there is no interest for six months.
- Insurances: The fraud protection, extended warranty protection, purchase protection, price protection, and transport accident insurance that come with this card are all included.
- Bonus points: Cardholders of the HSBC Star Alliance Credit Card can accumulate 2 Star Alliance Points for every $1 spent on international transactions in addition to 1 Star Alliance Point for every $1 spent on qualified items. Earning Star Alliance Points is unlimited, and they never lose their value. The greatest earn rate, however, is only valid for the first $3,000 of a statement month; after that, it lowers to 0.5 Star Alliance Points for every $1 spent. Air Canada, Air New Zealand, EVA Air, Singapore Airlines, South African Airways, Thai Airways, and United Airlines are among the cooperating airlines that accept Star Alliance Point transfers. Star Alliance Points can then be redeemed for tickets or upgrades through these airlines’ frequent flyer programs.
- Welcome bonus: Gain Star Alliance Gold Status by making at least $4,000 in Eligible Purchases within 90 days of account opening. When flying with Virgin Australia, if you opt to be a gold member of Singapore Airlines or United, you will also receive lounge access and early check-in.
What is it good for?
For regular travelers, especially those who spread their travels over several airlines, this card might be a game-changer. This could be a wonderful way to keep your status and earn points if you frequently fly with one of the airlines served by this card that isn’t well connected to other loyalty programs in Australia.
This card might not be right for you if you primarily fly with one airline, especially one that is not a Star Alliance member. Also bear in mind that while obtaining gold status with this card is simple, maintaining it might be expensive.
Without a doubt, this card is exclusively intended for travelers. If you need them, extras like the 0% balance transfer offer make the package more enticing, but it’s clear that HSBC is targeting regular travelers with its Star Alliance card.
To determine whether this card will work for the way you travel, you’ll need to do some research. The focus is largely on status, therefore you must be able to retain Gold Status each year and accumulate enough points to fully utilize the card and justify the $450 annual premium.
A significant consideration is the $450 yearly charge, even though it is waived for the first year.
Conclusion
Australia will soon accept the Star Alliance payment card. Though applications for the card are not being accepted right now, they will undoubtedly start soon. You are both excited and disappointed by it. On the one hand, you are excited about the possibility of accessing various frequent flyer programs that have not previously been offered in Australia.
A new option called the HSBC Star Alliance Credit Card could make traveling with affiliated airlines easier. The deal increases your ability to earn Star Alliance Points and lets you transfer them to one of seven participating airlines of your choice.
Additionally, it provides a mechanism for you to quickly reach Gold Status, a $0 annual fee
for the first year ($450 annually after that), and 1 point for every $1 spent on eligible purchases for the first $3,000 of each statement period.
Furthermore, the fact that the card’s points are always linked to just one frequent flyer currency and that manual transfers are not possible adds to the frustration. The sanest course of action will be to withhold making a value judgment on the card for the time being, given what we know and a ton of unknowns.