The Velocity Rewards credit card market is heating up, with the classic and recently re-branded Virgin Australia Velocity Flyer Card going head to head with the newly-launched American Express Velocity Escape card.

Both are being heavily promoted, but which of these two is the best choice for Virgin Australia’s frequent flyers? 

Peter Marshall from financial comparison website Mozo put together this analysis for Australian Business Traveller readers.

Velocity frequent flyer points earning

The points earned on your spend which is the ‘engine room’ of any rewards card, and here the American Express Velocity Escape card wins this hands down.

It has same one-point-per-dollar earn as most other rewards cards but without the impost of an annual fee.

On Australian’s average annual credit card spend of $16,000 you’ll earn the equivalent of 1.54 Sydney-Melbourne flights (costed as $208 each).

The Virgin Australia Velocity Flyer card delivers the same point-per-dollar earnings but that’s offset by a $129 annual fee, leaving you with a far smaller net reward value of $79.

Bonus free flights

But the Virgin Australia Velocity Flyer has something extra up its sleeve: a bonus deal of one free seat when you buy a ticket on any Virgin Australia flight, up to four times a year.

If you think you can make use of this deal it’ll quickly outweigh the cost of the annual card fee.

Introductory offers

Both cards are trumpeting introductory offers to entice new customers.

The American Express Velocity Escape Card is currently giving away 7,500 points for all applications approved by February 28, 2013, provided you spend $500 in the first the months.

The Virgin Australia Velocity Flyer card counters with your choice of up to 15,000 bonus points or a reduced annual fee of only $50 in the first year.

You’ll get 7,500 points if you apply before January 9, 2013 and make just one retail purchase. A further 7,500 bonus points lands in your lap if you spend $5,000 on the card within the first three months.

Which Virgin Australia Velocity card wins?

This is a close call due to some of the special deals offered beyond the standard earn rate. But if you think you can use the free flights that come with the Virgin Australia Velocity Flyer card, this may tip the card into pole position.

Which of these two cards is likely to get your business? Let us know – share a comment below!