Verdict up front: Yes — if you spend over $2,200/month and will use the $400 annual travel credit. The card pays for itself through the travel credit alone before you count a single reward point. If you rarely travel or won’t reliably use the credit, the $395 annual fee is hard to justify.
Last updated: April 2026 | [Affiliate disclosure: We earn a commission if you apply via our links.]
Reddit ranks #1 for this search query. That tells you something: people don’t trust the corporate comparison sites to give an honest answer about whether this card is worth $395 a year.
So here’s an honest answer.
What You Get
Annual fee: $395
Interest rate: 23.99% p.a. on purchases
Interest-free days: Up to 55 days (if you pay in full each month)
Points earn: 2 Amex Membership Rewards points per $1 on all purchases (excluding government)
Points earn (government spend): 0.5 points per $1
Key benefits:
- $400 annual travel credit (usable on flights, hotels, or car hire booked through Amex Travel)
- Two complimentary airport lounge visits per year (Amex Lounge, eligible lounges)
- Smartphone front screen cover (up to $500 protection)
- Return/refund protection
- Travel insurance (domestic and international — read the PDS)
- Up to 4 additional cardholders at no extra cost
Sign-up bonus: Check current offer — typically 100,000–150,000 bonus Membership Rewards points with minimum spend in the first 3 months.
The $400 Travel Credit — The Card’s Killer Feature
This is the most important thing to understand about the Explorer card.
The $400 annual travel credit essentially makes the card free if you use it. The $395 annual fee minus the $400 credit = net $5 in your favour, before you’ve earned a single reward point.
The credit works as follows: book any eligible flight, hotel, or car hire through the Amex Travel portal or the Amex app, and you’ll receive up to $400 back as a statement credit each calendar year.
How most people use it: Book a domestic flight. Sydney–Melbourne return is typically $150–$250. Book it through Amex Travel, pay with the Explorer card, get the credit. Done — the card’s annual fee is effectively $0.
The catch: You have to book through Amex Travel to trigger the credit. Some people find Amex Travel prices slightly higher than booking direct. Even so, the net result is almost always positive.
The Points Program
2 Amex Membership Rewards points per $1 is among the highest standard earn rates available on an Australian credit card under $400/year.
What can you do with the points?
| Redemption | Approx. value per point |
|---|---|
| Transfer to Qantas | ~0.7–1.5c depending on how you fly |
| Transfer to Velocity | ~1.0–1.5c depending on how you fly |
| Transfer to Singapore KrisFlyer | ~1.0–2.0c on premium cabins |
| Amex Travel (flights/hotels) | ~0.75c |
| Gift cards (e.g. Woolworths, JB Hi-Fi) | ~0.5c |
| Cashback to statement | ~0.5c |
The verdict on points value: The Explorer card earns best when you transfer to Qantas or Velocity for flight redemptions. If your plan is to redeem for gift cards or statement credits, the 2 points per $1 earn rate is less impressive — you’d do better with a cashback card.
Break-Even Analysis
At what monthly spend does the Explorer card pay for itself?
Assuming you use the $400 travel credit (making the effective annual fee $0):
Technically you’re ahead from day one if you use the travel credit. Any points earned are pure upside.
If you don’t use the travel credit (effective annual fee = $395):
At 2 points per $1, valued at 1c each (Velocity transfers):
| Monthly Spend | Annual Points | Points Value | Net After $395 Fee |
|---|---|---|---|
| $1,000/month | 24,000 pts | $240 | -$155 |
| $1,650/month | 39,600 pts | $396 | +$1 |
| $2,000/month | 48,000 pts | $480 | +$85 |
| $3,000/month | 72,000 pts | $720 | +$325 |
Bottom line without the travel credit: You need to spend at least $1,650/month to break even on points value alone. Most households spending $2,000+/month come out clearly ahead.
The 2026 Change to Watch: Currency Conversion Fee Increase
From 4 May 2026, Amex is increasing the currency conversion fee from 3% to 3.5%. If you frequently make purchases in foreign currencies (online shopping from overseas sites, overseas travel), this adds up.
This doesn’t affect the card’s value for domestic spending, but it’s worth knowing if you shop internationally.
Who Should Get the Amex Explorer
Get it if:
- You will definitely use the $400 annual travel credit (almost anyone who flies domestically once a year qualifies)
- You spend $2,000+/month on eligible purchases
- You want flexible points that transfer to multiple frequent flyer programs
- You value travel insurance and purchase protection benefits
Don’t get it if:
- You carry a credit card balance month-to-month (23.99% interest erases all points value)
- You rarely or never travel and won’t use the travel credit
- You spend primarily on government services (earn rate drops to 0.5 points per $1)
- Amex acceptance is limited where you shop (rural areas or small retailers)
How It Compares to the Main Alternatives
| Card | Annual Fee | Earn Rate | Key Difference |
|---|---|---|---|
| Amex Explorer | $395 | 2 MR pts/$1 | $400 travel credit, flexible points |
| Amex Qantas Ultimate | $450 | 1.25 Qantas pts/$1 | Earns Qantas directly, higher fee |
| ANZ Rewards Black | $375 | 1.5 ANZ pts/$1 | Everyday Rewards partnership |
| NAB Qantas Signature | $295 | 1 Qantas pt/$1 | Lower fee, lower earn rate |
| Amex Platinum | $1,450 | 2.25 MR pts/$1 | Full premium card with lounge access |
The Explorer sits in the sweet spot: premium earn rate, meaningful benefits, without the $1,000+ annual fee of full premium cards.
The One Question to Settle It
“Will I book at least one flight or hotel stay through Amex Travel this year?”
If yes: get the card. The $400 credit makes the effective fee $0 and every point earned is free value on top.
If no: the card needs to stand on points value alone. At 2 points per $1 valued at 1c each, you’d need $1,650+/month spend to break even. Possible but less certain.
Frequently Asked Questions
Is the Amex Explorer card hard to get approved for?
Amex requires a minimum income (typically $40,000+) and a clean credit history. The Explorer is mid-tier in Amex’s range — easier to approve than the Platinum but more selective than a basic card.
Can I use the $400 travel credit for Qantas flights?
Yes, as long as you book through the Amex Travel portal or via the Amex app. You cannot book direct with Qantas and claim the credit.
Does the Amex Explorer have lounge access?
Two complimentary passes per year to eligible airport lounges. This is not unlimited lounge access (that’s the Amex Platinum). Two visits per year is roughly one trip return.
What happened to the Amex Explorer’s earn rate?
There was a rate reduction for some transfer partners in December 2025. Transfers to airline programs now require more points for some redemption categories. The 2 points per $1 earn rate is unchanged, but the value per point has modestly decreased for certain flight redemptions.
Is the Amex Explorer better than the Amex Platinum?
For most people, yes. The Platinum costs $1,450/year and offers significantly more perks (unlimited lounge access, higher earn rate, major travel credits). But those perks only make financial sense if you travel frequently and use them. The Explorer delivers strong value for $395.