MSE News: Amex set to revamp cashback credit card

wizk1

FarleyFlavors wrote: »

"I've just been through the current terms and conditions for the Platinum Amex card. The only restriction mentioned is "No rebate payment will be made if, in the 12 months preceding your card anniversary date, the amount of rebate earned totals less than £10".

I concur. Clause 17 of the T&Cs give no indication whatsoever of any minimum spend at all, let alone £2,400. What annoys me most of all is how AMEX have the cheek to still promote their card without letting any new "victims" know of the changes that are bound to affect them. Surely this isn't allowed?

Oh. And yay for me. 100 post anniversary :j

Grade_A_Reject

In the letter I received today titled "Important changes to your American Express Platinum Card that will impact you" the two main points I noted were:-

Introduction of a Dormancy Fee

We are introducing a dormancy fee of £20 per year if you have not made any transactions on your card in the preceeding 12 months.

Change to the minimum threshold amount for the payment of cashback rebates

We will be increasing the minimum threshold amount for the payment of cahback rebates from £12 to £25.

Probably the biggest impact is the raising of the cashback threshold. To earn £25 would require a spend of £4000 p.a (£3000 @ .5% + £1000 @ 1%) or an average of £333.33 per month.

wizk1

Grade_A_Reject wrote: »

We will be increasing the minimum threshold amount for the payment of cahback rebates from £12 to £25.

I haven't received the letter yet, but from what I can see, AMEX haven't introduced a minimum spend clause in order to receive the cashback, but instead, increased the cashback payout threshold. So for those who are still in their promotional period, all they need to do is spend £500 in order to reach that threshold (£500 x 0.05 = £25).

Grade_A_Reject

wizk1 wrote: »

I haven't received the letter yet, but from what I can see, AMEX haven't introduced a minimum spend clause in order to receive the cashback, but instead, increased the cashback payout threshold. So for those who are still in their promotional period, all they need to do is spend £500 in order to reach that threshold (£500 x 0.05 = £25).

That's right, I left out the promotional rates asthey only apply for new customers. My maths was wrong anyway as it's the first £3500 which is at 0.5%.

oakhouse13

wizk1 wrote: »

I concur. Clause 17 of the T&Cs give no indication whatsoever of any minimum spend at all, let alone £2,400. What annoys me most of all is how AMEX have the cheek to still promote their card without letting any new "victims" know of the changes that are bound to affect them. Surely this isn't allowed?

Oh. And yay for me. 100 post anniversary :j

Happy 100. I still do not really understand what's changed although I have a bad feeling about it and wish I had never taken out this stupid card that I can't use anywhere. I thought the same as you and I wondered if MSE would have to add a warning about the changes to its article as it is signing people up on the old terms. It hasn't changed the article so that makes me think it does not affect us.

wizk1

oakhouse13 wrote: »

I thought the same as you and I wondered if MSE would have to add a warning about the changes to its article as it is signing people up on the old terms. It hasn't changed the article so that makes me think it does not affect us.

You're right oakhouse, it doesn't affect us just yet. If you signed up for the card this year and hit your £25 threshold, you needn't worry. But say if you had it for a couple of years now, and your promotional 5% rate has since long disappeared, then you'd have to cough up the £4250 in order to accrue the £25 minimum cashback.

A lot of aggro and panic would have been saved if Dan had focused more on the increased cashback threshold, rather than the amount we'd need to spend in order to hit it. What he didn't point out is the fact that a vast number of us have applied for the card this year, and have enjoyed our promotional rate during this "AMEX financial year", thus being able to spend less to reach the threshold.

Next year however, we'd have to start spending more in order to make this card worth our while. But next year, I will probably find that this card is no longer suited to me and will more than likely close the account.

I can understand that AMEX would want to rid themselves of unprofitable customers, but at the same time, I can't help but think they've shot themselves in the foot by attracting customers they know they will soon want to bump off, in the first place.

oakhouse13

Thanks, I understand now. I have a university degree but this card is too complicated for me.

FarleyFlavors

wizk1 wrote: »

A lot of aggro and panic would have been saved if Dan had focused more on the increased cashback threshold, rather than the amount we'd need to spend in order to hit it. What he didn't point out is the fact that a vast number of us have applied for the card this year, and have enjoyed our promotional rate during this "AMEX financial year", thus being able to spend less to reach the threshold.

Agreed, it was a strange way to word it. It certainly had me panicking !

kar999

I've maxed my Am Ex card in it's first year and now into the 1.5% tier but going forward I'll have to do my sums. It looks like I'll be using my old Egg Money card a lot more. I dont have to pay the annual fee but the limit on cash back is £200. As some places dont take Am Ex it's not a simply case of maxing the Egg one then switching spend to Am Ex.:undecided





"Winners and losers from the changes

• Anyone who spends less than £7,500 is not affected.
• If you spend between £7,500 and £12,500 a year you'll earn more.
• Anyone who spends over £12,500 a year will be worse off.

Low-to-medium Amex Platinum spenders who have had the card for more than a year, may also be better off with Egg Money."

JohalaReewi

Got my letter yesterday. Unfortunately for Amex, my spend has gone down and it has taken me 6 months to reach the £3500 level. Guess I will close the card next anniversary.