Amercian express cashback

MrChips

Hi, apologies if this has already been covered elsewhere - I've seen various ramblings about recent changes to Amex cashback but nothing that quite seems to answer my queries.

I am the holder of an Amex platinum card and have been for about a year and a half. My typical annual spend is about £9,000 which makes it a borderline case as to whether to stick with it, or go with a straight 1% card like Egg money. At least this was the case until I read that the cashback tiers are being moved.

Now from what I have read in Martin's article, and on the forum, existing cardholders' tiers are being moved in October. With this in mind, I called customer services to clarify, first whether this is correct, and second how transitional arrangements will work (I get my cashback credited in March, so will they calculate my cashback applying the new lower rates to my whole year spending, or only apply the lower rates to post-October spending?).

Anyway, to my surprise, the lady in the call centre asked where I had heard about these changes for existing customers and then told me that although rates were moving for new customers, rates were not moving for existing customers.

Very confusing - have I just been lied to? Or am I a "special case" (I doubt it somehow!)?

What is going on - having just got an Egg money card, I had been intending to reduce the credit limit to £500 on this card, and then cancel it as soon as I had received my cashback next year. Now I don't know what to do!

sloughflint

MrChips wrote:

Hi, apologies if this has already been covered elsewhere - I've seen various ramblings about recent changes to Amex cashback but nothing that quite seems to answer my queries.

I am the holder of an Amex platinum card and have been for about a year and a half. My typical annual spend is about £9,000 which makes it a borderline case as to whether to stick with it, or go with a straight 1% card like Egg money. At least this was the case until I read that the cashback tiers are being moved.

Now from what I have read in Martin's article, and on the forum, existing cardholders' tiers are being moved in October. With this in mind, I called customer services to clarify, first whether this is correct, and second how transitional arrangements will work (I get my cashback credited in March, so will they calculate my cashback applying the new lower rates to my whole year spending, or only apply the lower rates to post-October spending?).

Anyway, to my surprise, the lady in the call centre asked where I had heard about these changes for existing customers and then told me that although rates were moving for new customers, rates were not moving for existing customers.

Very confusing - have I just been lied to? Or am I a "special case" (I doubt it somehow!)?

What is going on - having just got an Egg money card, I had been intending to reduce the credit limit to £500 on this card, and then cancel it as soon as I had received my cashback next year. Now I don't know what to do!

Well I had stopped using my Amex card for this very reason assuming that the new tiers would apply to us all.
I remember seeing another poster saying s/he had been stung before when the rates changed the last time.
Who knows? I might call up and see if I get the same story

exel1966

I'm due my cashback in October so will be interested to see just how much I get. Currently spent £11,200.00 which will rise to about £13K by the cashback due date.
Anyone out there able to tell me what the likely cashback will be on the above spend usung the old rates and new rates ?

MrChips

sloughflint wrote:

I might call up and see if I get the same story

Please let us know if you get the same story!

sloughflint

MrChips wrote:

Please let us know if you get the same story!

I think we've got our answer here: see post number 468
http://forums.moneysavingexpert.com/showthread.html?t=270&page=24

MrChips

Hmm, still slightly confused about what I was told.

Does this mean the call centre has a policy of lying about the impending rate cut, or that I just got a clueless employee? Has anyone else asked them directly about this and been told about the October changes - if not, where has this news come from?

I was specifically told that the new rates were for new customers only.

sloughflint

exel1966 wrote:

I'm due my cashback in October so will be interested to see just how much I get. Currently spent £11,200.00 which will rise to about £13K by the cashback due date.
Anyone out there able to tell me what the likely cashback will be on the above spend usung the old rates and new rates ?

Basing on 13k:
old system:
0.005*3000+0.01*4500+0.02*5500=£170 equiv to 1.3%
new system:
0.005*3500+0.01*6500+0.015*3000=£127.50 equivalent to 0.98%

If you don't spend anymore: old system 1.19% return and new system 0.89%