Nectar Amex Card £25 yearly fee

The1832ReformAct

They put it in a letter that was delivered yesterday
Their business revolves around making money out of people paying interest on debts, not people paying for that pleasure.

[Deleted User]

The1832ReformAct wrote: »

They put it in a letter that was delivered yesterday
Their business revolves around making money out of people paying interest on debts, not people paying for that pleasure.

Actually I think Amex's business model is to make as high a percentage as possible from merchant transaction fees rather than interest on balances carried - that's probably why they are one of the few remaining issuers of charge cards in which the balance must be paid in full each month. They are also very keen for people to set up DD paying the full amount on their CCs.

Most of their cards come with pretty decent benefits (not sure I'd include nectar in that though). My first Amex was the platinum cashback and since having it since August last year I've made at the very least £600 (£250 cashback and the rest from 4Square and other offers like small shops etc). Makes the £25 annual fee seem pretty insignificant..

Roger1

Much of this discussion has already taken place in the earlier thread https://forums.moneysavingexpert.com/discussion/4510369

Time for consolidation?

izools

The1832ReformAct wrote: »

They put it in a letter that was delivered yesterday
Their business revolves around making money out of people paying interest on debts, not people paying for that pleasure.

Not AMEX, no. Their target market is savvy and / or wealthy consumers who pay their cards in full each month or operate their accounts in such a way so as to not incur interest.

They expect their accounts to be operated this way and their offers are designed to suit this kind of customer.

They expect people to pay them £25 a year fee so that in the event someone let's their account go dormant or uses it next to none of the time, AMEX aren't loosing money keeping that customer on their books. It also encourages "big spenders", which of course will earn them more merchant fees than those who don't spend a great deal.

I've just taken out the AMEX Platinum Cashback with 1.5% cashback and £25 annual fee. And 13 Months 0% on purchases.

I plan to pay the minimum payment +£1 for the first 12 months - use the card for my regular spending - and put the money I'd normally use for this spending in to a regular saver or two -

And depending on the limit they give me I should profit by around £75 ~ £250 - taking into account the £25 annual fee.

JakeGreen

izools wrote: »

I've just taken out the AMEX Platinum Cashback with 1.5% cashback and £25 annual fee. And 13 Months 0% on purchases.

It's 1.25% isn't it?

or is the moneysupermarket with the 0% for 13 months different?

I just got the 5% for 3 months one and it's 1.25% after that.

izools

Oh balls it's only 1.25%

And they're still doing the 5% for three months upto £2,000 spending... yep just saw it on their website.

Grr wish I'd read everything properly would have been much better off with that 5%!

JakeGreen

To be honest I would have preferred the 0% on purchases offer! I only found out about the 0% card after I had applied for the 5% one.

In terms of annual fees, it all depends on your personal spending habits and whether you think the card is worth it or not.

The annual fee helps the lender cover their overheads and should encourage you to use the card more earning merchant fees. If people close their accounts then AMEX can lend more to new/existing customers.

bluffer

reclusive46 wrote: »

Its hardly a fee considering the fact you can make it back in one Foursquare offer.

ITS STILL A FEE!!!

And there have been precisely zero offers near me in the last year - ie within 20 miles.

bluffer

Venusflytrap wrote: »

I have had the Nectar Amex CC since 2011 and so far haven't been advised of an annual fee.

Were you notified by letter or as a message in your latest bill?

If the annual fee applies then I shall no doubt be closing my account.

Its by letter. I got mine this morning so you will probably get yours in the next few days. The changes start on 21/5 and the first fee debited on the anniversary of the account opening.

Bye Bye, Nectar Amex. It was nice knowing you.

izools

JakeGreen wrote: »

To be honest I would have preferred the 0% on purchases offer! I only found out about the 0% card after I had applied for the 5% one.

In terms of annual fees, it all depends on your personal spending habits and whether you think the card is worth it or not.

The annual fee helps the lender cover their overheads and should encourage you to use the card more earning merchant fees. If people close their accounts then AMEX can lend more to new/existing customers.

Haha, oops! Swap?