What is the point of American Express cards?

SpacemanSpiff

American Express cards. They're not accepted in that many places and yet they still exist, still have heavy promotion, and people are clearly still getting them.

Why?

OK. So they have rewards but then so do a lot of cards.

Why do people go for American Express rather than a bank and Mastercard/VISA? A lot of American Express cards also seem to want to charge a fee!!

Am I missing something? Are there any advantages to Amex that you don't get with other cards?

reclusive46

The majority of places accept American Express and the rewards are generally much better than on a similar MasterCard or Visa. Most of the American Express cards that charge a fee are normally worth it to those who spend a high enough amount (Although a few like the Green card are more of a gimmick or for those who want good service).

guesswho2000

Depends on the Amex card as to what the advantages are.

Amex cards charge retailers higher interchange, therefore the rewards are generally better - my example is my AAdvantage Amex/Visa and Virgin Atlantic Amex/Visa cards. (These are both MBNA issued).

The AAdvantage cards pay me 1.5 AA miles per £1 when I use the Amex, 0.75 AA miles per £1 when using the Visa;

The Virgin Atlantic cards give me 2 VS miles per £1 with Amex, 1 VS mile per £1 using the visa.

Double rewards just for using a card with a different logo on the front, essentially.

[Deleted User]

SpacemanSpiff wrote: »

They're not accepted in that many places.

Nonsense. I rarely have to use my VISA card unless I want to.

SpacemanSpiff wrote: »

OK. So they have rewards but then so do a lot of cards.

Only very rarely do VISA/Mastercard products come anywhere near the earning potential of an Amex. Some do occasionally but these are the exception. The 2-4-1 voucher on the BA Premium Plus Amex blows most other credit card rewards out of the water.

SpacemanSpiff wrote: »

A lot of American Express cards also seem to want to charge a fee!!

Yes, as do many of the better VISA/Mastercard products. If you want a better product/service then you will have to pay for it - this is life.

If you use an appropriate card then more often than not you will get good value despite the fee. Not everyone will get value from a Platinum Amex with it's £450 per annum fee but many will do so with the Gold Amex as it has no fee for the first year.

It's all about doing the maths and working out if the fee will be offset by what you're getting back. The Platinum Cashback card is a perfect example. If you spend more than a certain amount, the higher cash back rate will cancel out the £25 annual fee.

SpacemanSpiff wrote: »

Am I missing something? Are there any advantages to Amex that you don't get with other cards?

Yes, good customer service, better rewards earning potential, regular and often generous promotions, pro-rata refunds on annual fees if you decide to cancel (unique as far as I am aware). Also, nobody is forcing anyone to apply for them.

Rosco32

Ive just got the Amex Platinum Cashback card with the Annual fee of £25. Ive got a promo of 5% CB if I spend up to £2500 in the first 3 months that will give me £125. After that I can make 1.25% CB on every £1 spent on the card. Then to top it off, if I spend over £10,001 within a 12 month period they up the CB from 1.25% to 2.5% for one full calendar month. Also they have a promo if you apply before 10/03 you get bonus £25 cashback which in theory would pay for the first years annual fee. I estimate in year 1, I will make £325, less the annual fee giving me £300 in total but that's based on my own spending habits. Ive only had the card one week but everywhere I've tried to use it so far has accepted it no problem. Amex also do charge cards, no preset credit limit, where I don't think you would get that on a standard Visa/MasterCard. You can also subscribe to the Foursquare promo which gives you further offers.

Sabbathdei

Aww did they decline you ?

SpacemanSpiff

Rosco32 wrote: »

Ive just got the Amex Platinum Cashback card with the Annual fee of £25. Ive got a promo of 5% CB if I spend up to £2500 in the first 3 months that will give me £125. After that I can make 1.25% CB on every £1 spent on the card. Then to top it off, if I spend over £10,001 within a 12 month period they up the CB from 1.25% to 2.5% for one full calendar month. Also they have a promo if you apply before 10/03 you get bonus £25 cashback which in theory would pay for the first years annual fee. I estimate in year 1, I will make £325, less the annual fee giving me £300 in total but that's based on my own spending habits. Ive only had the card one week but everywhere I've tried to use it so far has accepted it no problem. Amex also do charge cards, no preset credit limit, where I don't think you would get that on a standard Visa/MasterCard. You can also subscribe to the Foursquare promo which gives you further offers.

Did you get any other advantages?

Rosco32

Sabbathdei wrote: »

Aww did they decline you ?

Who, me? Declined what?

Rosco32

SpacemanSpiff wrote: »

Did you get any other advantages?

Highlights

• Get 5% cashback on up to £2,500 of purchases in your first 3 months of Cardmembership.1
• Earn 2.5% cashback on all purchases for one month every year if you spend more than £10,001 in your previous 12 months of Cardmembership.2
• An ongoing 1.25% cashback on virtually every full pound you spend.3
• Travel and shopping protection.
• Apply by 10th March 2014 and if approved get a bonus £25 cashback to get you started.1

Reward yourself

Enjoy a generous 5% cashback on virtually everything you buy for 3 months, on up to £2,500 in purchases. The only hard part is choosing what you’re going to turn all that cashback into.

• 5% cashback during your first three months on up to £2,500 in purchases.
• After the introductory period you’ll receive 1.25% cashback on virtually everything you buy – not just for a limited period.
• 2.5% cashback in the first month of every year if you spend more than £10,001 in your previous 12 months of Cardmembership.
• Complimentary Supplementary Cards for family members, generating even more cashback for your account.

Travel

Now you can take one more thing on your travels; total peace of mind, thanks to 24/7 back up from American Express.

• Global Assist® provides help when you travel outside the UK, in your own language, 24/7
• Travel Accident Insurance up to £150,000 on public transport when you buy your ticket with your Card.4

World class service

As you might expect from us, the service is a little bit special. You can phone, text or email us and we’ll get on the case. But we’re more generous than that:

• Eligible items you buy on your Card in the UK have Refund Protection. Items are covered up to 90 days and we’ll replace or refund up to a maximum of £300. Even if the retailer won't4
• You also get Purchase Protection. If you bought it on your Card and it’s stolen or damaged within 90 days, we'll replace or repair it, or refund you up to £2,500 per eligible item4
• Make your next night out a memorable one with American Express Invites, enjoy access to some of the most in-demand music, film and theatre events in town.

Rosco32

Declined as in Amex wouldn't authorise the payments or that those two retailers don't accept Amex?

Maestro.

Small towns and Amex aren't so good sometimes. I thought I was getting on fine as it works in the supermarkets but every independent retailer I've been to here looked at me like I had 3 heads and said "we don't take that". The odd person even looked at it funny and even when I said "do you not take this" they still didn't seem to understand why the machine didn't accept it. I even had it declined in a fairly fancy and upmarket restaurant in the city.

I got the green card as I wanted something that had a reputation for being backed by good CS, partly as barclaycard really !!!!ed me off over christmas.