Platinum Cashback Everyday Credit Card after first year

anna42hmr

Can any one confirm ref the Platinum Cashback Everyday Credit Card.

we took it out last October, so we will be receiving the cash-back after the statement of the anniversary. This year we earned a higher level of cash back for the first few months (5%) then dropped to standard rates.

However, how does earning cash back work after year 1 is over?

Does it go back to the lower cash back rate of 0.5% after the anniversary until spend enough to get back to the 1 and 1.25% levels, or does it depend on what has been spent in the rolling 12 months prior (and as such could still earn 1/1.25%?.)

nidO

According to Amex's terms, as long as you maintain a spending history of £7500+ in the preceeding 12 months you'll retain your 1.25% - ie it doesn't reset every account anniversary.

Drp8713

Back to 0.5% again unless you were a high roller until you have spent another £3.5k

keiran

If you spend more than £3333 per annum on your Amex card, you're better off getting the Platinum cashback card, which has a £25 fee but much better cashback - 5% on £2500 for the first 3 months and then 1.25% on all spending thereafter

I can show you the maths if interested. There's also a £25 referral statement credit for both parties if you apply and are successful

nidO

Drp8713 wrote: »

Back to 0.5% again unless you were a high roller until you have spent another £3.5k

keiran wrote: »

If you spend more than £3333 per annum on your Amex card, you're better off getting the Platinum cashback card, which has a £25 fee but much better cashback - 5% on £2500 for the first 3 months and then 1.25% on all spending thereafter

I can show you the maths if interested. There's also a £25 referral statement credit for both parties if you apply and are successful

I'd be curious to know whether either of you actually have a platinum everyday card to know this directly.
I ask because people seem to routinely assume that your cashback drops back to 0.5% every year (and your maths of the £3333 limit for the fee-paying card is based on that) but Amex's terms document for the everyday card is clear that the threshold for earning 1.25% is spending over £7500 in the preceeding 12 months NOT in the current card year, which means it doesn't "reset".

keiran

Fair point - but surely Amex could make this issue clear - it must be a very common question - from all Everyday card holders as the year anniversary approaches!

Pl will the OP let us know what happens

(I only have the Platinum card)

B19JON

After your cashback has been paid, you will drop down to 0.5 % rate & start the tier process again.

villieb

keiran wrote: »

If you spend more than £3333 per annum on your Amex card, you're better off getting the Platinum cashback card, which has a £25 fee but much better cashback - 5% on £2500 for the first 3 months and then 1.25% on all spending thereafter

I can show you the maths if interested. There's also a £25 referral statement credit for both parties if you apply and are successful

Can you show the maths behind this please?
Thanks

keiran

The Platinum Cashback has a £25 charge and gives 1.25% on all spending (5% on first £2500 in 3 months)

The Everyday Cashback has tiered rates (and 5% on first £2000 in first 3 months):-

Spend £0 to £3,500 and receive 0.5% cashback on that spend
Spend between £3,500 and £7,500, receive 1% cashback on that spend
Spend over £7,501 and receive 1.25% cashback on that spend

The point at which the Platinum becomes better than the Everyday card is £3333 - if you spend more than this per year, you're better off paying the £25 and getting 1.25% on all further spending with the Platinum card

£3333 * 0.5% = £16.67 with Everyday card
£3333 * 1.25% - £25 = £16.67 with Platinum card

As the Everyday card pays ZERO cashback if the annual spend is less than £3000, this card is rational only for those people who know, in advance, that they will spend between £3000 and £3333 over the year(!)

Bear in mind that the £25 will be covered in the first year anyway if there's been a friend referral. - I can be anyone's friend

Another idea is to get both, over a period of a few months, to get the 5% rate on £2500 with the Platinum card, and then 5% on a further £2000 on the Everyday card

anna42hmr

Thanks for the replies all, to clear up the matter i contacted amex to check, and they have responded with the following:


Dear xxxx

Hope you are doing well.

I will certainly check this for you.

Your Cashback will be applied directly to your card account once a year, on the statement that follows your anniversary date. As your anniversary date is on 21st October, you will see the Cashback Credit on your November statement.

Your Cashback Balance as of todays is £xxx.xx.

You have spent £xxxx within this Card Anniversary Year. I confirm that every year after the Cashback rebate is credited to your account, the Cashback earn rate defaults to level 1 tier.