Best reward card when Amex drops cashback rates

pardal51

Hi all,

Currently spending on my Amex Platinum (0.5% up to £3,500 then 1%) trying to maximise cashback (using CapitalOne for everything else). I do not think there is a better cashback card on the market at the moment.

Question: Just preparing for Amex dropping the cashback rates, what would be the best credit card in terms of maximising/getting something back, i.e., airmiles, nectar, clubcard, etc?

lisyloo

What make you think Amex would drop cashback rates?

Were you aware they aren't subject to the same rules as visa/mastercard so the direct reason for dropping rates doesn't apply to Amex.

What' your thinking?

Why don't you get a 5% Amex card for your Xmas shopping?

pardal51

lisyloo wrote: »

What make you think Amex would drop cashback rates?

I thought/think they would/will follow Visa and Mastercard eventually

lisyloo wrote: »

Were you aware they aren't subject to the same rules as visa/mastercard so the direct reason for dropping rates doesn't apply to Amex.

I was not aware of that, thanks for pointing it out. WHere did you get the info from?

lisyloo wrote: »

What' your thinking?

Why don't you get a 5% Amex card for your Xmas shopping?

Would they give me another Amex card? I do not foresee spending much for Xmas anyway.

nidO

When the details of the regulations limiting Visa and Mastercard prices hit and all the other cards started dropping their cashback rates, Amex promptly put the interest up on their credit cards.
Hopefully, this is their answer to the eventual need for their rates to be dropped instead of lowering cashback (Amex will be subject to the price limit in a couple of years and regardless of this they will undoubtedly need to lower their processing fees in any case to remain worthwhile for merchants, their historically high fees are probably untenable with Visa/Mastercard now being much cheaper).

reclusive46

Amex isn't affected in three years. But third party Amex cards will be potentially in three years (This will be reviewed).

Amex won't have to change its fee that much for small and medium sized businesses because merchants won't see a much lower rate.

All that will happen is the merchant's bank will take most of the difference.

I.e. Interchange is currently 2%, Barclaycard charges their merchant 3%. 1% profit for Barclaycard

Interchange now goes to 0.3% Barclaycard still charges merchant 3%. 2.7% profit for Barclaycard.

The merchant bank fees are not being capped, just the fee between card network and merchant bank.

This has happened in both Australia and Spain where capping has occurred and in the US, other fees went up for merchants (Charges like a connection/gateway charge for each transaction).

All American Express has to do is match the rate Barclaycard or whoever is charging the merchant.

lisyloo

Amex will give you 5% for 3 months.
Most people try to time this around Xmas or a big purchase so they can maximise the cashback.
You would need to spend at least £3k in the year to qualify.

You get some free insurance and they do extra cashback offers from time to time. I've had an extra £15 from cafe nero & the trainline, so if your inclinded to check up for these things then there is extra to be had at some high street names.

Things may change in 3 years time, but I wouldn't base any decision on speculation that far out.

All American Express has to do is match the rate Barclaycard or whoever is charging the merchant.

I think they need to offer better deals, because it's not universally accepted and there has to be some benefit to offset the hassle of operating and carrying multiple cars.
Fortunately they do offer better rewards, insurance and customer service so for those who are willing to put a bit of effort into taking advantage then it can be worth it.

reclusive46

lisyloo wrote: »

I think they need to offer better deals, because it's not universally accepted and there has to be some benefit to offset the hassle of operating and carrying multiple cars.
Fortunately they do offer better rewards, insurance and customer service so for those who are willing to put a bit of effort into taking advantage then it can be worth it.

Sorry I was referring to the fact all they have to do is charge the same to the merchant as say Barclaycard merchant services do and they'll still make a lot more money on the transaction than other banks(as they have to share it out).