Amex card advice

book12

I'm thinking of applying for an Amex charge card. I've narrowed it down to the following:

The Basic Card - no annual fee, no rewards
The American Express card - £60 annual fee, membership rewards

I'm still thinking of which one to get, and if the membership rewards are worth it.

I've checked the 'Who Accepts Amex' site, and the places I go to (in-store and online) but things most of the time accept it. However, I'm not sure if they accept online only, in-store only, or both.

I have the following queries:

• What is the salary requirements for the charge cards mentioned above (doesn't say on the website)?
• Do the charge cards have contactless facility?
• Charge card have no expiry date - can't see it on the picture. Is this correct?
• Other charge cards can be applied online, except for the Basic Card - why is this?
• Do they give an instant decision after submitting the application?
• Regarding shopping at supermarkets and other places - do they both in-store and online, or just in-store?
• Since there's no 'credit limit', how do they determine which transactions to put through or decline? For example, I don't want to go do food shopping or shop online and find the transaction declined.

Despite a lot of places accept Amex these days, I haven't seen someone pay with it in-store yet.

MallyGirl

what is the thinking behind a charge card rather than a credit card? you could get a credit card, pay in full every month like a charge card but pay no fee and get cashback

concernedSaver

What is the salary requirements for the charge cards mentioned above (doesn't say on the website)?

There isn't any. There used to be one, but it was dropped for the UK-issued charge cards.

Do the charge cards have contactless facility?

Yes, they do.

Charge card have no expiry date - can't see it on the picture. Is this correct?

They do have an expiry date.

Do they give an instant decision after submitting the application?

Application may get referred; however, I got an instant decision.

Regarding shopping at supermarkets and other places - do they both in-store and online, or just in-store?

The major supermarkets accept Amex both online and in-store.

Since there's no 'credit limit', how do they determine which transactions to put through or decline? For example, I don't want to go do food shopping or shop online and find the transaction declined.

There's a per-transaction limit, i.e. you might get rejected for £2,000 and accepted for 1,000. You can usually phone them and ask what your limit is (it's quite high, so it's unlikely to reach without realising).

what is the thinking behind a charge card rather than a credit card? you could get a credit card, pay in full every month like a charge card but pay no fee and get cashback

MR points are quite good to transfer to frequent flyer programs, and for some people they have more value than cashback. They can also be used to get statement credit against any transaction (effectively a 0.4 cashback) or to buy stuff on Amazon.

The_Urbanite

book12 wrote: »

I'm thinking of applying for an Amex charge card. I've narrowed it down to the following:

The Basic Card - no annual fee, no rewards
The American Express card - £60 annual fee, membership rewards

I'm still thinking of which one to get, and if the membership rewards are worth it.

I've checked the 'Who Accepts Amex' site, and the places I go to (in-store and online) but things most of the time accept it. However, I'm not sure if they accept online only, in-store only, or both.

I have the following queries:

• What is the salary requirements for the charge cards mentioned above (doesn't say on the website)?
• Do the charge cards have contactless facility?
• Charge card have no expiry date - can't see it on the picture. Is this correct?
• Other charge cards can be applied online, except for the Basic Card - why is this?
• Do they give an instant decision after submitting the application?
• Regarding shopping at supermarkets and other places - do they both in-store and online, or just in-store?
• Since there's no 'credit limit', how do they determine which transactions to put through or decline? For example, I don't want to go do food shopping or shop online and find the transaction declined.

Despite a lot of places accept Amex these days, I haven't seen someone pay with it in-store yet.

To the best of my knoweldge;

1 - Not strictly fixed.
2 - All the Amex cards I've had in recent years have had a contactless facility.
3 - No, the card will have an expiry date
4 - No idea, best to ask Amex
5 - Sometimes they do, other times they need to review your application
6 - Like a debit or credit card, they work in-store and online, where accepted
7 - They do have a credit limit, which until recently wasn't really disclosed. Now you can get a good idea as they allow you to check your "spending power", to see if a high value purchase will be approved. I wouldn't worry about shopping bills or the like, unless you plan to default regularly or do your shopping at the House of Bijan. My "spending power" is several times higher than any credit limit I have.

The_Urbanite

MallyGirl wrote: »

what is the thinking behind a charge card rather than a credit card? you could get a credit card, pay in full every month like a charge card but pay no fee and get cashback

The business models are different. Credit cards generate profit from interest on purchases/cash transactions and recover some costs through merchant fees. Charge cards generate profit through an annual fee in return for benefits that add value, such as points schemes and insurance cover. They also get revenue through merchant fees and I guess a few people do pay late, which I suspect comes at a price.

I suppose if you have a Basic Amex, it's easier for them to convince you to take one of their fancier products. Their customer service is pretty ace.

Personally I find cashback credit cards about as exciting as 5% current accounts that give up to an enthralling £9 back a month. Unless you're spending huge amounts, they just don't seem worth it to me. Some of these charge cards give a huge amount of bonus points for meeting a spend target, which can set you well on your way towards a flight redemption. Perhaps the OP should have a look at the free Amex Gold Credit card deal being offered through MSE.

MallyGirl

The_Urbanite wrote: »

The business model is different. Credit cards generate profit from interest on purchases/cash transactions and recover some costs through merchant fees. Charge cards generate profit through an annual fee, which in return you get benefits that add value. They also get revenue through merchant fees and I guess a few people do pay late, which I suspect comes at a price.

I suppose if you have a Basic Amex, it's easier for them to convince you to take one of their fancier products. Their customer service is pretty ace.

Oh I know - I am very happy with my Amex CC and it has good offers (shop small, 1.25% cashback for now and 0% on purchases). I was just wondering why, as a consumer, you would choose an Amex chargecard over an Amex CC.

I still find the odd place that either has a surcharge for Amex (my vet) or won't take it at all (pet store, timsons key cutting) but most places are fine these days. There are a few places that won't do Amex contactless (starbucks at the station).

The_Urbanite

MallyGirl wrote: »

Oh I know - I am very happy with my Amex CC and it has good offers (shop small, 1.25% cashback for now and 0% on purchases). I was just wondering why, as a consumer, you would choose an Amex chargecard over an Amex CC.

I still find the odd place that either has a surcharge for Amex (my vet) or won't take it at all (pet store, timsons key cutting) but most places are fine these days. There are a few places that won't do Amex contactless (starbucks at the station).

I had Amex Gold then upgraded to Platinum - it's mostly the bonus MR points offers as I collect points in various airline and hotel schemes. That said, I've shed them and replaced with some of their credit cards instead - I use whatever works best of me at the time. Personally I'm indiscriminate between credit cards and charge cards as I don't borrow money from cards, but I guess charge cards are slightly easier to be approved for and the benefits package may be more attractive for some.

Yawn

I'm a great fan of Amex cards and have had several, which have earned me a few free (well, discounted) flights. I've had the Amex gold card, which is a charge card and which offers a nice sign on bonus and a few good perks (notably lounge access). I would not go for it or any charge card, if it doesn't offer any rewards at all. What's the added value? And why risk your credit score for it?

robwalker

The only thing I'd add to the answers to your questions is that although Amex cards are contactless, they might as well not be! Mine is rejected more places than it's accepted when I try contactless. Today it failed in Asda, Cafe Nero and at the train station. All three places accepted the card via chip and PIN, I've no idea why but I'm fairly sure it's not a problem with my card specifically.

You should look at the Gold rewards card. No fee in the first year, and you get 20,000 points for spending £2000 in the first 3 months. If you can spend a total of 15k in 12 months, you get another 10,000 points bonus (plus 15k for from the actual spend).

So that would be 45,000 points which are worth £225 minimum. Possibly a lot more if you transfer them to Avios or one of the hotel schemes. After 12 months you can downgrade to one of the cards you mention to avoid the fee. That said, the £140 fee can be justified if you continue to spend £15k a year as you'll get 25,000 points a year. That plus the airport lounge access makes it reasonable value in my book. Even if you cancel part way through your second year, Amex will give you a pro-rata refund.

Let me know if you want a referral for an additional 2000 points ;-)

theburningcat

> What is the salary requirements for the charge cards mentioned above (doesn't say on the website)?

I asked a few people at Amex how eligibility varies from card to card and answers varied from "it doesn't" to "it does according to the colour".

> Do the charge cards have contactless facility?

Yes

> Charge card have no expiry date - can't see it on the picture. Is this correct?

They have an expiry date

> Other charge cards can be applied online, except for the Basic Card - why is this?

To discourage people I guess

> Do they give an instant decision after submitting the application?

Usually, yes.

> Regarding shopping at supermarkets and other places - do they both in-store and online, or just in-store?

In general, both. Strangely, IKEA only takes them in store.

> Since there's no 'credit limit', how do they determine which transactions to put through or decline? For example, I don't want to go do food shopping or shop online and find the transaction declined.

There is a limit but it varies according to your spending patterns and they won't actually tell you your limit. On the website and on the phone, you can find out if a transaction amount will be accepted. As a rule of thumb, 1.5 months salary was fine when I first got the card. Now, I am able to put at least 3x that on the card.