Amex Blue, Worth It?

Brighty

Hi all

Applied for an Amex Blue card yesterday, with the intention of using it for all my future purchases to pocket the cashback. However after reading the thread on who does/doesn't accept it, i'm having second thoughts. I shop at asda so this will be where i clock up a large wedge of cashback. If i'm gonna have trouble using it there, is there another card i should get that will give me similar cashback. without the hassle?

Cheers

TheDink

I got an Amex Blue about 3 months ago and have so far managed to clock up a few thousand pouds worth of eligible spend - they double the cashback in the first three months then pay 1% on purchases over £2000.

I have used the card at Asda once and have used it at numerous other places. So long as you can spend enough to earn at least £5 cashback over a year, to ensure you don't lose the cashback, and spend over £500 on the card over a year (to avoid paying a fee for the card), it's fine.

Get yourself a Visa/Mastercard with cashback as a backup. Nationwide will pay 1% for the first 6 months, then 0.5% and I'm sure there are still plenty of others paying 0.5% and maybe more.

johnllew

Morgan Stanley pay 1% up to the first £2000 - we use it as a backup where Amex is not accepted (not that many places really).

JohalaReewi

I guess the reason some Asdas don't accept Amex is because it doesn't yet have chip and pin and supermarkets are rolling out chip and pin tills. Our Tescos told customers they would only be accepting cards with chip and pin but they still accept Amex and a signature. However, Amex say chip and pin is coming in Jan 2005 (my Blue card already has a chip on it). Also garages, hotels and other major outlets take Amex so it is possible to spend a fair bit on an Amex card. Just get a cashback VISA as a backup for when Amex is not accepted.

Beware of using Amex for non GBP purchases. All foreign currency transactions are converted to USD then to GBP so you get a double whammy. Better to get a Nationwide card.

Joe_Bloggs

Amex should pull their finger out regarding chip 'n' pin. I doubt that they will be able to retain their lofty place in Martin's purchase card article here.
It's getting embarrassing to use the card. Some time in 2005 for the chip 'n' pin numbers is not good enough !
J_B.

MarkyMarkD

A large proportion of my cards are still not Chip & PIN. There's no way that the shops can stop accepting signature cards at this stage: the full roll-out isn't meant to be complete until the middle of 2005 IIRC.

Tim_L

I've had no problems at Asda either with my Amex Blue card or with my Capital One Circle rebate which also has no chip and pin (I'm one of the lucky few that still has a 1% rate on this). I use two different stores regularly, and just sign the bill as previously.

westernpromise

Hi all

Applied for an Amex Blue card yesterday, with the intention of using it for all my future purchases to pocket the cashback. However after reading the thread on who does/doesn't accept it, i'm having second thoughts. I shop at asda so this will be where i clock up a large wedge of cashback. If i'm gonna have trouble using it there, is there another card i should get that will give me similar cashback. without the hassle?

Cheers

The Amex Platinum is marginally better than the Blue provided you spend enough.

Loads of people take Amex and I've never found acceptance much of a problem. British Rail stations take it, pretty well all petrol stations take it, Tesco, Sainsburys, Waitrose, and M&S take it, almost all restaurants take it, Starbucks takes it, Amazon takes it, PayPal takes it, almost all department stores take it (John Lewis being the exception).

You do need a backup card though, and I have a Nationwide as a reserve.

I've racked up shedloads of cashback this way this year. I collected £116 in January from my Accucard, £195 with an Amex Blue in August, and I'm expecting another £60 in December from Nationwide. I've also collected £43 so far on my new Amex Platinum, though I don't see that till August, and I've got another £27 coming in January from Accucard.

About £400 a year, basically. This and the 18866 phone deal are the two most lucrative tips I've picked up off this site, worth at least £600 a year to me.

Brighty

I got myself a sainsbury's card instread.

Instead of paying it off each month, i'm gonna pay the money into my savings account.

When my 0% for 12 months is up i'll pay it back from my savings account leaving a nice wedge of interest behind. Far more than any cashback card would give me

westernpromise

Far more than any cashback card would give me

Some months ago I worked out, and posted here, what the 0% on purchases is actually worth, assuming one does what you said. Can't find the thread unfortunately.

ISTR though that if you pay the card the minimum, deposit the difference between minimum and total monthly balance in a savings account, then withdraw those savings and pay off the balance just before the deal expires, it equates to a refund of 0.9% of what you spent.

It depends on what assumptions one uses about deposit rates, tax, etc. But overall, although it's not better than the very best deal going, it's still pretty good. Most cashback cards pay 0.5% these days and more is exceedingly rare.

Brighty

I just worked it out, assuming a £500 a month spend, deposited at 5.35% in my A&L Savings account (assuming monthly interest) paying the minimum payment each month of 3% (i assumed £15 and mutiples there of for simplicity) After the 12 months is up, i'm left with over £125 after tax at 20% on a 6k spend. I make that 2.08%. What am i missing?

Brighty