Reduced AMEX earn rates from April 2019

[zenyattamondatta]

I wonder if Amex themselves will start to consolidate their card offering.

There's also been talk of allowing more than one (Reserve-like) free card for Charge holders, which would make at least some sense to me.

 

[JQ29]

Amex Corporate Card (1.5) + Amex Centurian (2.5) earn rates up... maybe some compensation if you can get these cards...

 

[andye]

At least there is a logic in the highest-fee cards having the best standard earn

 

[unfunkable]

Amex Corporate Card (1.5) + Amex Centurian (2.5) earn rates up... maybe some compensation if you can get these cards...

Transfer rates are the problem....50% less

 

[chk123]

I had a chat to the customer reps and they justified the fees changes based on global changes. I said I'll quickly compare some of your products, plat charge annual fee here vs overseas, gold card here vs overseas. In the 3 minutes of googling, I was quickly impressed by the gold card in America, 4 points in restaurants/supermarkets, rose gold colored card, $120 restaurant credits & $100 travel credit for $250 fee, the agent didnt have much to say after that.....anyway I dont see why I would have an amex in the next few months anymore which is a shame, I had planned on getting the plat charge even with the price rises. I'll probably find a fee free rewards credit card or sign up for free/discounted annual fee cards and churn before the annual fee normally in the 2nd year. Customer service standards have dropped significantly

 

[johnny_yh2000]

Consider we all have dislike the changes happening. Why dont we voice out directly to amex either over the phone or email? Droppeing the earn rate seems expected, but not dropping the points redeem rate as well!! By dropping the points redeem rate means all your hard earn points in the past also gets devalued as well. The longer you have been with amex, the harder the face slap from amex...

 

[fkcn]

Consider we all have dislike the changes happening. Why dont we voice out directly to amex either over the phone or email? Droppeing the earn rate seems expected, but not dropping the points redeem rate as well!! By dropping the points redeem rate means all your hard earn points in the past also gets devalued as well. The longer you have been with amex, the harder the face slap from amex...

 

[fkcn]

One of the previous posts suggested that a rep stated current points held would be doubled to compensate for devaluation, with subsequent points obviously devalued. Although this doesn’t seem to be official line, would be much fairer to long-term card holders with lots of points. Either this, or putting older points in a different redemption ‘bucket’ at older rates might also mitigate card cancellations.

 

[Kevin Chan]

Seems the consensus here on the Explorer is that it is not worthwhile anymore.

But from my point of view. You get your annual fee back through $400 travel credit, which I will use every year. There're all these little rewards like Shop Small, Fashion Night Out etc. Sure this sucks. But it's not really costing me a lot to keep it.

Also, will there be reduction to the card payment fee at ATO? Their card payment fee is supposedly "equal to the fee we incur from our bank" and "reviewed from time to time and may change". If it's for business that's also tax deductible (that's me). Points earned when up from 0.5 to 1 after April 19.

 

[theblank]

I had a chat to the customer reps and they justified the fees changes based on global changes. I said I'll quickly compare some of your products, plat charge annual fee here vs overseas, gold card here vs overseas.

To be fair, you are comparing the future AU benefits, to the current global benefits.

Reward and FF points are on a continuing decline. This devaluation is not occurring until for another 6 months. These comparison arguments need to be made when it’s the due time for it to have any weight.

I will bet the house that most ViSa/MC will be paying 0.33ppd within 12 months, and Amex will still be the best earner.

 

[chk123]

To be fair, you are comparing the future AU benefits, to the current global benefits.

Reward and FF points are on a continuing decline. This devaluation is not occurring until for another 6 months. These comparison arguments need to be made when it’s the due time for it to have any weight.

I will bet the house that most ViSa/MC will be paying 0.33ppd within 12 months, and Amex will still be the best earner.

As far as im aware both cards were recently changed in America.

 

[calgarychris]

Well it's been said by many, but for me the biggest issue is the effective transfer rate cut (i.e. to existing balances). I have no issues with the revised earn rates, fair enough, but Amex is punishing its existing customer base which in my case will see us definitely consolidate our Amex portfolio and possibly dump it entirely. I've been pushing all of my spend on Amex these past couple of years using a churn and burn with my backup V/MC, time to re-evaluate and perhaps move to full churn and burn. The unfortunate thing is, I like the benefits of the charge, primarily lounge access. So I'm also looking at whether it makes sense to buy VA/QF lounge (through sal sacrifice) and deal with drop in earn. I'll be interested to see what folks are doing strategy-wise and will be keeping a close eye on this and other threads...

 

[chk123]

Also to be fair, it would be best to see what mc/visa do in the future before speculating on any changes, if any, that might happen for your point to have any weight.

To be fair, you are comparing the future AU benefits, to the current global benefits.

Reward and FF points are on a continuing decline. This devaluation is not occurring until for another 6 months. These comparison arguments need to be made when it’s the due time for it to have any weight.

I will bet the house that most ViSa/MC will be paying 0.33ppd within 12 months, and Amex will still be the best earner.

 

[lovetravellingoz]

Well it's been said by many, but for me the biggest issue is the effective transfer rate cut (i.e. to existing balances). I have no issues with the revised earn rates, fair enough, but Amex is punishing its existing customer base which in my case will see us definitely consolidate our Amex portfolio and possibly dump it entirely. .

Well yes maonly matters is how many points land at your preferred FF program, and how many points your program charges for the flights you want. Though redemption availability, flight quality, routing etc are also factors.

The Amex sky is not falling, but yes has lowered. Amex will still earn more than most VISA/MCs in terms of points landing at your preferred FF program.

I've been pushing all of my spend on Amex these past couple of years using a churn and burn with my backup V/MC, time to re-evaluate and perhaps move to full churn and burn. ...

Look I lover churn and burn too. But remember too that if the Amex sign-on bonuses remain about the same, that their attractiveness for churning will have been halved too. So the churn and burn of Amex will also not be what it was.

Those that were sitting out 18 months waiting for a churn payday will now have had that slashed. Meanwhile I still have 5 months to make the most of the current rates. I am certainly way, way in front of having churned the card on points alone (earn, sup bonuses, new Amex joining bonuses), and then there are the regular cashbacks and other benefits.

After that will have to re-assess.

• One factor for me is that KF is my favourite FF program and come April 2019 my and my wife's accounts are going to be bulging at the maximum that I am comfortable with. So I NEED somewhere to store FF points that can go there and Amex is still going to earn my many points. Quite possibly keeping will still be more lucrative than churning an Amex (particularly as there still seems to be some Amexes that you still earn sign-on bonuses for despite the 18 month rule as I have had two lots of Westpac issued Amex bonuses in the last 2 months)
• I can store some at STG, but earn is less than Amex.
• What one can earn points wise varies with how creative you are. Though some with businesses ahve more ways to exploit earn.
• Another factor is that QFF is such a poor program IMO (or at least for my circumstances). So yes easy to earn lots of churn points to it (sometimes free, but often there is some cost), but often costly to use $$$wise due to fuel fines, and availability is poor without status. Velocity is also not as attractive as it was. One can arguably buy Lifemiles etc (not that I use that way) to get the flights and availability one wants.

 

[Cynicor]

Mate with a Cent reckons he was also told that Cent card holders will have account balances doubled in April. Anyone with a Cent able to confirm?
I think it is highly unlikely.

 

[theblank]

Also to be fair, it would be best to see what mc/visa do in the future before speculating on any changes, if any, that might happen for your point to have any weight.

We have already seen Westpac reduce their transfer rates earlier this month, making most cards earn at 0.33ppd

Put your seatbelt on

 

[ninja-tim]

Anyone with news re: Business Ascent program devaluation? It's transfer rate is currently at 3mr:2ff

 

[unfunkable]

Well it's been said by many, but for me the biggest issue is the effective transfer rate cut (i.e. to existing balances). I have no issues with the revised earn rates,

I agree with this. I got first world problems, of more points then I can spend in 3 years, I understand they need to reduce transfer rates etc, but at least let the current value of point's stand!

 

[Jstr]

I think:

1. The "party" of churning/burning for sign-up bonuses hurts AMEX, and is effectively propped up by those who don't or can't churn. I think this practice is therefore unfair and clearly not what AMEX intends to achieve. AMEX should stop doing this and come up with a better idea that will actually retain card holders.

2. The sign-up bonuses is intended to attract new users who will continue to use the card after the bonus earn. AMEX could, for example, spread-out the bonus earn criteria to something like $1k a month spend out of at least 8 out of the next 12 months - something that would actually encourage user habit-forming and prevent rapid churning.

3. Offers like "small shop" and all might soon discontinue. It makes sense that AMEX encourages us to try to use AMEX for the small shops to indicate that AMEX is now widely accepted (both to the cardholder and to merchants that are yet to sign up) - I myself have been surprised by the fact that some local small shops actually accept AMEX without surcharge. Now that it is becoming more widely used and accepted, there may no longer a need for such offers.

4. I think if the merchant fee is dropping as per law, then businesses like RewardPay should pass on the drop in order to be relevant and viable. Users of RP should contact them to voice this opinion.

5. It makes sense that point-earn rate should be higher for cards that have a higher annual fee.

6. Once the points-tier differentiation is gone, lots of cards can be consolidated and disappear from being offered altogether.

7. Rewards like offers and airline conversion bonuses can be offered for loyal users who spends a certain amount every year or who appears to be using the cards on a regular basis.

8. AMEX can hire me to discuss these great ideas

 

[Cynicor]

Haha. Good one. No company focuses on the customers who stay with them, and Amex are no different. They are taking advantage of the huge difference in the market to cut value, and they won't offer anything to the existing base. Really, they have improved the churn/burn proposition quite markedly.