Reduced AMEX earn rates from April 2019

[Melburnian1]

Good grief - this is essentially the worst 'airline devaluation' ever...

'

Further proof the the card issuers hold almost all the aces. Consumers have little power.

Are many better off simply purchasing good value (often 'sale') fares from any reputable legacy airline and paying little attention to these cards, save for retaining a lower fee one for convenience?

So many cases of unilateral devaluation.

 

[Prof Henry]

Is it better to
1. Transfer all AMEX Rewards points to an airline (obviously BEFORE 15 April); OR
2. Use the AMEX rewards points to purchase air travel (say, on QF) and get the airline points (and, more importantly, Status Credits) directly.

Will they still be called Loyalty Cards?

 

[ninja-tim]

Is it better to
1. Transfer all AMEX Rewards points to an airline (obviously BEFORE 15 April); OR
2. Use the AMEX rewards points to purchase air travel (say, on QF) and get the airline points (and, more importantly, Status Credits) directly.

Will they still be called Loyalty Cards?

Q1= Most will be transferring across to your favourite FF program if they've got plans for the points in the upcoming year(s) as a lot of FF programs have expiry on points once it hits your account.

Q2=Typically, Points for cash gives terrible redemption rates to the point that it defeats the purpose of collecting points. Depends how points rich or desperate you are for the flight as you can book any flight rather than search for award seats/flights on your FF program.

 

[theblank]

As for churning and burning this has become much harder with the new Comprehensive Credit Reporting brought in a few months ago.

thats misguided, there is no way its made point chasing harder for credit assessments . especially in consideration that so few lenders are reporting the information at this time.

If anything, it will be easier, because the lender can get a better overview of what other credit facilities that are open, as well as seeing a repayment history, which strengthens the applicants credit worthiness (if its good)

 

[Kremmen]

By the way, though marketroid wankers use verbs as any part of language that they feel like, the thing you're looking for to modify a noun is a present participle. Is there any chance someone could correct the thread title to use proper English. (e.g. "
Reduced AMEX earning rates from April 2019")

 

[JessicaTam]

By the way, though marketroid wankers use verbs as any part of language that they feel like, the thing you're looking for to modify a noun is a present participle. Is there any chance someone could correct the thread title to use proper English. (e.g. "
Reduced AMEX earning rates from April 2019")

"Earn rates' and "redemption rates" are part of the credit card (and other loyalty programs') language. As opposed to "earning" and "redeeming" rates.

 

[MR61]

As a self-funded retiree, I don't have the easy options of closing credit cards and applying for new ones. I lucked out just before I retired to get the Citibank Signature Visa card during a one week offer of no fee for life (an annual savings of $450) with a high credit rating. This card's rewards program devalued last year. Because of the no fee and high credit, I will always keep this card. On the other hand, my main go-to card is my platinum charge card. I've been a member for 20 years. I've had to sit down and work out the maths, pros and cons, as follows:

platinum charge card new annual fee $1,450
new higher travel credit ($450)
Platinum Reserve credit card travel credit ($400)
Net annual membership fee: $600

My key benefits: $850 travel credits. Shangri-la Jade. Hilton Gold. Accor free night/Silver status. Australian Financial Review membership. Targeted offers with rebates. Shop Small program with rebates. High credit limit. 55 day cash flow. Travel and medical insurance for my partner and I. Travel concierge. Last minute table bookings at restaurants. Fine Hotels and Resorts upgrades and credits. Seven years of accessible .pdf statements. Event offers. Extra year of warranty insurance on purchases. Fantastic fraud security systems. The best, simple and clear rewards program.

Okay, scratch that last one now.

Having said all of this, I still see value in keeping my Amex platinum charge card. There are tangible and intangible reasons I love this card. And I'll either transfer my 700k Membership Rewards points to Kris Flyer, and get my act in gear to take that long awaited round-the-world in first class trip with Singapore Airlines, or, if Amex doubles the value of account holder points, then maybe hold off. I still may have choices.

 

[rakeman]

eliminating foreign exchange fees

If they just did this, I'm sure a number of people would keep their cards. It's the only reason I have the bank west card for international travel purchases.

 

[potm]

If they just did this, I'm sure a number of people would keep their cards. It's the only reason I have the bank west card for international travel purchases.

It would be a start but the BW card would still be needed with Amex acceptance terrible in a lot of the world.

It’s a good earner for them and the competition isn’t there from premium MCs/Visas to force the change.

 

[robertjajajja]

if Amex doubles the value of account holder points, then maybe hold off. I still may have choices.

Unfortunately, seems AMEX already ruled out this future, according to Platinum Card Changes| Amex AU FAQ sections,

4. What happens to the points I have in my account on 15 April 2019?

Your points balance will remain the same, however the rate at which you redeem points will increase from 15 April 2019. This means you will need more points to redeem travel, hotels, experiences, goods and gift cards at eligible partners from 15 April 2019.

 

[Jstr]

Unfortunately, seems AMEX already ruled out this future, according to Platinum Card Changes| Amex AU FAQ sections,

Don't you just love the language they have used? "Your points balance remains the same, however the rate at which you redeem points will increase" - casually read, it's almost as if the program has become more valuable!!

 

[Pumbaa]

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.

My relationship manager told me the same thing. A letter has been sent to all Cent members, so should be interesting what it says. Could be an opportunity to move points to Marriott at the prior devaluation rate.

 

[Pumbaa]

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

I asked my Amex rep and he said there will be no changes to the Business Ascent program. It will continue to transfer @ 3MR:2FF. The companion business platinum charge will change to the new earn and burn rates tho

 

[ozstamps]

My relationship manager told me the same thing. A letter has been sent to all Cent members, so should be interesting what it says. Could be an opportunity to move points to Marriott at the prior devaluation rate.

If Amex double only some card category balances they will shoot themselves in the foot. BIG time.

I have had an Amex card for near 40 years and spend over $100,000 a year on it.

And it is not a Centurion Card.

Have over 1,250,000 in here now and even IF they doubled that to 2.5m in April can't see there is any real benefit to me if they halve airline transfer rates!

 

[amp-qld]

As a self-funded retiree, I don't have the easy options of closing credit cards and applying for new ones. I lucked out just before I retired to get the Citibank Signature Visa card during a one week offer of no fee for life (an annual savings of $450) with a high credit rating. This card's rewards program devalued last year. Because of the no fee and high credit, I will always keep this card. On the other hand, my main go-to card is my platinum charge card. I've been a member for 20 years. I've had to sit down and work out the maths, pros and cons, as follows:

platinum charge card new annual fee $1,450
new higher travel credit ($450)
Platinum Reserve credit card travel credit ($400)
Net annual membership fee: $600

My key benefits: $850 travel credits. Shangri-la Jade. Hilton Gold. Accor free night/Silver status. Australian Financial Review membership. Targeted offers with rebates. Shop Small program with rebates. High credit limit. 55 day cash flow. Travel and medical insurance for my partner and I. Travel concierge. Last minute table bookings at restaurants. Fine Hotels and Resorts upgrades and credits. Seven years of accessible .pdf statements. Event offers. Extra year of warranty insurance on purchases. Fantastic fraud security systems. The best, simple and clear rewards program.

Okay, scratch that last one now.

Having said all of this, I still see value in keeping my Amex platinum charge card. There are tangible and intangible reasons I love this card. And I'll either transfer my 700k Membership Rewards points to Kris Flyer, and get my act in gear to take that long awaited round-the-world in first class trip with Singapore Airlines, or, if Amex doubles the value of account holder points, then maybe hold off. I still may have choices.

Although it's very difficult, it can be possible to get a new credit card when you're a self-funded retiree. You have to make sure that your pension payments are clearly identified on your personal bank statements and it helps if they're the same each month for six months.

 

[Deleted member 71772]

Never had really good service from American Expres and no longer worth the trouble of managing multiple cards. I'll be cancelling my Amex Ultimate card.

 

[opusman]

My key benefits: $850 travel credits. Shangri-la Jade. Hilton Gold. Accor free night/Silver status. Australian Financial Review membership. Targeted offers with rebates. Shop Small program with rebates. High credit limit. 55 day cash flow. Travel and medical insurance for my partner and I. Travel concierge. Last minute table bookings at restaurants. Fine Hotels and Resorts upgrades and credits. Seven years of accessible .pdf statements. Event offers. Extra year of warranty insurance on purchases. Fantastic fraud security systems. The best, simple and clear rewards program.

For me, SPG Gold was the main benefit of the card, since I made use of the 4pm late checkout a lot. Once that went to 2pm, and with the devaluation of transfers to SPG/Marriott, the Platinum card was already marginal for me at best

I don't see the travel credits as "benefits", they're just something you can use to reduce the ridiculous cost of the card. And you have to remember to use them, and find something to use them on. If they were a simple statement credit it would be better but being forced to book through Amex Travel and not being able to combine the two credits makes them more of an inconvenience than anything else as far as I'm concerned.

Have used priority pass once or twice, have been to a couple of Centurion lounges, but not enough to justify even $600 a year let alone $1450.

With this latest devaluation I think I've got no choice but to dump it.

 

[Saltywings]

My key benefits: $850 travel credits. Shangri-la Jade. Hilton Gold. Accor free night/Silver status. Australian Financial Review membership. Targeted offers with rebates. Shop Small program with rebates. High credit limit. 55 day cash flow. Travel and medical insurance for my partner and I. Travel concierge. Last minute table bookings at restaurants. Fine Hotels and Resorts upgrades and credits. Seven years of accessible .pdf statements. Event offers. Extra year of warranty insurance on purchases. Fantastic fraud security systems. The best, simple and clear rewards program.

Like what @opusman has said above, I also disagree on the travel credits aspect. This is a common economic fallacy that even the best of us fall prey to: 'travel credits' are just cost-offset mechanisms. The economically rational would [correctly] note that you would be fiscally better off by not getting the card at all since it doesn't fully cover the AF.

For my take on it, hotel status is pretty finicky to value - I tend to stay with boutiques and Airbnb Luxury, which doesn't exactly inspire big chain loyalty. AFR is covered by my employer, and far less costly Amexes give access to most of the other stuff: shop small, statement credits, 55 day interest-free period and so on. The default limits on my cards are sufficient and I always BPAY in far more for anticipated big purchases (which is great as it stops me from impulse buying a $12k Chateau Le Pin). The restaurants I visit (when not in Sydney) to can't be nabbed even by centurion concierges, and I'm not much of a sports/concerts fan so event invitations are a pass. Amex insurance is just about the worst of the major CC players so that's a no-go with me either. I make a point to put $500 on my dragon so I get the insurance that goes with it.

Though I'm probably just preaching to myself: I never had a plat charge to begin with, though once did consider accepting a cent offer. Funny how that the cent's rewards program will actually now be slightly better - relatively speaking.

 

[robertjajajja]

Don't you just love the language they have used? "Your points balance remains the same, however the rate at which you redeem points will increase" - casually read, it's almost as if the program has become more valuable!!

I “love” them so much same as the “enhancement” from all major devaluation of any points provider. E.g. Asia miles and KrisFlyer.

In fact any time I accumulated enough points for a big redemption I will use it immediately so that I won’t be affected by any protential “enhancement” as most of the time those are just devaluation anyway.

 

[Bell21]

I think even more than most cards, the Amex platinum is YMMV --- I tend to get full value out of the travel credits and I easily exceed the AF through my use of all the perks, so will probably keep it (and I value ability to transfer to Qantas +) -- however, I run a small business so no one is already paying any of the cards benefits for me --- if some of the benefits were being paid by someone else (eg AFR, lounge access, car hire travel insurance, etc), then how I value the card would plummet quickly