Post 15 April Strategy (or why i'll probably move to Plat card)

[mrtupperware]

Background

I currently have the Plat Edge linked to Explorer combo. I won't get into what a point is worth, but if you use RP and the other platforms using the above combo we are looking at circa 1.3c per point (including GST etc).

This will be hard to match but i've done some research and keen to hear everyones thoughts about my strategy going forward.

Post 15 April-calypse

I analysed both the US Platinum and the Amex USA SPG card. Assuming you can use these cards locally through payment platforms, on $840k spend p.a. you will get just over 600k airlines miles or 500k, respectively.

This gives an AUD cost per point of over 3.7c / 4.4c.

There are the benefits of lots of other transfer partners etc, but its pretty pricey.

The other card I considered is the Citi Prestige card. Assuming there's a 0.8% fee on Visa cards (for business transactions) the cost per point will be just under 2 cents. Not bad especially if you use hte 4th night free benefit.

The card i'll probably stick to is Amex Plat Charge, the cost per point is going to be 76% higher (2.3c) than my current cost. I will cancel my Explorer / PE as post April they are pretty useless

1. I think the payment platforms will drop their fees to reflect the new Amex cost (they have to especially after Amex said they reduced fees)
2. Insurances, AFR, travel credit are all things I use so the cost of the card works out to be the same as the Citi card
3. Better transfer partners than Citi (although cost per point is slightly higher)
4. The 4th night free is good but you don't get any status
5. I'll probably get more benefit from FHR


Thoughts / feedback appreciated

 

[albyd]

I agree with your thinking.

US Amex, with the AUD at US70c means that the US cards don’t have a significant points advantage over Australian issued Amex.

Post April, Edge & Explorer lose their current points earn advantage over Platinum Charge. The Charge becomes the best earner (makes sense since it’s the most expensive).

Payment facilitators ie RewardPay & B2BPAY will need to adjust their fees down for the new regime or risk losing their more points savvy customers (I wonder what proportion of all payments are points savvy and understand the value of the points they’re earning).

I’m on the ropes about Citi Presige. Depends on what categories you spend and likely those merchants will already accept Amex with a similar or better earn rate.

For me, the current best non Amex earner is the Dragon Visa. All depends on what reward you want. This card has a narrower range of transfer partners than Citi’s but it’s easier to understand - you currently get the same earn rate regardless of the merchant type.

 

[mrtupperware]

I agree with your thinking.

US Amex, with the AUD at US70c means that the US cards don’t have a significant points advantage over Australian issued Amex.

Post April, Edge & Explorer lose their current points earn advantage over Platinum Charge. The Charge becomes the best earner (makes sense since it’s the most expensive).

Payment facilitators ie RewardPay & B2BPAY will need to adjust their fees down for the new regime or risk losing their more points savvy customers (I wonder what proportion of all payments are points savvy and understand the value of the points they’re earning).

I’m on the ropes about Citi Presige. Depends on what categories you spend and likely those merchants will already accept Amex with a similar or better earn rate.

For me, the current best non Amex earner is the Dragon Visa. All depends on what reward you want. This card has a narrower range of transfer partners than Citi’s but it’s easier to understand - you currently get the same earn rate regardless of the merchant type.

Dragon visa? Do you mean St George Bank? I was thinking about this one as well, the earn rate if you don't spend much in the bonus categories is not bad, but I think if i'll go for a Visa earning card i'll probably go for the Citi card - the benefits justify the higher price compared to the St George one

 

[hossein_au]

I use your exact line of thinking on deciding what card to use. As AL suggested, Dragon Visa seems to be the best option at the moment: costing about 0.8% at various merchants and earning about 0.8 points (0.75 straight earn, plus 10% birthday bonus bringing the earn rate up to 0.825 points). This equates to around 1 cent per point (or slightly better).

Also note that these figures are inclusive of GST. This is better than most AmEx cards even now, and FAR better than any AmEx card post April (RP charges 2.4% excluding GST).