Reduced AMEX earn rates from April 2019

[Bell21]

I wrote this article earlier in the week that relates to airline loyalty programs but could be applied to cards/amex - Disrupting Airline Loyalty – The billion dollar risk airlines are taking

However, this image perfectly explains the risk Amex is taking with a subset of their member base:

Oh, a bit of Peter Senge's Fifth Discipline if I'm not mistaken - nice work!

 

[Bell21]

Even at 2.4%+GST RP is too expensive, beyond reasonable. I have been putting lots through another system that only charges 0.8% (inc); albeit they only accept VISA or MC (my current VISA/MC earns around 0.8 points per dollar, which makes this system effectively costing about 1 cent per generated point (inc GST)).

which provider is this?

as amaroo said above, from my perspective, RP isn't too expensive at 2.4%+GST IF I'm earning 2 points / $, as that's circa 0.9 cents / point, but I value RP as costing me even less than 0.9, since it gives my business the opportunity to pay expenses at 55 days from the start of the next billing cycle (without delaying payment to suppliers), which is also a notable cash flow benefit

 

[amaroo]

I reached out to RP as that's what probably impacts on my ability to generate lots of points, and they said they were aware of the impact and are in discussions with amex --- whilst I might keep my amex plat, I would absolutely stop RP at 2.4 per cent post devaluation (as many of us would of course)

Lets hope they come to a deal with Amex and halve their fee. I'm only a new user with RP (3 months) but have built a stock pile >1.3m MR using RP. We still have 4 1/2 months to slam it if they don't offer a better fee. But I'm pretty confident they will substantially improve their offer.

 

[opusman]

I've mentioned this before but according to the letter I received, the points balance is doubled based on your balance as at April 15th.

However the actual crediting of the additional points may take up to one month more (June 15th).

 

[amaroo]

I've mentioned this before but according to the letter I received, the points balance is doubled based on your balance as at April 15th.

However the actual crediting of the additional points may take up to one month more (June 15th).

Correct.

 

[hossein_au]

Done correctly RP will generate 1KF, QF, CX, etc, etc, etc for 0.0085c/point

I presume this is after claiming business expenses, etc? My back-of-envelop calculation (above) was before any expenses (or even GST) claim. If I am wrong, I would love to hear how you've gone from 2.4%+GST to less than 1 cent per point (even with Explorer, 2.4%+GST results in over 1.3 cents per point).

 

[Www]

I have the explorer. Based on the info everyone has posted I am assuming that I will not be eligible for any increase in points balance. So thinking I might as well clear out my Amex points at a better value before April. With our known trips in the next 3 years being within Australia and NZ and unlikely anywhere else, i am reluctant to speculatively transfer to Krisflyer, Asia Miles, etc. I may be forced to transfer to virgin in the current transfer bonus (though my velocity point balance is already higher than I’d like so this is less than ideal). Have used Etihad Guest miles to book virgin flights a lot recently and got some great value, but concerned about transferring too much to sit in Etihad Guest as I am not sure how safe the Etihad Guest program is or how safe virgin is as a long term partner in the Etihad Guest program. I would easily spend the miles over next 3 years getting good value if I knew they would be safe there. Any thoughts in having a large Etihad Guest balance?

 

[calgarychris]

Any thoughts in having a large Etihad Guest balance?

Given all the cuts they're making and the fact they're bleeding money, I'd be pretty concerned about having a large balance in Guest...

 

[Www]

Given all the cuts they're making and the fact they're bleeding money, I'd be pretty concerned about having a large balance in Guest...

Thanks for the reply, that was my thoughts. Larger velocity value it is then I’d say. Either that or wait out on the hope that Amex will increase the balance of all cards. Neither great options.

 

[SOPOOR]

Platinum Edge holder with an Explorer linking to Ascent.

I called Amex earlier in the week regarding the changes. I was told by the offshore Rep that my points would be protected (i.e. doubled) upon the changeover in April.

Got my letter on Friday, with no reference to my points doubling.

Called Amex today, and a different offshore Rep informed me that I wasn't eligible to have my points doubled in April. I asked her to listen to the original call (after I stated I would go to FOS), and she called me back to tell me they'd do a manual intervention (to double) in April. They're going to put it in writing, and email it to me.

What a joke Amex has become.

Given how they seem to forget to call.back 90% of the times or cant find any reference to calls even with a reference number, im surprised they dont lose recorded calls

 

[ajd]

Given how they seem to forget to call.back 90% of the times or cant find any reference to calls even with a reference number, im surprised they dont lose recorded calls

Going a bit OT: Is it confirmed that Amex actually records calls as a matter of course? I've had previous dealings with government agencies who have confirmed to me that even though they read off the usual privacy statement about call recording it's not actually their policy to record calls unless they have a specific reason.

 

[Blackswan]

Going a bit OT: Is it confirmed that Amex actually records calls as a matter of course? I've had previous dealings with government agencies who have confirmed to me that even though they read off the usual privacy statement about call recording it's not actually their policy to record calls unless they have a specific reason.

I got told all calls are recorded, even whilst you're on hold.

 

[SOPOOR]

so what do yo uguys reckon is the best way to make to give feedback of these changes (not the doubling points or not) and to amke sure its actually heard and not dissappear into the internet black hole

 

[sjk]

so what do yo uguys reckon is the best way to make to give feedback of these changes (not the doubling points or not) and to amke sure its actually heard and not dissappear into the internet black hole

I would suggest using capital letters, punctuation, and coherent language for starters.

 

[daft009]

I'm going to sit patiently till I get my letter for the platinum edge.

Depending on the contents I will decide accordingly

 

[psi999]

I have the explorer. Based on the info everyone has posted I am assuming that I will not be eligible for any increase in points balance. So thinking I might as well clear out my Amex points at a better value before April. With our known trips in the next 3 years being within Australia and NZ and unlikely anywhere else, i am reluctant to speculatively transfer to Krisflyer, Asia Miles, etc. I may be forced to transfer to virgin in the current transfer bonus (though my velocity point balance is already higher than I’d like so this is less than ideal). Have used Etihad Guest miles to book virgin flights a lot recently and got some great value, but concerned about transferring too much to sit in Etihad Guest as I am not sure how safe the Etihad Guest program is or how safe virgin is as a long term partner in the Etihad Guest program. I would easily spend the miles over next 3 years getting good value if I knew they would be safe there. Any thoughts in having a large Etihad Guest balance?

What about transferring to Marriott? 24 month expiry which can be extended by earning points (transfer) from what i've read. Recent devaluation so probably fairly stable value wise for a while.

Ive never used Marriott/SPG but with no travel on the horizon, already multiple million in velocity i'm looking for a home for close to a million MR. Super pleb edge/explorer so no doubt have not made the cut for balance double. Anyone else looking this way?

 

[Oubline]

What about transferring to Marriott? 24 month expiry which can be extended by earning points (transfer) from what i've read. Recent devaluation so probably fairly stable value wise for a while.

Ive never used Marriott/SPG but with no travel on the horizon, already multiple million in velocity i'm looking for a home for close to a million MR. Super pleb edge/explorer so no doubt have not made the cut for balance double. Anyone else looking this way?

The only issue with that is the conversion rate is quite poor to Marriott (or at least it was devalued so much recently so the memories of the much better conversion rate are still fresh).

 

[Bell21]

I presume this is after claiming business expenses, etc? My back-of-envelop calculation (above) was before any expenses (or even GST) claim. If I am wrong, I would love to hear how you've gone from 2.4%+GST to less than 1 cent per point (even with Explorer, 2.4%+GST results in over 1.3 cents per point).

Yes, if it's a bus expense, you claim back the gst and take off 25 per cent from 1.2 cents (since you're getting 2 points / $), which is 0.9 cents / point

 

[opusman]

Got letter for the Reserve card now. No mention of points doubling in that even though the letter for the Platinum Charge card did.

 

[Chicken]

Got letter for the Reserve card now. No mention of points doubling in that

Got the same last Friday.