Reduced AMEX earn rates from April 2019

[Dr Ralph]

Maybe not, but they need to start providing better value.

You've been doing this long enough to realise that this wont happen, at least not in the short term.


Play the game. The rules are changing all the time. Churning has always been the best strategy. It's the only way to beat the banks. I have always clearly and strongly advocated this and continue to do so. It's my number one strategy for accumulating huge point totals.

 

[BettyB]

Not a good situation. But hardly the end of the world. And definitely been on the cards for sometime. Really AMEX was too generous to sustain itself in my view. This is not a game for people who are afraid of change.

 

[Mr_Orange]

Not a good situation. But hardly the end of the world. And definitely been on the cards for sometime. Really AMEX was too generous to sustain itself in my view. This is not a game for people who are afraid of change.

Not compared to the US Charge card which has a lower annual fee and fee free international transactions, to name just a couple of differences.

 

[Demonoid]

Members with 5million+ MR, what are you guys going to do ? I have no idea what to do. Transfer to KF can last 3 years only
My original plan was 10 years business class!

Jesus wept

 

[Bell21]

Not a good situation. But hardly the end of the world. And definitely been on the cards for sometime. Really AMEX was too generous to sustain itself in my view. This is not a game for people who are afraid of change.

I agree - the changes hit hard, but feel like they were inevitable to some extent from a commercial perspective

 

[Demonoid]

For those hoping / relying on big sign up bonuses, given the up to 50% devaluation in TFs to airlines, the bonuses need to be twice as many as before e.g. 220000 pts for the Amex Explorer to be of similar value to previously, and I really can't see that happening.

My plan is to make as much hay as possible whilst the sun is still shining (April next yr), then will need to explore my options

Not if you are churning a direct earn Velocity Platinum or Qantas AMEX.

 

[carls888]

Oh man! Such sad news. At least we have time to plan a strategy, but still... we will be walking away from the Amex arena for our major spending.

 

[turtlemichael]

Churn baby, churn? Can work for some but not for others.

 

[StevePER]

I haven't studied this in great detail, but I have a feeling that this change will make Amex irrelevant in the Australian market. The Platinum Edge will earn 0.5 airline points per dollar for everyday spend, so many/most people would be better off investing the $200 annual fee in a Visa or Mastercard rather than continuing to hold the Amex. Or is the Platinum Edge hit harder than most?

 

[Bell21]

I think the Plat Edge will still be the card of choice for supermarket and petrol spend - 3 points / $ which I think translates to 1.5 airline points

 

[burmans]

I am maxed out on Platinum Edge but the payment should go thru today. Yes this card is quite generous so I will run it hard until the change hits.

I think some may ensure some serious pre-spending goes on before this deal dies.

 

[theblank]

Is this the beginning of the end for Amex in Australia?

The Amex is still the highest points earning card/s after these changes, so of course its not the end.

 

[StevePER]

I think the Plat Edge will still be the card of choice for supermarket and petrol spend - 3 points / $ which I think translates to 1.5 airline points

It is the highest earner, but I question whether it's enough of a benefit to justify the annual fee.

 

[rock86]

Not compared to the US Charge card which has a lower annual fee and fee free international transactions, to name just a couple of differences.

But has a merchant fee of around 3% thanks to no cap on these fees in the US.

AMEX is taking an approach in Australia to widen its network by lowering their merchant fee, most likely to remain competitive after the RBA limit Visa/Mastercard interchange fees, it was inevitable as some have already pointed out that with this strategy there was going to be a devaluation to their rewards program.

Sure its a tough pill to swallow though.

 

[Supersonic Swinger]

I am not surprised because:

- 20 or 30 years ago, a 2-3% merchant fee covered the cost of providing a "cashless" payment for the merchant, when cash was almost exclusively used for payment (or cheque). But nowadays, the 0.8% RBA cap - out of which banks can still pay for some amount of reward points and other card benefits and presumably still make some profit - shows that the actual cost of providing a cashless payment facility has come down significantly - economies of scale.
- In that context, merchants don't see the value in paying 2-3x for something which is pretty much par for the course
- Merchants who accept Amex are effectively paying for the higher level of rewards Amex provides, and as their expanded merchant pool drives down the merchant fee, they were losing money - and I believe Amex's Australian operations have been under some pressure?

I do wonder whether this will start to have an impact on sign-on bonuses - Amex / banks are effectively paying you in the form of big sign on bonuses, but as their margins compress and the business becomes less lucrative, will they chase it less? Particularly as other payment methods start to arise where the costs of interchange continue to come down...

A Macquarie transaction account or HSBC Everyday Global will now be used for international transactions without the extortionate foreign currency conversion fees. The rewards are not worth the cost and effort of chasing.

As someone I know in marketing who designs reward programs told me, they're designed to reward, but not the consumer who participates in them.

 

[opusman]

The end point of all these changes will presumably be the end of the link between credit cards and frequent flyer programs altogether.

 

[Mr_Orange]

As someone I know in marketing who designs reward programs told me, they're designed to reward, but not the consumer who participates in them.

Ain't that the truth!

 

[Steve Lim]

Been d

You've been doing this long enough to realise that this wont happen, at least not in the short term.


Play the game. The rules are changing all the time. Churning has always been the best strategy. It's the only way to beat the banks. I have always clearly and strongly advocated this and continue to do so. It's my number one strategy for accumulating huge point totals.

Been doing that too but recently got rejected by Westpac due to number of credit checks on my account.. only 2 in the last 12 months after 6 applications prior to that

 

[kooky]

Was thinking a consolation prize might be the 50,000 bonus MR points on Amex Business Explorer at $100k spend? Wouldn't that effectively be 1.25 FF per $ at least for the first $100k?

I looked at the card's page and they still mention it (without an expiry date)

 

[Franky]

Jesus wept

I assume you are referring to John 11.35 in the Bible?