@Walt_K wrote:
@wollepopolle wrote:
I understand that Amex's rewards system is "delayed" by one month. So, on my February statement I get the cash back for the January billing period. But still, making that cash back from a month ago not available (after all, last month's payment has been made by that point). is inferior in my view.
If Amex cannot update the rewards balance quickly enough because the system is too slow, then they need to change that.
If Amex doesn't want to update the rewards balance because they want to get their money first before they release the cash back, that right there tells you a lot about how they "value" their customers. I've had their product for eight years, having made about 90 pay-in-full payments. It's time for them to "trust" me with my small-time cash back.
Just to play devil's advocate, l view it as a prudent business practice. If Amex gave the rewards to customers before they paid, if they ever get stiffed on a bill, they lose more money. Not just the credit extended, but the rewards as well. By not doing that, they are engaging in a more conservative practice, which means they are protecting their investment, more likely to continue to make money, and more likely to continue to offer great rewards. I can get behind that.
I suppose the question is whether the money they might lose by paying out rewards before someone pays their bill if that person then defaults, is greater or less than the money they lose by potentially driving away customers like yourself that see it as not valuing the relationship.
+1
I would just like to add product returns to the above. For example, when customer purchase items with their CC's and happen to return it, after their billing cycle has closed, CCC's that offer rewards after the statement cuts would have lost money on that transaction. I think that Amex current rewards practice will only benefit them in the long run.
