cancel
Showing results for 
Search instead for 
Did you mean: 

Rumor: Amex to compete with CSR

Established Contributor

Re: Rumor: Amex to compete with CSR


Irish80 wrote:

ibmrad7 wrote:

Irish80 wrote:

 

Exactly.  Ridiculous to even speculate about that kind of program.  


  True. They would rather shut the program down rather than running it for loss.


Yup and while I agree that the Platinum needs some improvement to increase the use of the card (3X dining/travel) we can't forget that Amex does provide a lot of bonuses with the card such as status with Starwood, National, etc that neither Chase or Citi provides with their 'elite' travel cards.  Amex's biggest problem is those that get the Platinum for the sign up bonus and standard benefits and then just sock drawer the card because there is no great incentive to use it further.   I think this will be what they address if the rumors are true.


You nailed it. If Amex adds 3X for dinning and travel than it'll be my goto card.

Message 61 of 115
New Contributor

Re: Rumor: Amex to compete with CSR

What I think people are forgetting is if you have multiple products the value of the Membership Reward point itself increases and nobody knows if AMEX wants to absorb this cost, but they most certainly are aware.  Since AMEX pools points across all eligible cards, for members with multiple products (such as me) increasing to like 3X etc will increase AMEX's cost indirectly.  

 

For example, if you have the Business Platinum, automatically your points are worth 1.43 per point if redeemed for airfare on AMEXTRAVEL.com.  This is regardless of what rate you got the point.  So if it's 3 points per dollar, the return is now 4.29%.

 

For people that have Schwab AMEX it's 1.25% in cash; so for my example the adjusted rate is 3.75% back.

 

These two examples are actual cash costs to AMEX and not negotiated prices...so before people get excited about a revolutionary return product, remember AMEX already has this, if you pool cards together.

Message 62 of 115
Moderator

Re: Rumor: Amex to compete with CSR


navyitaly wrote:

What I think people are forgetting is if you have multiple products the value of the Membership Reward point itself increases and nobody knows if AMEX wants to absorb this cost, but they most certainly are aware.  Since AMEX pools points across all eligible cards, for members with multiple products (such as me) increasing to like 3X etc will increase AMEX's cost indirectly.  

 

For example, if you have the Business Platinum, automatically your points are worth 1.43 per point if redeemed for airfare on AMEXTRAVEL.com.  This is regardless of what rate you got the point.  So if it's 3 points per dollar, the return is now 4.29%.

 

For people that have Schwab AMEX it's 1.25% in cash; so for my example the adjusted rate is 3.75% back.

 

These two examples are actual cash costs to AMEX and not negotiated prices...so before people get excited about a revolutionary return product, remember AMEX already has this, if you pool cards together.


What you posted is true for both Chase and Citi who offer 3X for dining and travel.  Amex does not 'already have this' so I'm not sure what you are trying to say.  Everyone knows that 1 point is generally worth more than 1 cent.

Message 63 of 115
Valued Contributor

Re: Rumor: Amex to compete with CSR


Irish80 wrote:

navyitaly wrote:

What I think people are forgetting is if you have multiple products the value of the Membership Reward point itself increases and nobody knows if AMEX wants to absorb this cost, but they most certainly are aware.  Since AMEX pools points across all eligible cards, for members with multiple products (such as me) increasing to like 3X etc will increase AMEX's cost indirectly.  

 

For example, if you have the Business Platinum, automatically your points are worth 1.43 per point if redeemed for airfare on AMEXTRAVEL.com.  This is regardless of what rate you got the point.  So if it's 3 points per dollar, the return is now 4.29%.

 

For people that have Schwab AMEX it's 1.25% in cash; so for my example the adjusted rate is 3.75% back.

 

These two examples are actual cash costs to AMEX and not negotiated prices...so before people get excited about a revolutionary return product, remember AMEX already has this, if you pool cards together.


What you posted is true for both Chase and Citi who offer 3X for dining and travel.  Amex does not 'already have this' so I'm not sure what you are trying to say.  Everyone knows that 1 point is generally worth more than 1 cent.


I have the Schwab Platinum card, and I regard the 1.25 cpp feature as more of a last-resort redemption option than a feature I hope to ever use.

Perks, purchase protection, and sketchy merchants: Schwab Platinum.....Price rewind and extended warranties: Costco.....Travel insurance: Prestige.....Renewal nights: IHG, Hyatt.....Rewards/Offers: Discover, Freedom, ED, BCE.....Taxes/Misc: SPG...Questioning the value of: CSP, Arrival

760ish FICOs...Rebucketing hurts!
Total CL: Enough
Message 64 of 115
Valued Contributor

Re: Rumor: Amex to compete with CSR

I could see something in the neighborhood of 3X on dining and airfare and the $200 credit being bumped up to $300.
American Express PRG__American Express BCE__Chase Amazon__Chase United TravelBank___American Express Everyday

Message 65 of 115
Frequent Contributor

Re: Rumor: Amex to compete with CSR

Wow, that's a nice looking card! Smiley Surprised
I like have AMX cards in my wallet. They always look so pretty sitting there. HAHA

Message 66 of 115
New Contributor

Re: Rumor: Amex to compete with CSR

AMEX does have this indirectly...kind of...if you have the right cards to make it work...

 

Everyday Preferred with AMEX Travel purchase is 2.5 points per dollar.

Airline Travel with PRG is 3 points per dollar.

Restaurant with PRG is 2 points per dollar...

 

Unless you you are spending a ton, it won't matter...the small difference that is.

 

Message 67 of 115
Super Contributor

Re: Rumor: Amex to compete with CSR


navyitaly wrote:

AMEX does have this indirectly...kind of...if you have the right cards to make it work...

 

Everyday Preferred with AMEX Travel purchase is 2.5 points per dollar.

Airline Travel with PRG is 3 points per dollar.

Restaurant with PRG is 2 points per dollar...

 

Unless you you are spending a ton, it won't matter...the small difference that is.

 


Right, but you are adding additional annual fees.   The point about the CSR (or the Prestige) is that for the $450 AF you get all the category bonuses in one card (and additional ones at no cost if you also want the Freedom).  Yes, you can have the Amex Everyday, but at 1.2 MR outside groceries, that's not a game changing addition

Message 68 of 115
Valued Contributor

Re: Rumor: Amex to compete with CSR

I'd prefer not to have that many cards and annual fees.
American Express PRG__American Express BCE__Chase Amazon__Chase United TravelBank___American Express Everyday

Message 69 of 115
Valued Contributor

Re: Rumor: Amex to compete with CSR


12velectronics wrote:
I could see something in the neighborhood of 3X on dining and airfare and the $200 credit being bumped up to $300.

IMO, 3x MRs on airfare isn't of much use unless they also add some travel delay insurance.

Perks, purchase protection, and sketchy merchants: Schwab Platinum.....Price rewind and extended warranties: Costco.....Travel insurance: Prestige.....Renewal nights: IHG, Hyatt.....Rewards/Offers: Discover, Freedom, ED, BCE.....Taxes/Misc: SPG...Questioning the value of: CSP, Arrival

760ish FICOs...Rebucketing hurts!
Total CL: Enough
Message 70 of 115