Would You Pay An Annual Fee Of $500 ?

[trumpet-205]

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@Ron1 wrote:

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@plasticguy wrote:

CIti Prestige Thank Card Citi Superior rewards, service and travel benefits including an international companion ticket.   Is it really worth it?

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I wouldn't pay $500 AF for Citi Prestige Card because it has less benefits than Amex Platinum. $450 AF Amex Platinum Card has more benefits than Citi.

Ron.

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But for international traveler, Citi Prestige should be better because AMEX is not widely accepted internationally.

[wmarat]

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@anderl wrote:

Hmmmm-so is it wrong to have the Amex Platinum Charge,Delta Reserve Amex, AND Continental Presidential Plus MC-LOL!

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Yes, it is wrong, unless you fly internationally every 2 weeks.

[Open123]

These fee cards are a tremendously good deal if you utilize them for all the services they offer, espeically for a business owner who writes off the fee incurred as an expense.  Cash rewards and bonuses often have a 1099 attached, but all these other rewards (such as airport lounge, free ticket, no foreign transaction fee, hotel upgrades) are tax free.

The reason these cards offer such great benefits for the relatively low cost (Amex Platinum effective cost of 225 if write off as a business expense) is because 90% of the people with these cards never use the benefits.  For instance, the overwhelming majority of Amex cardholders pay the heft 450, but never utilize the full services and benefits the card has to offer, thereby allowing a spillover benefit to the 5% of Platinum cardholders who actually do use and benefit from the services.  In other words, if EVERYONE used the services extensively, Amex would need to reduce the some benefits or raise the fee.

It's a classic transfer of rewards from members who don't use the benefits to the members who do.  If you are the latter, it's the best deal of any card, especially the business one which has even more benefits.

[anderl]

Well.............I usually average 3 flights a month-lounges are GREAT! Sky Club Lounges especially-free wi fi,showers-drinks and snacks,etc.

[daylove]

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@Open123 wrote:

These fee cards are a tremendously good deal if you utilize them for all the services they offer, espeically for a business owner who writes off the fee incurred as an expense.  Cash rewards and bonuses often have a 1099 attached, but all these other rewards (such as airport lounge, free ticket, no foreign transaction fee, hotel upgrades) are tax free.

The reason these cards offer such great benefits for the relatively low cost (Amex Platinum effective cost of 225 if write off as a business expense) is because 90% of the people with these cards never use the benefits.  For instance, the overwhelming majority of Amex cardholders pay the heft 450, but never utilize the full services and benefits the card has to offer, thereby allowing a spillover benefit to the 5% of Platinum cardholders who actually do use and benefit from the services.  In other words, if EVERYONE used the services extensively, Amex would need to reduce the some benefits or raise the fee.

It's a classic transfer of rewards from members who don't use the benefits to the members who do.  If you are the latter, it's the best deal of any card, especially the business one which has even more benefits.

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most heavy spenders I know always get the fee waived. I know I do.

[Open123]

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@daylove wrote:

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@Open123 wrote:

These fee cards are a tremendously good deal if you utilize them for all the services they offer, espeically for a business owner who writes off the fee incurred as an expense.  Cash rewards and bonuses often have a 1099 attached, but all these other rewards (such as airport lounge, free ticket, no foreign transaction fee, hotel upgrades) are tax free.

The reason these cards offer such great benefits for the relatively low cost (Amex Platinum effective cost of 225 if write off as a business expense) is because 90% of the people with these cards never use the benefits.  For instance, the overwhelming majority of Amex cardholders pay the heft 450, but never utilize the full services and benefits the card has to offer, thereby allowing a spillover benefit to the 5% of Platinum cardholders who actually do use and benefit from the services.  In other words, if EVERYONE used the services extensively, Amex would need to reduce the some benefits or raise the fee.

It's a classic transfer of rewards from members who don't use the benefits to the members who do.  If you are the latter, it's the best deal of any card, especially the business one which has even more benefits.

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most heavy spenders I know always get the fee waived. I know I do.

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While it's reassuring to know that privileged members such as yourself have their fees wavied by Amex, this has little bearing with the point I was trying to make. 

Let's use the Platinum card.  If the features and benefits are utilized, the card is worth the fee irrespective of what one spends on the card.  On the other hand, if the added benefits are not used, then the card isn't worth it, even in the case of a privileged cardmember such as yourself.  If the benefits of the Platinum card isn't used, the copious amounts spent to have the fee waived would have earned better benefits in the PR Gold, SPG, or another card which rewards a higher ratio on what you do spend on.  The Platinum card has a 1% rewards structure, which is hardly impressive.

I would argue for a person who spends a huge amount per year but never takes advantage of the Platinum features, he would be better served with another option that could yield 2% return on his spending.