topic Re: Why is AMEX so cheap? in Credit Cards

Why is AMEX so cheap?

Anonymous — Thu, 08 Oct 2015 04:07:37 GMT

Citi Double Cash gives you 2% on all purchases.

Why can't AMEX come out with a card like this given their revenue per swipe is much higher?

Note: I know the Fid Amex exists. I am referring to bank issued credit cards only, like BCE or ED.

Re: Why is AMEX so cheap?

Anonymous — Thu, 08 Oct 2015 04:32:38 GMT

@Anonymous wrote:
Citi Double Cash gives you 2% on all purchases.

Why can't AMEX come out with a card like this given their revenue per swipe is much higher?

Note: I know the Fid Amex exists. I am referring to bank issued credit cards only, like BCE or ED.

Well, I think there is a reasonable argument that 1.2MR per $ (ED) is worth more than 2% And the 6% on the BCP (or more on EDP) is higher than any of the competitors. So they are only cheap is you pick and chose what you are comparing!

Re: Why is AMEX so cheap?

Anonymous — Thu, 08 Oct 2015 05:54:33 GMT

@Anonymous wrote:
Citi Double Cash gives you 2% on all purchases.

Why can't AMEX come out with a card like this given their revenue per swipe is much higher?

Note: I know the Fid Amex exists. I am referring to bank issued credit cards only, like BCE or ED.

good question. always wondered why there arent more 2%+ cards that are WEMC as they charge more in swipe fees.

Re: Why is AMEX so cheap?

Imperfectfuture — Thu, 08 Oct 2015 11:37:25 GMT

If you use the BCE right, you average 2%. The BCP can come out as a 3%. This is for cash back cards, as ltl already listed the bennies of MR.

Re: Why is AMEX so cheap?

takeshi74 — Thu, 08 Oct 2015 13:22:06 GMT

For any creditor you'd have to ask the creditor. Obviously not all offer the same rewards as each other and the reasons can and do vary.

Why do you think AmEx needs to offer a 2% on all spend card? If you need/want 2% then select a suitable product.

Why doesn't Citi offer the 3x CLI? Why didn't Citi offer backdating?

@Anonymous wrote:
Why can't AMEX come out with a card like this given their revenue per swipe is much higher?

Who says they can't? "Can't" and "does not see X as commercially viable for them" are two entirely different things.

@Anonymous wrote:
Citi Double Cash gives you 2% on all purchases.

It's close to 2% on purchases but it's really 1% on purchases and 1% on payments. Depending on redemption that can have an (small) impact on the overall %.

Re: Why is AMEX so cheap?

kdm31091 — Thu, 08 Oct 2015 13:34:56 GMT

Amex has plenty of options that come out more than 2 percent if redeemed for travel. They are not "cheap". At their core, they mostly serve a different audience although of course they have a few cash back cards.

Re: Why is AMEX so cheap?

Open123 — Thu, 08 Oct 2015 13:47:03 GMT

When it comes to cash-back, I've always found Amex pretty underwhelming.

Their only viable cash offerings I find value in would be the BCP and OBC. The former is easily maximized with little effort, while the latter requires some level of creativity. However, if used properly, both are excellent cashback cards. Where Amex excels is travel rewards. When used properly, some of their cards are truly "best in class" when redeemed prudently. In my view, for a commensurate amount of spend, there is no better return on spend card than either the EDP or SPG, both of which surpass 2% cashback, but likely equal to (less than, for most) 3% cashback.

It should go without saying that nothing trumps 5% cashback, hence the tremendous value of the Chase Ink/Freedom (best value, bar none) 5X combination

Re: Why is AMEX so cheap?

thelethargicage — Thu, 08 Oct 2015 14:10:18 GMT

@Anonymous wrote:
Citi Double Cash gives you 2% on all purchases.

Why can't AMEX come out with a card like this given their revenue per swipe is much higher?

Note: I know the Fid Amex exists. I am referring to bank issued credit cards only, like BCE or ED.

Hopefully the new Schwab Amex will be along the lines of the old Schwab Visa instead of being a MR card ()

Re: Why is AMEX so cheap?

Anonymous — Thu, 08 Oct 2015 14:48:37 GMT

Amex offers are 10 - 100% cashback, but only one a month is interesting for me on average

Re: Why is AMEX so cheap?

yfan — Thu, 08 Oct 2015 14:59:27 GMT

In addition to what others have mentioned - that it depends on how you value MR points - I also feel that Amex cares more about its cards' benefits structure than straight rewards (not that it doesn't care about rewards, mind you). Every American Express issued card, including the no-AF ones, provide comprehensive, first-resort CDW coverage for a small fee per rental. There's also Shoprunner benefits, but that really depends on your shopping habit.

The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."

Re: Why is AMEX so cheap?

Open123 — Thu, 08 Oct 2015 15:06:09 GMT

@yfan wrote:
The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."

Right, if we, say, had a card that offerd 5X on gas/dining/groceries/3X Travel/2X everything else with no caps, no FTF, with no redemption threshold, low APR and no annual fee, can their systems even handle the amount of apps submitted in the next 5 minutes?

Re: Why is AMEX so cheap?

Anonymous — Thu, 08 Oct 2015 16:29:53 GMT

@Open123 wrote:
@yfan wrote:
The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."
Right, if we, say, had a card that offerd 5X on gas/dining/groceries/3X Travel/2X everything else with no caps, no FTF, with no redemption threshold, low APR and no annual fee, can their systems even handle the amount of apps submitted in the next 5 minutes?

Please PM me the app link, I won't share!

Re: Why is AMEX so cheap?

Open123 — Thu, 08 Oct 2015 16:33:33 GMT

@Anonymous wrote:
@Open123 wrote:
@yfan wrote:
The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."
Right, if we, say, had a card that offerd 5X on gas/dining/groceries/3X Travel/2X everything else with no caps, no FTF, with no redemption threshold, low APR and no annual fee, can their systems even handle the amount of apps submitted in the next 5 minutes?

Please PM me the app link, I won't share!

Sent! By the way, they're MS & BK friendly.

Re: Why is AMEX so cheap?

sandsanta — Thu, 08 Oct 2015 16:34:49 GMT

@Anonymous wrote:
Citi Double Cash gives you 2% on all purchases.

Why can't AMEX come out with a card like this given their revenue per swipe is much higher?

Note: I know the Fid Amex exists. I am referring to bank issued credit cards only, like BCE or ED.

Well thats exactly why they wouldn't give more.

Re: Why is AMEX so cheap?

TheConductor — Thu, 08 Oct 2015 19:04:30 GMT

@yfan wrote:
I also feel that Amex cares more about its cards' benefits structure than straight rewards (not that it doesn't care about rewards, mind you).

Above all, this.

Amex is as focused on the services and consumer protections they offer with their cards as they are on the "earned" rewards like cashback or points.

Different service philosophy for a different kind of customer. They're not "cheap", they're just different.

Re: Why is AMEX so cheap?

Anonymous — Fri, 09 Oct 2015 00:25:10 GMT

@Anonymous wrote:
@Open123 wrote:
@yfan wrote:
The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."
Right, if we, say, had a card that offerd 5X on gas/dining/groceries/3X Travel/2X everything else with no caps, no FTF, with no redemption threshold, low APR and no annual fee, can their systems even handle the amount of apps submitted in the next 5 minutes?

Please PM me the app link, I won't share!

Which card is the app link for?

Re: Why is AMEX so cheap?

Anonymous — Fri, 09 Oct 2015 00:27:26 GMT

@Anonymous wrote:
@Anonymous wrote:
@Open123 wrote:
@yfan wrote:
The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."
Right, if we, say, had a card that offerd 5X on gas/dining/groceries/3X Travel/2X everything else with no caps, no FTF, with no redemption threshold, low APR and no annual fee, can their systems even handle the amount of apps submitted in the next 5 minutes?

Please PM me the app link, I won't share!
Which card is the app link for?

The Unicorn.

Re: Why is AMEX so cheap?

Anonymous — Fri, 09 Oct 2015 00:55:59 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Open123 wrote:
@yfan wrote:
The Double Cash is a great card, but keep in mind that currently Citi offers no cards (that is open to new applicants) without an AF that offers a greater than 2%/2x rate on any category. The BCE offers 3% on groceries. Point is, cards don't tend to offer both 2%+ on certain category and a 2% flat rewards. Choosing one or the other doesn't make a lender "cheap."
Right, if we, say, had a card that offerd 5X on gas/dining/groceries/3X Travel/2X everything else with no caps, no FTF, with no redemption threshold, low APR and no annual fee, can their systems even handle the amount of apps submitted in the next 5 minutes?

Please PM me the app link, I won't share!
Which card is the app link for?
The Unicorn.

Who issues that card? I can't find it anywhere!

Re: Why is AMEX so cheap?

Anonymous — Fri, 09 Oct 2015 01:33:03 GMT

Not everyone travels. And some of us would like a simple, uncomplicated, flat % on all spend.

Re: Why is AMEX so cheap?

thelethargicage — Fri, 09 Oct 2015 02:01:19 GMT

@Anonymous wrote:
Not everyone travels. And some of us would like a simple, uncomplicated, flat % on all spend.