topic AmEx BCP membership fee? in Credit Cards

AmEx BCP membership fee?

itsxluigi — Fri, 19 Jul 2019 18:51:41 GMT

I just got hit today with a "renewal membership fee", but the weird part is it's only $68.71. Is this my annual fee? How come it's not the full $95? Sorry if this is a stupid question. Just converted from the BCE about a month and a half ago and this is my first AF card, so not really sure how it works.

Re: AmEx BCP membership fee?

calyx — Fri, 19 Jul 2019 18:54:29 GMT

@itsxluigi wrote:
I just got hit today with a "renewal membership fee", but the weird part is it's only $68.71. Is this my annual fee? How come it's not the full $95? Sorry if this is a stupid question. Just converted from the BCE about a month and a half ago and this is my first AF card, so not really sure how it works.

It sounds like they pro-rated your AF since it was an upgrade.

Re: AmEx BCP membership fee?

Anonymous — Fri, 19 Jul 2019 19:13:13 GMT

You only pay a partial year when you upgrade. It could be $20 or $75... depends on when your anniversary is. It's never the same amount though when upgrading. I've done it a couple of times already and each time it's different based on when you accept the upgrade. It's great though since it doesn't fall under the lifetime limit of bonuses with Amex. You can downgrade when the anniversary comes up and then collect it again when an offer is worthwhile comes up again.

Re: AmEx BCP membership fee?

wasCB14 — Fri, 19 Jul 2019 20:00:04 GMT

@Anonymous wrote:
You only pay a partial year when you upgrade. It could be $20 or $75... depends on when your anniversary is. It's never the same amount though when upgrading. I've done it a couple of times already and each time it's different based on when you accept the upgrade. It's great though since it doesn't fall under the lifetime limit of bonuses with Amex. You can downgrade when the anniversary comes up and then collect it again when an offer is worthwhile comes up again.

So with my BCE opening date of 8/2014, all else equal, it's better to accept a future upgrade offer in May or June than October or November?

That is, if I'm going to downgrade every other August or September (following a full year plus a few months with BCP), a May or June upgrade date means I'll have paid a smaller fraction of the partial year's AF?

Re: AmEx BCP membership fee?

Anonymous — Fri, 19 Jul 2019 20:12:59 GMT

My date is August as well. I tend to upgrade in Dec and that results in a $50-$60 fee with the intent of collecting the bonus and riding it out until the renewal comes up.

When you downgrade after the FEE hits it will also be prorated... last time the $95 fee hit and the refund on it was $87.. so, $8 for a month.

It really doesn't take that much grocery spend to cancel out the AF but, it's more worthwhile when there's an offset with the bonus attached and then the spend is just a perk. Keeping it w/o the bonus just isn't quite worth it to make up for the AF before it's profitable means focusing additional spend on it.

6% + $95 AF

$3000/yr * 6% = $180 - $95 = $85 in your pocket

3% / no AF

$3000/yr * 3% = $90 in your pocket

Now, if you're hitting the actual limit of $6000/yr then it's a bit different calculation that makes the AF more wortwhile.

$265 w/ AF and $180 w/o AF

Re: AmEx BCP membership fee?

wasCB14 — Fri, 19 Jul 2019 20:24:55 GMT

So between the time you upgrade and the time you downgrade again, you only pay about $70 in net annual fees for about 9 months?

...as opposed to about $165 for 21 months?

With Costco and specialty stores, only maybe 20% of my grocery spend codes as "supermarket" so BCP doesn't get much ongoing spend.

Re: AmEx BCP membership fee?

Anonymous — Fri, 19 Jul 2019 20:31:39 GMT

@wasCB14 wrote:
So between the time you upgrade and the time you downgrade again, you only pay about $70 in net annual fees for about 9 months?

...as opposed to about $165 for 21 months?

With Costco and specialty stores, only maybe 20% of my grocery spend codes as "supermarket" so BCP doesn't get much ongoing spend.

That sounds about right....

so, taking into account $250 - $70 is $180 in profit + the spend during that time at 6% makes up for the $70 in AF.

For Warehouse places I use BOA for 2% or DC... there's only 1 card that makes 3% but it's a PITA to get one unless you live in their geo-footprint for approval.

Now, you could use BCP for the other categories for...

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on transit (e.g., taxis/rideshare, parking, tolls, trains, buses and more). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.‡

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Re: AmEx BCP membership fee?

Anonymous — Sat, 20 Jul 2019 00:48:12 GMT

Please tell me more about the downgrade process and when it can be done without adverse action.

Re: AmEx BCP membership fee?

Anonymous — Sat, 20 Jul 2019 03:15:06 GMT

@Anonymous wrote:
Please tell me more about the downgrade process and when it can be done without adverse action.

I usually just hop on chat and ask for a downgrade and they of course try to sell you on keeping the AF and then they downgrade it. Usually see the AF refund appear within 1-2 statements. Being cautious around here I normally wait until the AF posts.

On Gold though I cancelled it out before the AF hit and didn't have to deal w/ the crediting of the AF.

Re: AmEx BCP membership fee?

Felony_Phil — Sat, 20 Jul 2019 20:01:31 GMT

I spend enough on gas and groceries for it to cancel out the AF. I just upgraded after holding out for the $250 on $1000 spend offer. In all honesty, I only upgraded due to the new card design and it is magnificent in person. Apparently I'll only see about $50 for the AF because this account has its Anniversary in Jan.

Re: AmEx BCP membership fee?

Anonymous — Sat, 20 Jul 2019 22:44:02 GMT

So you’re saying you get the sub and then downgrade and get the AF back? Because I’m having second thoughts because if I usually get groceries 5% already so I’m only getting one more percent and if I have 5% card for gas, I don’t know if it makes sense but I did like the $250 sub.. I figured you had to wait at least a year and pay the annual fee once but I don’t have to?

Re: AmEx BCP membership fee?

Anonymous — Sat, 20 Jul 2019 22:47:20 GMT

@Anonymous wrote:
So you’re saying you get the sub and then downgrade and get the AF back? Because I’m having second thoughts because if I usually get groceries 5% already so I’m only getting one more percent and if I have 5% card for gas, I don’t know if it makes sense but I did like the $250 sub.. I figured you had to wait at least a year and pay the annual fee once but I don’t have to?

You only have to pay the first annual fee when you get the card, when the second AF posts you just call and downgrade and they refund it.

Re: AmEx BCP membership fee?

Anonymous — Sun, 21 Jul 2019 01:01:37 GMT

@Anonymous wrote:
So you’re saying you get the sub and then downgrade and get the AF back? Because I’m having second thoughts because if I usually get groceries 5% already so I’m only getting one more percent and if I have 5% card for gas, I don’t know if it makes sense but I did like the $250 sub.. I figured you had to wait at least a year and pay the annual fee once but I don’t have to?

When you upgrade and spend $1K you get $250 back and the partial AF charged for the remainder of your year up to the month in which you opened the account.

When the AF comes up in say 6 months or whatever you timeline is then you just downgrade again to the BCE.

Re: AmEx BCP membership fee?

Anonymous — Sun, 21 Jul 2019 02:03:24 GMT

Upgraded 2 months before the anniversary. Lol. So I pay a two month prorated fee and then cancel? Easy $250!

Re: AmEx BCP membership fee?

Anonymous — Sun, 21 Jul 2019 02:09:00 GMT

And there’s no issue if I want to keep it a year and then downgrade before the next annual fee either? Downgrade at anytime?

Re: AmEx BCP membership fee?

Anonymous — Sun, 21 Jul 2019 02:10:07 GMT

@Anonymous wrote:
And there’s no issue if I want to keep it a year and then downgrade before the next annual fee either? Downgrade at anytime?

Keep it until the next AF posts. Better to be safe than risk incurring the wrath of AMEX.

Re: AmEx BCP membership fee?

Anonymous — Sun, 21 Jul 2019 02:23:32 GMT

That’s what I was thinking. I don’t really wanna look like I was churning. It sounded good and they talked me into it, but if I can get 5% for gas elsewhere and 5% for groceries I’m losing more to gain 1% on groceries. Annual fee is not worth 1% more in groceries. I don’t buy that many groceries.

Besides I thought the blue cash everyday looked cooler.