Why is AMEX so cheap?

[Anonymous]

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. 

[Anonymous]

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@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. 

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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!

[Anonymous]

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@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. 

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

[Imperfectfuture]

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.

[takeshi74]

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?

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@Anonymous wrote:

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

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

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@Anonymous wrote:

Citi Double Cash gives you 2% on all purchases.

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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 %.

[kdm31091]

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.

[Open123]

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

[thelethargicage]

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@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. 

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

[Anonymous]

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

[yfan]

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."