Credit Cards - Is AMEX recommended for best redemption of points (specifically cashback for points?).

rhabdoviridae on 27/06/2016 - 17:29
Last edited 27/06/2016 - 17:32

Hi,
I have a Bankwest more Platinum Mastercard. It has been great for travelling (no overseas transaction fees) and the added insurance has been good as well.
The points system is 2 points per $ spent. While that sounds good in theory, in order to redemm $1000 in cash you need to have accumulated 340,000 points. The card costs $130 annually and has no extra charges for an additional card holder.
I don't feel that is quite a good deal looking back on it now.

I was wondering what others think of their current credit cards and their points to redemption offers available to them?

I have never considered AMEX, but after reading a few forums and looking at comparisons I am tempted by it. The velocity escape sounds appealing (As i also collect velocity points), but the points are 1:1. I have never had a card that specifically gives points just for travel, as my travel is about 2-3 times a year, of which most of that is domestic travel.

Am i better off switching to an AMEX for points purposes (so switching to let's say a platinum AMEX) and replacing my Mastercard/Visa with a no annual fee card?

Biggest things i am looking for:
1. No foreign transaction fees and travel insurace (so essentially a 'Travel' credit card.
2. A good points system for redeeming points for cash or goods.
3. Ideally no charges for an additional card holder
4. Annual fee ideally less than $150, but could go as high as $200 depending on the benefits received.

Thanks.

Financial

Comments

  • evol on 27/06/2016 - 18:19
    +1

    Amex-issued cards in general have the highest points earn rates. However, with regards to the things you are looking for:

    1. There is no Amex card (Amex issued or Bank issued) that has no foreign transaction fees. The only exception to this is the recently released ANZ Rewards Travel Adventure card duo.
    2. Redeeming points for cash or goods is always the lowest value usage of points regardless of rewards program or card issuer. Having said that, Amex points have the highest value per point out of all reward schemes and you can redeem/convert the points whenever you want.
    3. Varies by product.
    4. The lower annual fee cards have lower earn rates and barely any perks.

    General advice:
    1. Obtain an Amex-issued card for points earn - most valuable points with the widest range of redemption options. Something like the Platinum Edge product is good as you earn bonus on everyday spend (supermarket, petrol). You also get a free return domestic flight every year on Virgin which easily makes up for the annual fee. A referral link which provides you additional sign-up points (mod: referral solicitation removed - use wiki.)
    2. Obtain a MasterCard/Visa for where Amex isn't accepted. This could be a Velocity earning card or a intl transaction fee free card (28Deg, Bankwest Plat, etc.) depending on your usage and goals.

    Hope that helps :)

    • themirror on 06/07/2016 - 19:38

      If cash/goods is the lowest value to spend your points, what's the best way to?

      • Holysmoke on 06/07/2016 - 21:16

        Redeem for free flights or class upgrades

  • twinbag on 27/06/2016 - 19:16
    +2

    Just be aware that a lot of merchants charge a surcharge for amex which may more than offset the additional points you earn.

    • jaybmate on 27/06/2016 - 22:03

      not sure why you were downvoted, its pretty true. even if 2% surcharge.

    • lukebeau on 28/06/2016 - 08:18

      YMMV. Some seem to experience it more than others. I don't come across it personally more than 4-5 times per year, but depends where you pay for things obviously.

      • ilikeradiohead on 29/06/2016 - 00:34

        Really? Caltex charges a 2%+ amex fee, whereas the points accumulated (if put towards a gift card) is like 0.75%.

  • Holysmoke on 27/06/2016 - 19:25

    Amex Plat Edge is the card you are looking for. It has the highest earn rate at Supermarkets and Petrol and a free annual domestic flight.
    Forex transactions are charged for but you can just get a free 28Degrees Mastercard for that.

    Use the Amex referrals for bonus points: https://www.ozbargain.com.au/wiki/american_express_referrals

  • rhabdoviridae on 27/06/2016 - 21:11

    Thanks for the responses!
    Question 1: If I have a velocity escape card do I get charged the $7.7 booking fee with Virgin or does that get waived?
    Question 2: I can't look at what all can be redeemed from American Express in terms of rewards (for the Platinum Edge). Is there a link someone can provide where I can see how many points = what rewards?

    Thanks.

  • bluesky on 27/06/2016 - 22:24

    Since you mentioned the Velocity Escape, I assume you are also considering fee-free Amex offerings too. And yes, there is no fee for additional card holder.

    Among the three free-fee offerings (Velocity Escape, Qantas Discovery, Essential Amex), Velocity Escape gives the lowest reward rate, if your priority is cash-equivalent rewards (see reward percentages here). However, if you are thinking of redeeming Virgin flights, then it is a good option.

    Based on the info you supplied, your Bankwest card's reward rate is 0.588%, so the (Velocity 0.556%) is not far off, with no fee. And the Amex Essential (0.741%) beats it. Besides, you get the cash-back offers (recent discussion here).

    Combine it with the 28 Degrees Mastercard, which seems to be the favoured card by OzB members, for travel, since there is no currency or foreign fees at all. It does not offer free travel insurance, though. However, it is fee-free.

  • rhabdoviridae on 28/06/2016 - 16:39

    Hi all,

    What do you all think of the David Jones Amex card? https://www.americanexpress.com/au/content/reward-cards/davi…
    Seems like a decent deal. The $99 is pretty much refunded with the 30K in points and you get 3 points at petrol stations AND at supermarkets.

    Another question : What classifies as a new member of AMEX? Is there a time limit that you can take where you can become a 'new' AMEX member again?
    Example: Take an AMEX card for 1 year, cancel it at the end of the year, then take a break off AMEX for a year or more. Will that then classify as a new member?

    Thanks.

    • Holysmoke on 28/06/2016 - 16:42
      +1

      New member is generally 12 months without an Amex card.

    • bluesky on 28/06/2016 - 18:00

      It does look pretty good, esp if you are not one who minds the cancel/apply cycle, to get the most from the application bonuses.

  • Multipass on 06/07/2016 - 03:30

    I have the BankWest More card too and I've been keeping an eye out for a better card with no foreign transaction fees and a good points system after they announced changes to the reward system and interest free period.

    ANZ Rewards Adventure Card seems to be a much better deal at the moment. $225 annual fee but you get a free return domestic flight with Virgin + 2 lounges passes every year. I'm not too happy with the $69 supplementary card fee but the points system is a lot better than Bankwest. For eg $50 gift card requires 18,500 points via Bankwest vs 11,115 points on ANZ.

  • rhabdoviridae on 06/07/2016 - 12:08
    +1

    That AMEX offer seems OK. The problem with that AMEX is that 2 points are only available on eligible expenses, whereas bankwest everything gives us 2 points per dollar spent. In the end you would still have to shell out between 6-9K (6K for Amex, 9K for Bankwest More) to get the $50 gift card voucher by either provider.
    $300 for a card (incl. supp card holder) seems quite pricey, but given you get a return flight i suppose that almost negates the cost of the card…
    I'm torn between this and the David Jones AMEX as that has a good 3 points per dollar spent at grocery stores AND petrol stations, and the fact that the points will waive the $99 fee and no supp card fee for the first year. So my logic, spend regular groceries on that card for a year, and you basically get a $500 gift card for free :-)

    Update: Just applied for the David Jones Card. Going to try and get the $500 voucher soon and keep on top of my Bankwest card as i have missed out on points due to their points changes during the last few years. Nothing worse than missing out on points you have worked hard to earn!

    • bluesky on 06/07/2016 - 14:35

      Good Luck. Let us know how you find this card, sometime down the track. Cheers.

  • rhabdoviridae on 28/08/2016 - 15:55
    +1

    Update: 2 months in and the card is decent. Racked up close to 3K in points in addition to the 30K in points they give as a sign up bonus. Considering that has been used only on supermarkets and fuel, it's not too bad. A lot of the deals that folks have posted for AMEX offers have also appeared, so good from that aspect as well.
    Worth mentioning that woolworths gave $15 off for $30 spend as an intro offer, and david jones gave $20 credit for $40 online spend as an intro offer as well.
    Still planning on cancelling it mid way through next year, with the hope that i'll be getting about $500 in a gift card.

    • bluesky on 30/08/2016 - 15:54

      Good to hear it is worthwhile and thanks for your feedback.

    • bargin424 on 13/09/2016 - 15:45

      Which point system will you recommend and why? DJ vs Qantas

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