New American Express Cashback Credit Card

kerfuffle on 21/04/2021 - 06:46
Last edited 21/04/2021 - 08:22

Was browsing the Amex website yesterday, and came across the Cashback credit card.

The standard rate of cashback is 1% for every dollar you spend (0.5%/$1 for government spending), with a $10 monthly fee. You also get a monthly Binge Basic subscription that's apparently worth $10 and Smartphone Screen Insurance. There's a bonus cashback rate of 5%, but only for the first three months and capped at $200 cashback (edit: only for new Card Members, just like how you have to wait 18 months before you can sign up again and get bonus points). There's also a Shop Small offer where you get 1.5% bonus cashback, but also capped at $200.

Would you sign up for this card? Or stick to cards like the no annual fee Essential card and other point-earning cards?

Financial American Express Credit Card

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American Express

Comments

  • avoidfullprice on 21/04/2021 - 07:59
    +1

    Well I won't be eligible for the 5% cash back because of my existing card, but program seems to give higher rewards than the no annual fee version. Plus could stack with WW GC for further cashback. I'm tempted.

    • kerfuffle on 21/04/2021 - 08:05

      Of course they would include the 18 month waiting period clause … I didn't notice that. Thanks for pointing it out!

  • tomclancy on 21/04/2021 - 10:08
    +2

    I like the direction these cashback cards are taking. More direct method of reward. Saves the pfaffing with calculating/converting points to gift cards in the best value.

    But 1% cashback is not enough to make me waste my 18 month waiting time. Especially with $120 annual fee and AmEx surcharges. For me I'll stick with HSBC for tap & go < $100 (2% cashback; no fees) and for larger or online purchases any competitor card that earns 1QFF/$ which I figure is 1%. That way I can churn to my hearts content.

    Churning is where the big rewards are. Holding a card like this long term is what AmEx want us to do, to keep us away from the big fish.

    • capslock janitor on 21/04/2021 - 10:40

      have been using HSBC 2% Tapper like above.

      ((sure if you value the Binge Basic, Scr insurance (and some Fitness app sub by Hemsworth), but none for me))

      currently would only see myself using it for the boosted first 3 mths.

      How much could we spend to max the $200 cb? EDIT - $4000

  • Autonomic on 21/04/2021 - 10:25
    +1

    Comparing to the fee free card it doesn't really seem worth it beyond the 5% period. Unless you are a Binge subscriber. Maybe someone else can check my maths:

    Amex Essential earns 1.5 points per $ spent. If you spend $1000 you'll get 1500 points which is $7.5 off. Spend $1000/month on this new card and you'll get $10 back, but it's eaten up by the fee. Break even point seems to be $4000/month - after that you'll be earning more on the cashback card than the Essential card.

    • kerfuffle on 21/04/2021 - 10:32

      Essential earning rate is 1.25, not 1.5

      • tomclancy on 21/04/2021 - 10:49
        +3

        So the updated calc is:

        Amex Essential earns 1.25 points per $ spent. If you spend $1000 you'll get 1250 points which is $6.25 off. Spend $1000/month on this new card and you'll get $10 back, but it's eaten up by the fee. Break even point seems to be $2666/month - after that you'll be earning more on the cashback card than the Essential card.

        However, the above calc is a pure AmEx vs AmEx in a long-term holding strategy. Back to my original point of churning instead of long-term holding… the current offer of 75k QFF (arguably worth $750) for $0 upfront fee far exceeds any reward by holding this card long-term. That averages $500/year bonus (for spending $3,000) which in equivalent terms would be from $50,000 spend per year - and that isn't factoring that on the additional $47,000 spend you've earned 1QFF/$ on other cards.

        • Autonomic on 21/04/2021 - 10:58
          +3

          Yep, churning is always going to be better.

          • avoidfullprice on 21/04/2021 - 15:32

            @Autonomic: No doubt churning is better. But credit card approval is not guaranteed based on Ozbargain posts over last 12 months where posters had good credit rating but rejected by banks. Cash back from this credit card is guaranteed (once application is approved).

  • kerfuffle on 21/04/2021 - 10:41

    I assume if you don't use it in a billing period, you don't have to pay the monthly fee?

    • tomclancy on 21/04/2021 - 10:54
      +1

      AmEx page just says "$10 monthly fee". I would assume it's charged every month, irrelevant of usage

      • kerfuffle on 21/04/2021 - 10:55

        Why not just say $120 annual fee then? 🤔

        • tomclancy on 21/04/2021 - 10:56
          +2

          🤷‍♂️

          Normally annual fees are charged upfront. I guess they are moving closer to subscription model style of monthly fee. Maybe better for millenials?

        • b3au on 23/04/2021 - 11:05
          +4

          Blame young people

          American Express has actually said as much, with vice president of consumer lending Austin Huntsdale saying the cashback card was developed after it found 64% of younger Aussies preferred cashback over traditional reward points.
          They also found young people preferred a low monthly fee to an annual one.
          https://www.finder.com.au/american-express-launches-cashback…

  • blueyez on 21/04/2021 - 11:04
    +4

    Monthly fee kills it for me. I don't use streaming services.

    HSBC has a bank account/debit card that offers 2% cash back and no fees.

    Already have another Amex so am not tempted by this one, but it is something different for Amex to offer…

    • kerfuffle on 21/04/2021 - 11:06

      But does HSBC have access to Amex Statement Credits? ;)

      I won't be getting this Amex either.

      • blueyez on 21/04/2021 - 11:10
        +2

        Yeah but I have a family of credit cards haha down to 1 Amex at a time. The shop small offer is tempting but again it's the monthly fee I can't agree with. I'll stick to my bonus points via DJ's Amex!

  • burningrage on 21/04/2021 - 11:24
    +1

    Stick to my Gold Fee-Free-For-Life AMEX and get the random AMEX rewards while sticking to HSBC for the tapper rewards.

    • kerfuffle on 21/04/2021 - 11:26

      How good are free-free for life cards?! I have a DJs Amex with the same offer (and this card was my gateway into the world of Amex)!

    • blueyez on 21/04/2021 - 12:00

      Damn, how does one acquire a fee free for life card haha (try saying that fast lol)

      • capslock janitor on 21/04/2021 - 12:06
        -1

        Free-free for life should suffice

        barz

      • kerfuffle on 21/04/2021 - 12:07
        +1

        I think burningrage has this one

        As for myself, I had the DJs Storecard and bought heaps from DJs (rip my staff discount) and they sent a letter saying if I upgraded my Storecard to the DJs Amex, they'd 'waive the annual fee for every year I hold the account' (or something along those lines). I never got the staff DJs Amex (which is free if you work for DJs) as you'd have to pay the annual fee once you resigned.

        • coolsteps on 24/04/2021 - 12:31

          i knew i shouldnt have let amex cancel my store card to approve a new business application now you can no longer apply for a store card so i missed out on the opportunity for a free upgrade offer to the DJs Amex.

          • kerfuffle on 24/04/2021 - 12:36
            +1

            @coolsteps: This was in 2015 and most likely also depended on your spending patterns. My staff discount meant I racked up a lot of purchases at DJs, so they probably saw an opportunity for me to rack up a lot of purchases outside DJs.

            Free tickets to Harry Potter and the Cursed Child thanks to my DJs Amex! 😁

  • Turd on 23/04/2021 - 11:05

    Interesting idea.

    1% off life.

    hmm

  • cwongtech on 25/04/2021 - 11:33

    Amex explorer is 1% cashback as well if you intend to use the 2 points per $1 to offset charges via Use Points for Charges, though you'd get a better return if you tsfx to airline points and fly instead..

    Personally I have no issue with amex annual fees as the travel credit offsets it (during not-covid times)

  • daft009 on 27/04/2021 - 07:09

    Will hang onto my platinum charge card. Points are worth more

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