Category Archives: American Express

Amex and Amazon.com Promo for Solicited Cardholders

American Express

Amex has been sending out targeted emails over the past several days to promote spending at Amazon.com. Depending upon your card and your account, the precise offer terms will vary, but in general the offers that people have been receiving are 1000 points for spending $50 in a single purchase at Amazon.com between March 18 and March 31, 2008.

Examples of some offers that have been reported include:

  • Amex Blue: $10 statement credit or 1750 points
  • HHonors Amex: 1000 points
  • SPG Amex: 1000 Starpoints
  • Platinum card: 1500 points
  • Gold card: 1000 points
  • Green card: 1000 points

Purchases made via PayPal and purchases made at IMDb and ShopBop do not qualify. However, no exclusion seems to be made for gift cards. I spoke to a CSR to specifically ask about this and she agreed that gift cards should be allowed.

Leave a comment

Double Membership Rewards Points on Airfare for Targeted Amex Cardmembers

American Express

This promotion is part of the same American Express “Obviously” campaign mentioned yesterday featuring an extra 2% rebate on airfare. This particular offer targets Membership Rewards-earning cards, with the terms otherwise essentially the same.

Amex cardholders who are eligible for the promo will earn one additional bonus point per dollar spent on airfare online between April 1 and May 31, 2008. Bonus points will be awarded up to $25,000 in charges. For more details and to enroll, see http://www.americanexpress.com/obviouslypoints or call 1-800-794-1308 and enter promo code 110890001. (Via FT).

2 comments

Additional 2% Rebate on Airfare for Solicited Amex Cardmembers

American Express

Targeted Amex cardholders can earn an additional 2% cash back on airfare purchased online from April 1 to May 31, 2008. This rebate is in addition to any that you would normally earn with your card. This extra cash rebate will be awarded on up to $25,000 in qualifying purchases, for a maximum extra rebate of $500. You must enroll by May 31 and some restrictions do apply.

If you are eligible, you can either enroll online or via phone by calling 1-800-794-1308 and using promo code 110890002. (Via FW).

2 comments

Fry’s Electronics Now Accepts American Express

American Express

Tech geeks who favor Amex will appreciate this bit of news. Fry’s Electronics and American Express have just announced an agreement that allows consumers to use their American Express cards at all 34 Fry’s Electronics stores across the country. In fact, Fry’s began accepting Amex in stores since last week.

A perfect way to take advantage of this news is to use your Amex at Fry’s for Amex’s Buyer Assurance Plan, which extends warranties on purchases for up to one additional year.

Leave a comment

Hilton Amex or Starwood Amex? The Choice Just Became Harder

American Express, Reward Cards

Hilton HHonors recently announced that it was allowing award redemption without blackout dates for all of its members. Previously this benefit, which guarantees that any standard room can be reserved with points as long as it is available, was only provided to its Diamond and Gold-level members.

As a consequence, this move makes the Hilton Amex an even stronger competitor with the Starwood Amex for hotel award redemptions. For transfers to airline programs, the SPG card is still far superior to Hilton’s, but there are many arguments to be made in favor of Hilton when it comes to hotel awards.

By lifting its restrictions on blackout dates, Hilton matches one of SPG’s major selling points. And with more than 2,900 Hilton Family hotels worldwide, compared with Starwood’s 860 or so, there are more than three times as many places where your points can be redeemed. The Hilton Amex also offers bonus points on everyday purchases, awarding 5 points for each dollar spent at supermarkets, drugstores, gas stations, and dining establishments, and 3 points everywhere else. In addition, it does not carry an annual fee, while the SPG Amex charges $45 after the first year.

All in all, there are points to be made in each card’s favor and much of it comes down to personal preference. For maximum flexibility, you could carry both cards, which is what I actually plan to do.

2 comments

An Experiment Gone Awry: Comparing Amex Foreign Exchange Fees to Visa and Mastercard

American Express, MasterCard, Visa

Those who have followed the recent credit card foreign transaction fee lawsuit and subsequent settlement are aware of the hidden costs of making a purchase in foreign currency. In the most common case, both the network (ie., Visa, MasterCard, Amex) and the card issuer will tack on a surcharge, usually totalling 1-3%, to every overseas transaction. (For a full table of these fees by issuer, see the FlyerTalk Wiki.)

Amex vs. Visa / Mastercard
I recently decided to perform a mini experiment to explore a little publicized aspect of making purchases in foreign currency–namely, to discover the difference, if any, between the underlying exchange rate used by American Express and that of Visa/Mastercard.

The experiment
In the past, I had heard that Amex used inferior exchange rates, so to test that theory I set up an admittedly imperfect experiment, pitting my Starwood American Express against my Chase Visa.

Last week, I ran a series of charges against each card. On Jan. 28, I charged 25 British pounds on each card, with each charge coming within minutes of one another. I repeated this again on Jan. 30 and Feb. 1. In theory, the Starwood Amex with its 2% forex fee should beat the Chase Visa with its overall 3% forex fee (1% from Visa + 2% from Chase), assuming that their underlying exchange rates were comparable.

The results
Unfortunately this test didn’t yield the information that I was hoping for. For one thing, I found that while Amex processed each transaction on the day that it occurred, Visa took until the next day, meaning that I couldn’t directly compare the exchange rates.

When I tried to calculate the foreign exchange fee using the average daily Interbank rate, as quoted by Oanda.com, I got the following results:

Date Charged Amount Charged Card Date Processed Charge in dollars Interbank rate* Fee
1/28 25 GBP Amex 1/28 $50.71 1.98370 2.3%
1/28 25 GBP Chase 1/29 $51.21 1.98190 3.4%
1/30 25 GBP Amex 1/30 $50.88 1.98640 2.5%
1/30 25 GBP Chase 1/31 $51.24 1.990 3.0%
2/1 25 GBP Amex 2/1 $50.87 1.99830 1.8%
2/1 25 GBP Chase 2/2 $50.73 1.98490 2.2%

Further Research
Since these results weren’t exactly what I was expecting, I did a bit more research and found some information that helps explain why I didn’t get nice, round numbers. American Express describes how it determines its conversion rate in the fine print of your billing statement:

If you incur a Charge in a foreign currency, it will be converted into US dollars on the date it is processed by us or our agents. Unless a particular rate is required by applicable law, we will choose a conversion rate that is acceptable to us for that date. Currently, the conversion rate we use for a Charge in a foreign currency is no greater than (a) the highest official conversion rate published by a government agency, or (b) the highest interbank conversion rate identified by us from customary banking sources, on the conversion date or the prior business day, in each instance is increased by 2%. This conversion rate may differ from rates in effect on the date of your charge.

Visa also explains how it handles foreign currency transactions:

Will the rates shown be the rates charged to my account?

The exact rate you receive depends on when the transaction is posted to the Visa system. The day the charge actually posts may be later than the day on which you made the purchase, depending on how promptly each merchant handles their Visa transactions.

How does Visa calculate its rate?

Every day—except weekends, Memorial Day, Christmas Day and New Year’s Day—Visa calculates the rate for the next day’s transactions. The Visa rate is selected from a range of rates available in wholesale currency markets or the government-mandated rate in effect one day prior to the applicable central processing date. Visa makes this rate available to issuing banks, which may adjust the rate when billing cardholders by applying a foreign transaction fee. The rate Visa makes available to issuing banks may vary from the rate Visa itself receives. Most consumers find that using Visa is a convenient and cost-effective way to make purchases and obtain cash when traveling internationally.

How accurate are the rates?

The rates you are shown are generated with Visa’s internal database for exchange rates and are accurate to two decimal places. However, they are only meant to serve as an indication of the rate you could expect to receive from your issuing bank. As exchange rates change constantly, the rate is only accurate for one day. The exact rate you are charged depends on when the transaction is posted to the Visa system, which may be later than the day on which you paid, depending on how promptly each merchant handles their Visa transactions. Additionally, your final transaction amount may differ depending on whether the merchant converts the currency at the point of sale or if the bank that issues your card assesses a foreign transaction fee.

My conclusion?
Based on this information, I learned that a direct comparison of exchange rates will always be difficult given how much latitude the networks have afforded themselves in determining the conversion rate, especially with regards to the timing of the transaction. From a practical standpoint, it’s more important to look at the other components of foreign currency fees rather than the underlying exchange rate.

Instead, focus on the fees that are documented and well-defined. See the table below for a summary of these fees for major issuers:

Issuer Total Foreign Currency Fee
Amex 2%
Cap One 0%
Citi 3%
Chase 3%
Discover 0%
FIA 3%
HSBC 3%
2 comments

Costco TrueEarnings Amex Personal Card: Now with 3% Rebate on Gas

American Express, Cash Back Cards

According to FW, all Costco Amex cardmembers will begin receiving 3% rebates on gas in February:

Got this from costco magazine Feb 2008.
“Beginning this month, members with the cards begin receiving 3 percent cash back on gas purchases! These include gas purchases from Costco gas stations and stand-alone stations (such as Chevron or Shell stations that are not part of a retail or grocery chain).”

Previously, the Personal version of the card offered only the standard 1% rebate on gas, along with a 3% rebate at restaurants, 2% on travel and 1% on everything else.

Edit 1/31: I just confirmed with Amex Customer Service that the Business version will not be changing and will retain its 5% rebate on gas. Further, the Personal version of the card will begin to receive 3% on gas starting February 11. You can view the actual ad in Costco magazine here.

Leave a comment

Buy 5 Amex Gift Cards, Get $25 Gadget Lover’s Card

American Express

When you purchase 5 American Express gift cards on their website in one order by December 31, 2007, you’re eligible to receive a $25 Amex-branded “Gadget Lover’s Card” that can be used at a number of electronics retailers including Best Buy, Circuit City, Crutchfield, Electrona, f.y.e., Panasonic Direct, SamGoody.com, Staples, Suncoast, The Sharper Image and Tweeter.

Upon receiving your gift card order, you must return a completed rebate form by January 21, 2008. Gift cards can be purchased in denominations ranging from $25 to $500 and are available at www.americanexpress.com/gift.

One comment

Amex MyWishList Holiday 2007

American Express

American Express is back with another edition of “My WishList.” This edition runs from today, November 27, through December 13, 2007. My WishList is a twice-annual program from Amex that offers steep discounts on a limited supply of popular items, as well as limited time Wish Certificates. For a more complete explanation of what the program is and how it works, see this link.

You can see the available offers here.

Leave a comment
1 … 20 21 22 23 24 … 28