A Noteworthy American Express Card Terms Change
Amex has brought the fun over the years. To be clear, not all the news has been good. But overall, I feel points and travel hobbyists can come out on top higher and more often with Amex than any other bank. Recently, what may first appear to be a minor development could signify the beginning of the end with one certain Amex angle. I’m not surprised at this recent American Express card terms change, and I’m expecting it will spread to other cards in its portfolio.
The Recent American Express Card Terms Change
Last week, DDG wrote about newly-elevated welcome offers and fresh benefits on Delta Amex cards. Delta Gold, Platinum, and Reserve cardholders now receive a second checked bag free on domestic flights. In my opinion, this sounds better than it actually is – for my situation, at least. Anyway, kudos on that, I guess.
But I found the second new benefit’s wording a bit more interesting. Delta SkyMiles Gold and Gold Business Card Members will have access to the $120 annual Rideshare Credit after Card renewal, unlocking up to $10 in monthly statement credits on eligible U.S. rideshare purchases with select providers.
This is the first time – in my recollection, at least – that Amex has used “after card renewal” to limit the use of refreshed card benefits.
Why This Matters
For years of product refreshes, Amex has generously allowed existing cardholders to immediately use updated benefits. Cardholders didn’t need to wait for card renewal to do so, which often came with higher annual fees. Instead, cardholders could obtain substantially more value while benefitting from the current cardmember year’s lower annual fee. This was the case with previous Gold and Platinum minor updates and last year’s full-on refreshes. I vividly recall this with the Hilton card portfolio, as well, among other Amex cards.
But hey, this is just a change on the Delta Gold cards, right? Nothing else is changing right now. What’s the big deal?
Why I Think This Will Continue
From now on, I expect Amex will phase in this “after card renewal” aspect into more of its card refreshes. Other banks already do this, such as Chase with certain Sapphire Reserve benefit changes. Plus, it seems like a logical next step for Amex, one where they can clearly cut costs. Amex can naturally make a case where new benefits tie to an updated annual fee. Let’s pretend Amex instituted “after card renewal” terms into all future card benefit changes. I’m confident that would tick plenty off, but I don’t think such a move should be particularly controversial.
Why It’s Not That Big of a Deal
Such a change would annoy plenty of existing cardholders. But we could mostly point to the erroneous entitlement that has been built up over previous years. Yes, perhaps that’s of Amex’s own making, but it is entitlement nonetheless.
Existing, aggressive Amex cardholders, including this writer, have been able to easily take advantage of myriad evolving card benefits due to the issuer’s generosity. Amex didn’t need to give the new benefits to existing cardholders before a higher annual fee, but the bank did, anyway.
Along the way, it’s easy to grow accustomed to this generosity, to the point where it’s easy to discount it. But I shouldn’t feel entitled to any new benefits not aligned to an updated annual fee. I was happy enough with the card package (welcome offer, benefits, terms, annual fee, etc) when I acquired it, so I shouldn’t be angered I don’t get subsequently-added benefits under the previous annual fee. I don’t think I’m alone here, but I’m also confident some others disagree.
I’m Just Guessing
I have no knowledge of any others changes coming. Rather, I’m just making an educated guess that Amex will institute this “after card renewal” language on future card updates. It seems reasonable enough. I look back and feel like Amex has spoiled me with all the new benefits I received on existing cardmember year (read: lower) annual fees.
And to be clear, I’m not wishing for this to happen. Rather, I’m conservatively setting my expectations and will be pleasantly surprised if or when “after card renewal” terms do not show up with future card refreshes. I’ll be happy if my guess turns out to be wrong.
A Noteworthy American Express Card Terms Change – Conclusion
We get what we pay for. When we choose to apply for credit cards, we sign up for the deal in front of us. We can’t reasonably expect to obtain additional subsequent benefits under the annual fee we previously agreed to. Sure, such instances can come from time to time, but I don’t consider it the new norm. Amex and other card issuers make changes, and it’s up to us to respond as appropriate.
What do you make of this American Express card terms change?
