Amex Platinum Changes
Amex just made a few changes to the consumer versions of their Platinum cards. Perhaps you’ve heard. We’ve been through this before. In past iterations, many lazily perceived Platinum changes as roundly negative, lounging in their confirmation bias all the while. However, most of the changes are a yawn, in a good way. From my perspective, none of the recent changes are significantly negative. And, in my view, one clear positive emerges with this iteration of Platinum changes. Let’s take a closer look.
Welcome Offer
DDG shared that the new public welcome offer for the Amex Platinum is 80k Membership Rewards points. That’s down from previously-elevated bonuses in the 150k range. The prior minimum spend to achieve that offer was $6k. Now, a new cardholder must spend $8k in six months to receive the welcome bonus. Bad, huh?
Not really. First, let’s consider the lower 80k welcome offer. Amex routinely varies welcome offers for most all their cards, and I think that will continue with the Platinum. I expect consumers will still be targeted for a variety of elevated offers in the future.
And the minimum spend to reach that welcome offer? It requires $2k more spend now in six months. My first thought there? BFD. Someone willing to pay a Platinum card’s $695 annual fee (subsidized by the first-year welcome offer and benefits) shouldn’t have too much trouble spending an extra $2k over half a year. That’s a whopping ~$334 extra per month. It doesn’t need to be frivolous spending; many can reach that threshold with appropriately timing the payments of their basic living expenses. If that amount of extra spending is unreasonable to you, then the Platinum may not be the right choice. (Perhaps Amex knows this.)
Eligibility Restrictions
As DDG mentioned, it appears multiple signup bonuses will be limited on the different consumer Amex Platinum “flavors” due to these new terms:
You may not be eligible to receive a welcome offer if you have or have had this Card, the Platinum Card® from American Express Exclusively for Charles Schwab, the Platinum Card® from American Express Exclusively for Morgan Stanley or previous versions of these Cards.
Let’s hold the phone here. At this point, I feel about these terms the same way I feel about Amex’s once per lifetime rule. Amex has routinely offered exceptions to the once per lifetime rule with specific “NLL” offers. I’d be surprised if there weren’t similar exceptions to these new terms in the future.
Digital Entertainment Credit
In short, for the $20 monthly digital entertainment credit, The Wall Street Journal is in and Audible’s out. Anyway, I have a huge Audible queue coming out of my virtual ears, and some of you probably do, too. Beyond that, many will consider trading in Audible for WSJ an improvement.
Authorized User Fees
Perhaps the biggest change for many consumers, especially current Platinum cardholders, is the hike in authorized user fees. Long story short, each additional Platinum card is now $195 annually, an increase from $175 for the first three, and $175 for each additional one beyond those three.
This is a substantial increase of $410 for the first three authorized users. But that doesn’t have to be the primary cardholder’s problem. In my view, authorized users should be willing to reimburse the primary cardholder $195 for the considerable benefits that come with the card. If not, no soup for you.
So maybe a Platinum-holding kid doesn’t have a free pass into the Centurion anymore. Or maybe your kid does more chores to keep that AU card. Get creative!
This leads me to the huge improvement for many Platinum cardholders.
Thinning the Herd
Let’s take a step back. Before the AU price hike, for $58.33 each, three Platinum authorized users had access to many benefits, including:
- The American Express Global Lounge Collection
- Marriott Bonvoy Gold Elite Status
- Hilton Honors Gold Status
- Fee Credit for Global Entry/TSA PreCheck
- Fine Hotels & Resorts Program
That’s a ridiculously cheap amount for access to the above benefits. Now, those first three users cost $136.67 more each, and anyone additional costs $20 more. In my view, it’s still inexpensive considering the return.
I have two big takes here. The first is overwhelmingly positive – primary cardholders have not been significantly penalized by this rate hike. It’s on the primary cardholder to manage their authorized users. Again, asking authorized users to cover a $195 for the substantial benefits they receive is reasonable, in my view. Second, this rate hike is long overdue. And, if anything, I think Amex should’ve raised the AU rates higher.
From my optimistic perspective, these fee hikes will thin out the huge AU groups crowding the Centurion, Priority Pass, and Delta SkyClub lounges, among others, plus the hotel elite levels. Primary cardholders and the AU’s at the higher rates will hopefully benefit from the decrease in sardine-level crowds.
Amex Platinum Changes – Conclusion
Full disclosure, I’m a big Amex fan. I’m confident many will disagree with my takes on the recent changes. Regardless, perhaps the biggest losers with these Platinum changes are those who subsidize the benefits for everyone else on their account. If you’re feeling that hit, maybe it’s time for a reckoning with your Platinum authorized users. Many of us in the points and travel hobby know that we often get what we’re willing to pay for. It’s okay for Platinum authorized users to be held to that same expectation.
And with a bit of patience, thoughtful planning, and decisive action at the right times, I’m confident many will be able to avoid the new welcome offer and card eligibility challenges.
What do you think of the recent Amex Platinum changes?
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@ CMorgan
Couldn’t agree more
Amex Membership Rewards is mostly fools gold
Get a sign up bonus and move on its otherwise a waste of time and money
And ditto on the new excessive fee on the Bonvoy card and gone is the 300 dollar Marriott credit
What a sad excuse for a company
Your younger than me.One of the greatest moments of my life was when I cut up all my Platinum American Express cards both consumer and business.
Im no longer gouged by their excessive fees. no more fighting with them in overseas call centers to post my airline fee credits or dining monthly credits
I’d argue visa and master cards have far better benefits and typically far better
Customer service.Decades ago Amex ruled the universe but today for the inexperienced it’s rarely a good card to possess as they are poor at handling of merchant disputes and with some exceptions the poorest value offfeings in the companies history.Granted some folks use a credit card in the Amex portfolio and it will still make sense.However Membership Rewards in my eyes is about the weakest offering out there unless one considers Delta a high valuable redemption partner and then pay to redeem the very points you earned once transferring.If that be the case let the buyer beware and good luck!
I tried to save my family member from their Platinum Amex card explaining the vast negatives however because he is in the military he gets the annual fee
Waived.So I backed down and said good deal keep it! I for one am out!
I do like the Hilton Amex premium card but mostly because Marriott sucked the life out of the former world class SPG Amex (RIP)and I do stay with Hilton brands sometimes.
The earning on everyday spending at the Bonvoy Amex cards are also a big yawn.I now do cash back happily and Chase Saph Reserve and a number of Citibank cards all excellent most things considered compared to the tired overpriced overrated Amex cards.
And I’m probably quite a bit older then you. I find great value in the AX Platinum and the Gold and Green. I also have the Aspire and Bonvoy card. I use my Capital One VX card as well and as long as I’m able to use the various statement credits and benefits that come with these cards and at least break even on a annual cash outlay I’m very happy. Actually I track the AF and cash credits and free nights each year and come out usually a few thousand ahead.
Flying Blue continues to provide some of the best transfer point values out there. And I earn significantly more points via my Amex cards with my current spending habits compared to Citi or Chase (besides I like to transfer Chase to Hyatt). So have fun with your 1.5x on your Freedom Unlimited for everyday spend and no grocery bonus earn for Chase :shrug:
A truly nuanced perspective, Mitch!
Your take and my take are completely different. My wife and I just closed two Plat and two bus gold cards. The Ax Bonvoy card is next along with its $695 AF. To each his own I simply no longer see the value in these cards. I see value for us keeping the HH Aspire, Amazon Prime, BCP and Blue Business. Now using the Cap One Venture X for travel and the Cap One Savor One for dining.
CMorgan,
Bravo for your personal discernment and knowing what’s best for your situation! Thanks for reading.
Yes, you are CORRECT!!! Many will disagree with you!! AMEX is the most restrictive of all the major credit card companies. Since, AMEX has given out the Platinum cards to 18-year-olds and shoeless trailer park survivors, it is only right that AMEX correct their mistakes. This is an effort in thinning the herd of riff raff.
I have given up on AMEX tight reigns of limiting credit card bonus issuance/card control and switched to the more liberal Chase where I can receive 5 times the bonus points and benefits leaving sad old AMEX in the dust for one tenth of the “fee” cost, more benefits and card that is more widely accepted. Amex is a has been especially strict with their “Pop UP Jail” for their members applying for different AMEX cards. AMEX is just trying to weed out the credit card game players that have no profit for them, just like like you and the 18 year olds using the lounges with Mommy/ Daddy and shirtless uncle Ed, without any benefit to AMEX bottom dollar.
It is all about the $$$$ for AMEX bottom Line… they truly do not give a Hoot about you the card holder unless they make a buck! Just check out AMEX tumbling stock price compared to S+P 500(8/25/23)… AMEX execs heads will roll if there is not a change. So, AMEX made these money saving changes immediate without notice to card holders… Again, Amex EXEC’s are scrambling to stop the bleeding… so they can keep their 2 -3 million dollar salaries. No matter what you say or think… this is exactly the reason for the overboard restrictive action taken by AMEX. My take is look elsewhere for better card benefits! They can keep their overpriced platinum card!
I disagree. Incremental badness is still negative. We have to be more creative or move on, no gravy trains to see here.
To be clear my comment is:
If you think half the signing bonus for 33% more spend is not a “huge negative” then you are in Amex’s pocket or just giving terrible advice
How much money have you made from Amex in the last year? lmao
The positive is that they didn’t increase the fee for primary cardholders? This has to be a bad joke.
See the Thinning The Herd section. Thinning AU crowds at Centurion, Priority Pass, and SkyClub lounges and Marriott/Hilton Golds while not charging primary cardholders a higher annual fee is the positive, in my view.
Is this blog Sponsored by Amex™️? Lower SUB, higher MSR, dramatically increased fees, and you’re spinning this as a generally positive thing?
You don’t mention how the new Platinum family rules wreck the options to collect all welcome offers. Clearly in their pocket and not on the side of the reader.
Now tell us why you’re a huge fan of shrinkflation at the grocery store, too…