AMERICAN Express (Amex) has announced changes to its rewards credit cards scheme, but analysis by money saving website Mozo.com.au suggests Amex cards will still out perform the big four banks.
Amex is the latest institution to announce changes to its rewards scheme due to Reserve Bank interchange fee regulation, with changes set to take effect on April 15 next year.
“There has been a lot of change in the rewards credit card market this year and with Amex now signalling an overhaul of its program, many people will be wondering how best to extract value from their card,” Mozo director Kirsty Lamont said.
“While Amex card holders will see a decline in the value of the points they can earn from April next year, the good news is our analysis shows their cards will still out perform the big four banks when it comes to delivering gift cards and flights.”
Mozo.com.au found the average net value of an American Express card will fall 27% next April, while the big four banks schemes have reduced in value by an average of 89 per cent over the past two years.
“Although these are quite significant changes, it’s clear Amex still offers one of the best value rewards cards when compared to the big four banks,” she said.
“If you love rewards, it’s worth doing your research to understand how much you’ll now have to spend on your card to earn a gift card or a flight.”
The website found found big four bank rewards cardholders had to spend an average of $23,295 to receive a $100 gift card – $10,031 more than Amex card holders once changes come into effect.
Analysis also found big four bank cardholders had to spend $13,727 to receive a one way flight from Sydney to Melbourne, while Amex holders will only have to pay $10,088 after the changes.
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