Some credit cards enjoy a rather stellar reputation, and the Amex Platinum is certainly one of them, but a case can be made that it’s actually the worst card for everyday purchases on the market.
It’s one of the most talked about products as a result of genius marketing by Amex but (at least in the U.S.) it’s simply a card that earns one point per $ spent with the exception of airfare and some Amex services.
American Express has excellent card products, and the Platinum Card is very good as well, but it really isn’t for everyone and is definitely not a card one should use for everyday spending.
I listened to an interview with American Express CEO Steve Squeri this week where he talked about consumer trends of the younger generation and they also talked about the Platinum Card.
At some point, he talked about the current Platinum product and the price point as well as the benefit portfolio. In the eyes of Amex management, the younger generation doesn’t mind paying a high annual fee as long as the card confers enough benefits.
The Platinum is indeed just that – a benefit card, and there are plenty attached to the card, to the point where it’s being compared to a coupon book with $1000 (+/-) worth of different coupons.
My main beef with the card is that you earn nothing but 1 Membership Reward Point except for airline tickets, where you earn a generous 5 MR points per US$. You would also earn 5 points for booking prepaid hotels with Amex Travel which – aside from Fine Hotels & Resorts and using up the $200 annual hotel credit – i can’t recommend in the slightest.
Using a card to earn one point (which basically means one mile after transferring it, it’s one airline mile unless there is a transfer promotion) doesn’t make any sense. The charge card does have one clear advantage after establishing a comfortable soft limit credit, the cardholder is able to have even very large purchases approved. That goes for all charge cards though, including Green and Gold.
However, for everyday spending, both Amex and other banks have better cards than the Platinum, especially the aforementioned Gold and Green Card. That doesn’t mean you should cancel your Platinum, especially if you primarily use it to access the Centurion Lounges. Aside from airline tickets and sometimes car rental (with the Premium Insurance Option), I don’t use my AX PLT card for any daily payment transactions.
Conclusion
Banks are marketing several of their high-end card products as premium, and Amex has invested a lot of marketing effort into the prestige reputation of its Platinum Card. Benefits aside, unfortunately, the card falls short as far as point multipliers are concerned.
The U.S. Amex Platinum is a sole benefit card, an account to keep active and use it for access to key benefits but not to use it for spending. At least not if you care about points. If you’re someone who spends millions on the card without much use for redeeming points, then you probably don’t care, and the Platinum suits you fine.
In times where most transactions are completed electronically, either online or via Apple Pay wallet, nobody cares about the color of your card anymore. Certainly not some shop clerk who runs your payment so the assumed “prestige” of paying with a premium card is pretty much imaginary. All you need these days is a pulse and a credit score in the mid 600s to be approved for an Amex charge card (credit cards have a higher requirement).
The times when Amex Platinum cardholders were usually wealthy are over, and that’s by design. Just like full Centurion lounges and lineups to get in are by design: Amex wants that annual fee and hence approves applicants easily.
What is your opinion about the American Express Platinum Card?
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