Eight months ago I was pretty excited about my American Express Blue Cash Card. I love rewards credit card because I love to get paid for buying thing I would have bought anyway. Awesome.
The problem with some credit card rewards programs is that they can be misleading. Actually, to say I was misled would be misleading; as far as I’m concerned, American Express flat out lied to me.
When “Cash Back” isn’t Cash Back
My card, the American Express Blue Cash (which is no longer offered) was advertised as “Up to 5% Cash Back”. I followed the rules, made my purchases, and knew that after a year I would have some amount of cash back. I actually had a really good year for rewards money over the last 12 months and I got $216.43 in what American Express calls “Reward Dollars”.
Wait a minute… You advertised cash back and now you’re telling me I’m getting reward dollars? I didn’t want reward dollars. I want the cash you promised me.
I logged onto their site and luckily there is an option to redeem reward dollars for a statement credit. So I should be able to turn my $216.43 of Reward Dollars into $216.43 of real dollars with a statement credit. Perfect.
Except that would be too convenient.
No, you can only redeem Rewards Dollars in $25 increments. I could get a $200 statement credit, but then I would have $16.43 of unused Rewards Dollars that would never do me any good.
And while I’m pissed off, I’d like to point out that a statement credit is not cash back. Can I put a statement credit inside a birthday card like cash? Can I use a statement credit to give money to a beggar at the Preston exit ramp off George Bush? Can I slip my favorite performer a statement credit to let her know how much I appreciate her dancing abilities? The obvious answer to all of these questions is “no”.
FYI, I don’t give cash to beggars. I’ll hand them food if I have some, but no cash. I was just proving a point.
FYI2, I personally find strip clubs disgusting so I would never actually do the third one either. Again, just making a point.
The American Express Rewards Store is a Joke
Since I knew I wouldn’t be able to redeem all $216 for cash back, I decided to look at some options in their store. I figured if I could buy something for $16 out of the store, I can at least get some value out of the leftover rewards.
Or not. The cheapest thing they have is $25.
Maybe I can find something for $41. That way I can spend my Rewards Dollars down to $175 and get the rest in a statement credit. I sorted the entire store by price and tried to find something I wanted.
The only option that remotely interested me were golf balls. I golf occasionally, and Lord knows I lose enough golf balls in the water/woods/back yards of people who don’t even have a golf course view. A dozen balls might get me through half a round, so I figured it would be a good use of my rewards.
There were a bunch of different types and brands, so I just picked the one closest to $41. It was a dozen Callaway Warbird Plus Balls for $38. Seems expensive for golf balls, but these are probably really nice.
I was kind of looking forward to golfing with nice balls. I even started to convince myself that my failure to golf better than your average double amputee is due to my lack of appropriate equipment instead of my miserable swing. And if not, at least it might finally keep my golf buddy from making fun of the $0.47 balls I get on the clearance rack at Golf Discount.
Before I made the purchase, I decided to do some comparison shopping. How much does Amazon sell the same golf balls for? This is where I get a little pissed off.
Amazon sells the exact same balls for $14.86, marked down from $25. (even the full retail price is nowhere near the $38 Amex is trying to charge)
Now I’m curious. Where could they possibly be getting this $38 price? I decided to price check some other places. Callaway’s website lists the same product for $16.99, marked down from $19.99. Yes, the retail price from the actual retailer is half of what Amex is selling them for.
Just for kicks, I did one more search and found out that I can get a 36 pack of these balls from Amazon for $32.97. That’s 36 balls for $5 less than American Express wants to charge for a dozen.
American Express Lied to Me
I love getting rewards for my credit card purchases, but I hate rewards programs. Chase does a great job of making 100 points = $1 of rewards. Citi will give you $1 for 100 reward points, but only if you save up and spend your points on big purchases.
It’s too much of a hassle to learn about all these programs and make sure you are getting a fair exchange for your points before deciding if the rewards are worth it.
That’s why I was so excited about a “Cash Back” card. I was under the impression that I wouldn’t have to deal with rewards crap.
I will take a little bit of blame here because I’m sure I missed some fine print somewhere, but if I were a lawyer, I would sue the pants off of American Express for falsely advertising this card as a “cash back” credit card.
There’s nothing “cash back” about it.
For more on credit cards, how to find good ones, and how to not get into credit card debt check out these articles.
Kevin McKee is an entrepreneur, IT guru, and personal finance leader. In addition to his writing, Kevin is the head of IT at Buildingstars, Co-Founder of Padmission, and organizer of Laravel STL. He is also the creator of www.contributetoopensource.com. When he’s not working, Kevin enjoys podcasting about movies and spending time with his wife and four children.
25 thoughts on “American Express Rewards Suck!”
CityFlips
Very frustrating! I have a Citi card that is pretty similar. I can get cash back, but only in $50 increments. I almost never use that card, so it’s really hard to get up to $50! They send a $50 check when I get up that high if I request it. Discover is my favorite card, because I can usually turn $20 cash back into a $25 gift card of some type!
Kevin McKee
The discover rewards sound great. It’s too bad they charge such high interchange fees that nobody accepts them.
John @ Curious Cat Investment Blog
Discover refused to pay the money they owed me http://investing.curiouscatblog.net/2007/06/15/incredibly-bad-customer-service-from-discover-card/ These large financial firms by and large act much much more poorly than “delinquent” teenagers.
For some reason those in power don’t seem to care about bad behavior if you also are a member of a country club http://investing.curiouscatblog.net/2010/06/07/can-bankers-avoid-taking-responsibility-again/ In my opinion there should be higher expectations of decent and honorable behavior if you are wealthy, instead we accept dishonorable actions by the sorts of people running large financial firms. My experience leads me to believe if a large financial firm isn’t ripping you off, they just haven’t figured out a way past your defenses yet (some people make it very easy for large financial firms to rip them off, others know that those firms can’t be trusted and expend effort to stop those firms from stealing from them). They will keep trying.
Kevin McKee
Big banks can definitely screw customers, but if you play your cards right, you can get lots of free money from the banks. They aren’t just going to give it to us though; we have to go take it. For example, I got $225 from Chase last year for signing up for products and making minimal purchases.
Paula @ AffordAnything.org
Yikes! I have an AmEx Blue Cash card, too! I hope I can get … er … statement credits! I got the card a little less than a year ago and haven’t looked into redeeming the rewards yet …
Could you save up that leftover $16 until it accumulates more rewards and reaches $25, and then convert it into a statement credit?
Kevin McKee
I can save up more money until it gets to $25, but the problem with Blue Cash is that it pays rewards every 12 months. I didn’t want to wait another year, so I actually called AMEX and had them change my card to a different one that pays rewards every month. Although, I have so many more cards with better rewards now, I don’t know when I’d ever use the AMEX anymore. I get 2-5% on just about everything nowadays, and my new AMEX is only offering 1%
Stan Olshefski
Blue Cash switched over to the redeem for a statement credit in $25 increments at any time as well — though the rewards accumulation structure is the same.
Ashley @ Money Talks
I have an Amex and I get cash back.. true honest cash back in a check. It must be a different card. I think it’s called True Earnings or something.
Anywhoo… yes, take the $200 statement credit. You can buy a gift for your favorite entertainer instead of giving her cash.
Kevin McKee
Haha, I’m just imagining some guy walking into a strip club with a box of Omaha Steaks and trying to hand it to his favorite dancer while she’s performing! Someone needs to do that and post a video!
Sara
Whaaaat?! I don’t have anything helpful to add except for some more outrage. *shakes angry fist* 😛
retirebyforty
I’m pretty happy with Chase. It’s $25 increment, but I can deal with that.
Marie at familymoneyvalues
I got turned off by any kind of rewards cards years ago – thanks to the airlines!
I know I am missing the boat on some good stuff – cause I hear my relatives talking about trips to Hawaii they got just from charging things (like college tuition – shudder) on their cards. To be fair, they did pay off before interest charges came due.
But it all seems like such a hassle!
Buck Inspire
I’m using Discover more to try and win their million dollar giveaway. Yeah, just call me sucker! I think you found your next music video, Omaha Steaks at a strip club. Haha.
LLF
I have the Citi card that gives me cash back in $50+ increments, meaning that it has to be more than $50 before they cut a check. I have not problem with at since any amount above $50 I can get all of it out. However, their hidden limit is that you can only get $300 back per year. Anything more stays in the account which I guess I am ok with too. This is why I buy everything on my card, even $0.99 purchases. I don’t carry but $20 cash.
South County Girl
I have an old CC from HSBC that gives me 2% cash back on every purchase…
and they cut me a check in increments of $25 and there’s no limit to how much I can earn…
It was originally Householdbank… I don’t know if they still offer it but I LOVE it
Ryan
South County – I got it through Orchard Bank – right after I got it, they stopped offering it. I have a gut feeling that when my card expires in December, they won’t allow me to continue the great cash back.
Kevin – Have you tried calling them? I did the same thing, got the card, spent some money, and they changed the deal to every year. I knew I wouldn’t get up to $25, so I called and asked if they could credit my account with the $9 or so I had earned – and they did, no questions asked. It’s worth a shot.
No Debt MBA
I have a Fidelity AmEx card that I haven’t had any trouble with. 2% back and they automatically sweep it into the investment account of your choice when you’ve accumulated $50+.
Crystal
We use two cards. The Pentagon Federal Credit Union Visa gives 1% statement credit on everything and 5% statement credits for gas.
The Discover More card gives us 5% cash back on rotating categories that you can either take as cash back in certain increments (they send you a check), apply to your bill, or use to buy discounted gift cards. For example, I will use $45 of my “cash back rewards” to buy a $50 Kohl’s gift card. I like the discounted gift cards and items the best since I can get them for myself or for others…
Sweet Willy T.
I wound up in a credit situation wherein I had none, exempting an AMEX that basically sat unused for almost two years. I paid the anual fees somehow, and I had nothing but great experiences. I can have cash cut if I want it, or I can get GC’s. I did my homework too; if you pony up for a better card you get pegged on the renewal annualy, but the “rewards” are actually [sic] rewards.
CH
When they say “cash,” MONEY IN SOME FORM is implied. Not to be a jerk, but I’m 19 and even I know that it’s common sense to read the fine print because straight up free cash is pretty hard to come by.
It’s $16. It won’t kill you to wait until the next reward for it. And a statement credit is just as good as cash, for the most part, particularly since you’ll just have a negative balance if your balance is up to date.
Costco American Express cards send you a Costco check, which you can take to Costco and cash for actual paper money. That’s what I have, and it works just fine.
Nobody lied to you. You’re just an idiot who chose not to read the fine print and wants to complain about it now.
Jacob
Its actually fairly common to have rewards programs only let you redeem in increments of $25. Its in the terms an conditions when you sign up.
If you get a statement credit, and have a 0 ballance you can ask AMEX to send you a check, if you really need to feel the money.
Frank
Not only is $25 incremental cash back rewards common, but they blatantly tell you while signing up (I have the Blue Cash Preferred card) that the rewards will be paid as statement credits. I’m not sure how he could have missed that.
Kevin
How advanced would our society be if we took the energy required to complain about big corporations and put it into common sense thinking and not playing the victim?
If your mind can not grasp the concept that “statement credit” is the EXACT same as cash, then you have bigger issues than what credit card to use. Please do us all a favor — stick with pre-paid cards and maybe find more constructive use of your funds outside of strip clubs.
donald e jaeger
i found this very disapointing. i am long time customer i\,idont remember getting thind back. they must have 1000 web sites acct7-81002
David
I will never do business with American Express AGAIN. They do not tell the truth…or they give half truths. They charge too much for their card and their rewards stink! I am done with them. I urge you also not to do business with them.
Very frustrating! I have a Citi card that is pretty similar. I can get cash back, but only in $50 increments. I almost never use that card, so it’s really hard to get up to $50! They send a $50 check when I get up that high if I request it. Discover is my favorite card, because I can usually turn $20 cash back into a $25 gift card of some type!
The discover rewards sound great. It’s too bad they charge such high interchange fees that nobody accepts them.
Discover refused to pay the money they owed me http://investing.curiouscatblog.net/2007/06/15/incredibly-bad-customer-service-from-discover-card/ These large financial firms by and large act much much more poorly than “delinquent” teenagers.
For some reason those in power don’t seem to care about bad behavior if you also are a member of a country club http://investing.curiouscatblog.net/2010/06/07/can-bankers-avoid-taking-responsibility-again/ In my opinion there should be higher expectations of decent and honorable behavior if you are wealthy, instead we accept dishonorable actions by the sorts of people running large financial firms. My experience leads me to believe if a large financial firm isn’t ripping you off, they just haven’t figured out a way past your defenses yet (some people make it very easy for large financial firms to rip them off, others know that those firms can’t be trusted and expend effort to stop those firms from stealing from them). They will keep trying.
Big banks can definitely screw customers, but if you play your cards right, you can get lots of free money from the banks. They aren’t just going to give it to us though; we have to go take it. For example, I got $225 from Chase last year for signing up for products and making minimal purchases.
Yikes! I have an AmEx Blue Cash card, too! I hope I can get … er … statement credits! I got the card a little less than a year ago and haven’t looked into redeeming the rewards yet …
Could you save up that leftover $16 until it accumulates more rewards and reaches $25, and then convert it into a statement credit?
I can save up more money until it gets to $25, but the problem with Blue Cash is that it pays rewards every 12 months. I didn’t want to wait another year, so I actually called AMEX and had them change my card to a different one that pays rewards every month. Although, I have so many more cards with better rewards now, I don’t know when I’d ever use the AMEX anymore. I get 2-5% on just about everything nowadays, and my new AMEX is only offering 1%
Blue Cash switched over to the redeem for a statement credit in $25 increments at any time as well — though the rewards accumulation structure is the same.
I have an Amex and I get cash back.. true honest cash back in a check. It must be a different card. I think it’s called True Earnings or something.
Anywhoo… yes, take the $200 statement credit. You can buy a gift for your favorite entertainer instead of giving her cash.
Haha, I’m just imagining some guy walking into a strip club with a box of Omaha Steaks and trying to hand it to his favorite dancer while she’s performing! Someone needs to do that and post a video!
Whaaaat?! I don’t have anything helpful to add except for some more outrage. *shakes angry fist* 😛
I’m pretty happy with Chase. It’s $25 increment, but I can deal with that.
I got turned off by any kind of rewards cards years ago – thanks to the airlines!
I know I am missing the boat on some good stuff – cause I hear my relatives talking about trips to Hawaii they got just from charging things (like college tuition – shudder) on their cards. To be fair, they did pay off before interest charges came due.
But it all seems like such a hassle!
I’m using Discover more to try and win their million dollar giveaway. Yeah, just call me sucker! I think you found your next music video, Omaha Steaks at a strip club. Haha.
I have the Citi card that gives me cash back in $50+ increments, meaning that it has to be more than $50 before they cut a check. I have not problem with at since any amount above $50 I can get all of it out. However, their hidden limit is that you can only get $300 back per year. Anything more stays in the account which I guess I am ok with too. This is why I buy everything on my card, even $0.99 purchases. I don’t carry but $20 cash.
I have an old CC from HSBC that gives me 2% cash back on every purchase…
and they cut me a check in increments of $25 and there’s no limit to how much I can earn…
It was originally Householdbank… I don’t know if they still offer it but I LOVE it
South County – I got it through Orchard Bank – right after I got it, they stopped offering it. I have a gut feeling that when my card expires in December, they won’t allow me to continue the great cash back.
Kevin – Have you tried calling them? I did the same thing, got the card, spent some money, and they changed the deal to every year. I knew I wouldn’t get up to $25, so I called and asked if they could credit my account with the $9 or so I had earned – and they did, no questions asked. It’s worth a shot.
I have a Fidelity AmEx card that I haven’t had any trouble with. 2% back and they automatically sweep it into the investment account of your choice when you’ve accumulated $50+.
We use two cards. The Pentagon Federal Credit Union Visa gives 1% statement credit on everything and 5% statement credits for gas.
The Discover More card gives us 5% cash back on rotating categories that you can either take as cash back in certain increments (they send you a check), apply to your bill, or use to buy discounted gift cards. For example, I will use $45 of my “cash back rewards” to buy a $50 Kohl’s gift card. I like the discounted gift cards and items the best since I can get them for myself or for others…
I wound up in a credit situation wherein I had none, exempting an AMEX that basically sat unused for almost two years. I paid the anual fees somehow, and I had nothing but great experiences. I can have cash cut if I want it, or I can get GC’s. I did my homework too; if you pony up for a better card you get pegged on the renewal annualy, but the “rewards” are actually [sic] rewards.
When they say “cash,” MONEY IN SOME FORM is implied. Not to be a jerk, but I’m 19 and even I know that it’s common sense to read the fine print because straight up free cash is pretty hard to come by.
It’s $16. It won’t kill you to wait until the next reward for it. And a statement credit is just as good as cash, for the most part, particularly since you’ll just have a negative balance if your balance is up to date.
Costco American Express cards send you a Costco check, which you can take to Costco and cash for actual paper money. That’s what I have, and it works just fine.
Nobody lied to you. You’re just an idiot who chose not to read the fine print and wants to complain about it now.
Its actually fairly common to have rewards programs only let you redeem in increments of $25. Its in the terms an conditions when you sign up.
If you get a statement credit, and have a 0 ballance you can ask AMEX to send you a check, if you really need to feel the money.
Not only is $25 incremental cash back rewards common, but they blatantly tell you while signing up (I have the Blue Cash Preferred card) that the rewards will be paid as statement credits. I’m not sure how he could have missed that.
How advanced would our society be if we took the energy required to complain about big corporations and put it into common sense thinking and not playing the victim?
If your mind can not grasp the concept that “statement credit” is the EXACT same as cash, then you have bigger issues than what credit card to use. Please do us all a favor — stick with pre-paid cards and maybe find more constructive use of your funds outside of strip clubs.
i found this very disapointing. i am long time customer i\,idont remember getting thind back. they must have 1000 web sites acct7-81002
I will never do business with American Express AGAIN. They do not tell the truth…or they give half truths. They charge too much for their card and their rewards stink! I am done with them. I urge you also not to do business with them.