UK Edition
American Express cuts cashback rates on market-leading cards
American Express has made a raft of cuts to rates on its cashback credit cards.
Under the old terms, its Platinum Cashback Everyday card customers get 0.5pc cashback on spending up to £3,000, 1pc between £3,501 and £7,000 and 1.25pc on anything higher.
Now customers will get 0.5pc back on purchases up to £5,000 and 1pc on purchases over £5,000.
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Previously, Platinum Cashback credit card customers could earn 1.25pc on all spending.
Now customers will earn 1pc cashback on purchases up to £10,000 and 1.25pc if they spend over that limit.
They will also no longer get 2.5pc cashback on their "anniversary month" – the month when they first signed up for a card – a bonus that was paid to anyone who spent over £10,001 per year.
The introductory 5pc cashback for three months for new customers that is offered by both cards is unchanged.
This is capped at £100 for Platinum Everyday customers and £125 for Platinum customers.
An American Express Platinum credit card customer, who spends £5,000 per year will receive £9 less in the first year under the new rules, according to MoneySavingExpert.com.
This takes into account the £25 per year fee.
A customer who has had the card for more than a year, spending over £20,000, will see a drop of £45 annually in cashback under the new terms.
An American Express Everyday credit card customer spending £3,000 per year will see no change in the amount of cashback they can earn. A customer spending £5,000 per year will see a drop of £8 in the first year and £7 annually, thereafter.
The changes already apply to new customers and will roll out to existing cardholders from November 8.
The lender says that the changes are due to a "recent review" of the cards and that the rates have not changed for seven years.
A spokesman said: “We took the decision to make changes to the earn rates rather than cap the amount of cashback
Cardmembers can earn or limit cashback to certain categories and types of spending like some other cashback cards available on the market.
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