From 1 July 2017, the American Express Gold Card’s monthly bonus structure changes: you will earn 1,000 Membership Rewards Points when you complete six transactions of Rs.1,000 or more each in a calendar month. This replaces the earlier requirement of four such transactions. Though the point value remains the same, the increased transaction requirement matters for cardholders who previously struggled to meet the four-transaction threshold. The change is expected to affect similar Amex products as well, such as the MRCC.
Amex Gold Charge Card India
Changes to Amex Gold Card Monthly Bonus Reward Points Eligibility
Until June 2017:
- 1,000 bonus points
- Eligibility: Four transactions of Rs.1,000 or more in a calendar month
From July 2017:
- 1,000 bonus points
- Eligibility: Six transactions of Rs.1,000 or more in a calendar month
- Renewal fee reversal option: Redeem 12,000 Membership Rewards Points to offset the annual membership fee
The option to reverse the renewal fee by redeeming points has been extended to this card, similar to changes recently introduced on other Amex cards such as the Platinum Travel Card. Some cardholders have already used large point redemptions to waive fees on other products. Besides using points for statement credits, Amex members can also redeem points for gold collections in 18k and 24k options.
Amex Gold Card Redemption
Here is how the effective reward rate looks based on typical redemptions:
If you redeem points for the 18-carat collection, receiving an Rs.7,500 statement credit:
- Estimated annual spend: Rs.300,000 (including the transactions used to earn the monthly bonus)
- Approximate reward rate: 2%
If you redeem points for the 24-carat collection, receiving an Rs.10,000 statement credit:
- Estimated annual spend: Rs.600,000 (including the transactions used to earn the monthly bonus)
- Approximate reward rate: 1.75%
To use points for the membership fee waiver, you must redeem 12,000 points, which typically requires additional spending. For example, after redeeming for a 24-carat option and then spending another Rs.600,000 (a combined total of Rs.1,200,000), you might not need to use points for a renewal fee if your overall spend makes you eligible for a fee reversal under Amex’s spend-based benefits. Specific eligibility for fee reversals based on spend can vary by product and the bank’s current rules.
If you hold the Amex Gold Card, consider whether the higher monthly transaction requirement will affect how you use the card. For some, reaching six qualifying transactions per month may be easy; for others it will require adjusting spending patterns or using the card for more frequent small purchases to capture the monthly bonus.
What do you think about the change to the Amex Gold Card’s monthly bonus requirement? Share your views in the comments below.