American Express has announced it is set to slash the cashback offer on two of its most popular cards, the American Express Platinum Cashback Everyday and American Express Platinum Cashback cards. The worst hit customers could see a proportion of their annual cashback halved.
Although it currently offers the best cashback offers on the market, the rate is to be reduced, depending on how much is spent on the card over the course of a year. However, even at the new, reduced rate, the cards will still offer the most competitive cashback deals available.
What changes have been made to American Express cashback?
The changes, which will come in from 4 August 2021 for new and existing customers, are as follows:
|Current cashback offer||New cashback offer|
|American Express Platinum Cashback Everyday||0.5% cashback on spend up to £5,000
1% cashback on spend above £5,000
0.5% cashback on spend up to £10,000
1% cashback on spend above £10,000
|American Express Platinum Cashback (has £25 annual fee)||1% cashback on spend up to £10,000
1.25% cashback on spend above £10,000
0.75% cashback on spend up to £10,000
1.25% cashback on spend above £10,000
The worst-hit customers are those with the Platinum Cashback Everyday card who spend between £5,000-£10,000 per year, as they stand to lose half of what they would have previously earned in cashback. Meanwhile, Platinum Cashback cardholders will lose 0.25% cashback on spending up to £10,000.
How much cashback will I lose after the changes?
As previously stated, the amount of cashback cardholders will lose out on will depend on the amount they typically spend on the card over the course of a year. In the table below we summarise the cashback paid out on different levels of spend, before and after the changes.
It is worth noting the American Express Platinum Cashback card has a £25 annual fee, while the American Express Platinum Cashback Everyday card doesn't have a fee. The figures in the table don't take into account the annual fee. Overall, for people who spend up to £10,000 annually, the free card is better value, while for those who spend more than £10,000, it is worth paying the £25 annual fee as the extra cashback you earn offsets it. This remains true after the changes come into force.
How much cashback can you earn on the American Express Cashback cards, before and after the rate changes?
|Annual spend||American Express Platinum Cashback Everyday||American Express Platinum Cashback|
|£5,000||£25 (before 4 August 2021)
£25 (after 4 August 2021)
£50 (before 4 August 2021)
£37.50 (after 4 August 2021)
|£10,000||£75 (before 4 August 2021)
£50 (after 4 August 2021)
|£100 (before 4 August 2021)
£75 (after 4 August 2021)
|£20,000||£175 (before 4 August 2021)
£150 (after 4 August 2021)
£225 (before 4 August 2021)
£200 (after 4 August 2021)
Which cashback card should I get?
As discussed above, even with the changes, American Express Platinum Cashback and American Express Platinum Cashback Everyday remain the most competitive cashback cards on the market. This is compounded by the attractive introductory offers on both of the cards, which give substantial bonuses to cardholders in the first three months after taking out the card, as well as ongoing offers with American Express retail and travel partners.
The introductory offers for the individual cards are:
- American Express Platinum Cashback - 5% cashback on purchases, up to £125 (for the first three months of card membership)
- American Express Platinum Cashback Everyday - 5% cashback on purchases, up to £100 (for the first three months of card membership
For full details on the two cards, read our article "Compare the best cashback and reward credit cards".
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