As you may have already read via View From the Wing or The Points Guy, American Express is firing the next shots in the rewards credit card competition.  They are publicly introducing two new cards today (though they won’t be available for applications for another month or so).  In my view, Amex’s goal with these cards is clear.  They want everyday folks to put their everyday spending on these cards, and the cards are aptly named the Amex Everyday and Amex Everyday Preferred.  They will give you bonus points not just for where you shop via categories bonuses, but how frequently you shop.

Amex Everday Card

Now let me jump ahead to the best part - they both earn real Membership Reward points that are transferable to hotel and airline partners!  This is the first time I know of that there has been a card without an annual fee that earns points that are fully transferable to hotel and airline partners by itself.  I think that is pretty huge for some families on a budget who don’t want to deal with annual fees or keeping track of when the first fee-free year is up.

Amex EveryDay Credit Card

  • With Amex EveryDay there is NO ANNUAL FEE.
  • When you shop at US Supermarkets you can get 2x points on up to $6,000 in purchases each year. You can earn 1x points on other purchases.  Terms and limitations apply.
  • Use your Card to make 20 or more purchases in any billing period.  Earn 20% extra points on all those purchases less returns and credits. Terms and limitations apply.
  • As an Amex EveryDay Card Member, you have our Fraud Protection Guarantee, which means you won’t be held responsible for any fraudulent charges when you use your Card.
  • Sign-up bonus is 10,000 Membership Reward points after spending $1,000 in the first three months.

Amex EveryDay Preferred Credit Card

  • Earn 3x Membership Rewards points at U.S. supermarkets, on up to $6,000 per year on purchases; 2x on US standalone gas stations; and 1x points on all other purchases.  Terms and limitations apply.
  • Use the Card to make 30 or more purchases in a billing period and earn 50% extra points on all those purchases less returns and credits.
  • Sign-up bonus is 15,000 Membership Reward points after spending $1,000 in the first three months
  • $95 annual fee

The cards are reported to have a 0% introductory APR on your purchases and balance transfers for the first 15 months. After that, your APR will be a variable rate, currently 12.99% to 21.99%, based on your creditworthiness and other factors.

Assessment:

The sign-up bonus might make folks who like to get cards primarily for the sign-up bonus yawn a bit.  I also wish the sign-up bonus were higher.  However, I don’t think these are cards to yawn at overall.  This is a very affordable way to earn Membership Reward points that can be transferred (sometimes with transfer bonuses) to valuable partners like British Airways, Singapore Airlines, Aeroplan, Hilton HHonors, Delta and more.  Remember, even if you don’t fly those airlines, you probably fly their partners such as American Airlines via British Airways Avios or United via Singapore Airlines miles.  I’ve posted about those options before, and will again soon as this is one of the best ways to use Membership Reward points.

The earning potential is pretty good at up to 1.5x on all purchases with the Everyday Preferred version, if you have 30 transactions per month (and sounds like there will be an app that will keep track of that).  I earn 1.5x on my United Club Card now, but that card comes with a $395 annual fee, and this one just has a $95 annual fee.  Being able to get up to 4.5x at grocery stores with the Preferred version (3x + 50% bonus) is fantastic as every family I have ever met has sizable grocery expenses.  Getting up to 3x at gas stations is also very good (2x + 50% bonus).

amex everyday

If you don’t want anything to do with annual fees, then the Everyday version is the most exciting stand alone fee-free product I have seen (I love the Chase Freedom, but it does require having a product with a fee to unlock its real potential).  I get so many emails from people trying to figure out what to do with their Membership Reward points when they cancel their cards due to high annual fees, so this is a perfect solution.

I see these cards as well positioned to compete with cards like the Barclaycard Arrival Plus™ World Elite MasterCard® that earns 2 points worth 1.1 cents each toward travel on all purchases and the Chase Sapphire Preferred that earns points that are transferable to hotel and airline partners for a similar annual fee.  I personally value a Membership Reward point at more than 1.5 cents each (especially since I often transfer points out during bonuses), but even at 1.5 cents each you are getting 2.25 cents in value on all purchases at 1.5x on all purchases via the Preferred bonus if you hit 30 swipes per month.

These cards are a very useful tool in my family’s points earning strategy.

Posted by Mommy Points | 19 Comments

19 Responses to “Earn Real Amex Membership Reward Points With No Annual Fee!”

  1. Gary says:

    The 3 ads are also already up on Amex’s YouTube channel :)

  2. Andrew says:

    I think I will transfer my BCE to Amex Everyday…

  3. Kathy says:

    My annual fee on my PRG is coming up this month so I called last week and was offered 7500 points and 5000 more if I spend $500 in 60 days. I wish I would have known about this before I called. Oh well, no big deal I guess. I’m glad this card has come out though because it will be a good option when my husband’s fee comes due.

  4. Ben says:

    Hmm, I know for a long time Amex has been trying to tap into the millennial crowd, which are known for liking Amex cards even though many of them cannot apply for the more premier SPG or PRG cards. The mobile integration app along with the 20 transactions per month sounds like this is Amex’s way of tapping into that and building long-lasting loyalty that Amex should be your “everyday” card and only card for spending.

    I don’t know what to think about the preferred version, it sounds too good to be honest. If I’m not mistaken it’s essentially cannibalizing the Premier Gold card, 3x on supermarkets, 2x on groceries for only $95? The PRG is 3x flights, 2x groceries/2x supermarkets for $395. Unless you spend A LOT of flights, it won’t be worth it considering both can transfer.

    This is definitely great news for me though, I had the old Blue card which I never used. I’ll be applying for this card later this year and transfer over my credit line!

  5. ed says:

    The preferred and bleu cash preferred gives you a bigger supermarket spend up to 12k. That alone may be worth getting both.

  6. Elena says:

    Perfect for me as I’m close to cancelling my gold amex preferred before the annual fee is due. Maybe they’ll let me downgrade? Thanks

  7. Nathan says:

    This is great news and impeccable timing for me! My PRG card is up for renewal this month, and BRG is up for renewal in May. I was struggling with what to do, because I wanted to keep my MR balance (160k) but don’t really use the cards much and don’t want the high annual fees. Now I can cancel the PRG, sign up for one of these in April, and cancel the BRG in May.

    I need to come up with a spending plan and do the math on the points I’ll earn, so I can decide if I go preferred or not.

    Elena – If you downgrade you might not get the sign-up bonus. I’d only ask about that if you’re trying to avoid a credit pull.

  8. […] a serious note, check out Lucky’s post, Gary’s post, Summer’s post, or Brian’s post for more […]

  9. Scott says:

    @Kathy, Amex will prorate your profile fee, so you may want to apply for one of these and then cancel prior to get most of the fee back.

  10. Nick says:

    Question on Everyday & Preferred:
    Preferred: What happens after I max out the 6K supermarket spend? It is 3X – then what does it drop down to? 1X?
    Everyday: Same question – what happens after I max out the 6K supermarket spend? It is 2X – then what does it drop down to? 1X?
    Thanks for any info.

  11. ed says:

    @nick
    Yes to both. 1x after 6k limit

  12. Andi says:

    Awesome opportunity!

  13. Debra says:

    Looks like these cards will also have smart chips…cool.

  14. Still not sure this is worth it, as I have the old version of the Amex Blue Cash card. It gives 5% cash back on gas, groceries, and drug stores after hitting a spending minimum, and has no annual fee and no transaction number requirements (and no max on the cash back you earn). Probably the reason Amex no longer offer this card — it was too good of a deal!

  15. Bob says:

    Thks MommyPoint.

    With the point bonus – supermarket category becomes 4.5x points, and the gas station category becomes 3x points?

    And these are MR points transferable to travel partners? If yes, that’s pretty decent IMO.

    • mommypoints says:

      With the Preferred card those are the rates as I understand them and I also understand that they are fully transferable MR points!

  16. Bob says:

    I think the interpretation of how the bonus works is incorrect. If you earn 3x on groceries and make the qualifying 30 transactions in a month, I interpret the total points to be 3.5x. In other words I don’t think you get the 50% bonus on POINTS earned but on DOLLARS spent. Thoughts?

  17. […] done several times. If you want to get more information about these new cards, you can go here, here, here, here, or here. Like I said, this news was blowing up […]

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