Breaking Down AMEX Retention Offers: Are They Worth It?

[helloworld]

Many of us face a tough decision when the annual fee comes around, but understanding the available retention offers can help you make a more informed choice.

Would like to share some insights into American Express Gold Charge Card retention offers and how they affect your net rewards after considering the card’s annual fee.

Normal reward rate:

		18k/24k Collection
Welcome Gift (Spend 5k in 90days)	4000 MR	-
Referral Benefit (Spend 5k in 90days)	2000 MR	-
Regular Reward (Incl. Fuel and Utility)	1 MR/50	0.33 - 0.58 (Amzn - Taj)
Milestone benefits (6 transactions of 1000 each in a calendar month)	1000 MR	-
Spend 72000 in a year (6000x12)
Reward Rate	Regular 1x purchases (1440 MR + 12000 MR = 13440 MR)	6.16% - 10.83%
	Reward Multiplier 5x purchases (7200 MR + 12000 MR = 19200 MR)	8.8% - 15.47%
Net Reward Rate for 1st Year 1180 (JF) + 72000 (Spends)	4000 MR + 2000 MR + (13440 MR to 19200 MR)	8.76% - 19.97%

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Problem: Above returns drastically changes based on retention offer because there is no annual fee waiver based on spend amount in Gold charge.

- If the fee waived full, then above are your return rate on this card.

Note: If accumulation takes multiple years then multiple retention offers needs to be considered.

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Here are a few sample retention offers I’ve come across (these may vary based on individual spending, card usage, and your association with AMEX):

1. Pay Full Fee (5310) and get 10000 MR (Net Return*: 9.4% - 20.96%)
   1. You’ll pay the full annual fee, but the 10,000 MR points offer gives you a significant return, especially if you can redeem them for high-value rewards in the Gold collection.
2. Pay Half Fee (2655) (Net Return*: 7.34% - 17.42%)
   1. If you're offered the option to pay a reduced fee, your net return will depend on how much value you extract from the MR points. Even with half the fee, your rewards rate can still be strong.
3. Full Fee Reversal on 1.5L spend in next 3M (Net Return*: 4.22% - 12.05%)
   1. This offer is great if you're planning on spending ₹1.5L or more in the next 3 months. Essentially, you’ll get the fee waived if you meet the spend requirement, which can result in significant savings and rewards.

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How Are Net Rewards Calculated?:​

The actual net reward rate you get from these retention offers depends on:

• Your total spending (first year + second year spends)
• Retention offer value (MR points, partial fee waiver, or full fee waiver)
• MR redemption value (whether you redeem for low-value rewards or premium rewards)

Retention offers can significantly reduce the impact of the AMEX Gold Charge annual fee and, in some cases, give you a net positive return in terms of rewards. However, it’s important to consider your spending habits and the type of rewards you typically redeem.

Has anyone else received a similar or different retention offer for their AMEX card?

 

[Deleted member 23535]

Tq so much

 

[bsc0008]

I also got the same offers as others. But if we choose to get 10K, we'll instantly get 5K points now and the remaining 5K will be credited in next 90 days.

 

[sjmajumder]

My renewal is in March. I got complete waiver till 2021 (8 years in a row). From 2022 they are not giving waiver. Last 2 years I have taken the offer of spend 60K in 90 days for full reversal including GST.

Let's see what happens this year.

 

[helloworld]

My renewal is in March. I got complete waiver till 2021 (8 years in a row). From 2022 they are not giving waiver. Last 2 years I have taken the offer of spend 60K in 90 days for full reversal including GST.

Let's see what happens this year.

Good to know that..

Since you took spend based waiver in 2 years, according to you

- Is it be beneficial to get waiver on spending 60k in 90 days?

Based on other posts they usually ask 1L or higher but 60k seems less but apart from this spend waive the fee, any benefit we're missing here to justify that it is also good option to consider?

 

[sjmajumder]

according to you.. will it be beneficial to get waiver on spending 60k in 90 days? (ofcourse, it will waive annual fee other than that anything missing here to justify that it is also good option to consider)

Well last year, that is in 2023, I have redeemed 18000 points for Amazon 7K GV four times. I have both Gold Charge and MRCC.

 

[helloworld]

Well last year, that is in 2023, I have redeemed 18000 points for Amazon 7K GV four times. I have both Gold Charge and MRCC.

this is for your accumulated points. I'm more interested in your justification of 'spending 60k in 90 days to get 5310 waiver'? or which other options they provided and why you choose particularly this option?

Sounds like basic, but just want to consider all options and their importance. TIA.

 

[vaibhav111vaibhav111 is verified member.]

My renewal is in March. I got complete waiver till 2021 (8 years in a row). From 2022 they are not giving waiver. Last 2 years I have taken the offer of spend 60K in 90 days for full reversal including GST.

Let's see what happens this year.

yup.. same thing with my dad's too gold from 2014 and plantium from 2017.. last year he went with to pay 5310 for gold in exchange 10k MR point and 50% discount on Plantium fees including GST.

 

[helloworld]

yup.. same thing with my dad's too gold from 2014 and plantium from 2017.. last year he went with to pay 5310 for gold in exchange 10k MR point and 50% discount on Plantium fees including GST.

any benefits they removed from gold charge during this period? because I do not get why they kept high price for no extra benefits or is it like this from beginning?

 

[vaibhav111vaibhav111 is verified member.]

any benefits they removed from gold charge during this period? because I do not get why they kept high price for no extra benefits or is it like this from beginning?

at that time he didn't knew of trnx of 1000 x 6. in last 4 month be have completed/received 1000 additional MR cause i had given my clear understanding how to use Amex reward portal and pay of utilities and other bill via amazon pay. including MRCC he got like 4 month back. as far i know no service was removed but then i didn't had gold card either, i got in jan of this year. and the annual charges always used to reversed when called to amex (spend always were higher like 10/12/20L or even high) until last year.. so in last 10 yr or so he paid only once in gold and same for plat travel.

 

[R@ndomiz€r]

Amex has realised that this card is probably not giving enough value to the users in the Indian market because almost all new users are churning out within 1-2 years. They also sent a survey in today. So my guess in near future we might see some revamped offering and benefits on this card.

 

[bonheur]

Amex has realised that this card is probably not giving enough value to the users in the Indian market because almost all new users are churning out within 1-2 years. They also sent a survey in today. So my guess in near future we might see some revamped offering and benefits on this card.

What kind of questions are there in this survey?

 

[R@ndomiz€r]

What kind of questions are there in this survey?

Which other cards you use? Is Gold card a better value? Why do you use other cards and not AMEX gold charge. Then some around services and support with a few profiling questions. It looked like they're gathering data on what is exactly ailing their so called premium gold card.

 

[Slayer]

Which other cards you use? Is Gold card a better value? Why do you use other cards and not AMEX gold charge. Then some around services and support with a few profiling questions. It looked like they're gathering data on what is exactly ailing their so called premium gold card.

What do you think could elevate the current card for people to spend more than 6k a month

 

[R@ndomiz€r]

What do you think could elevate the current card for people to spend more than 6k a month

There has to be a clear reward to fee ratio for Gold card. Currently, 5k+ annual fees and all you get is reward points and hypothetical no spend limit. If not for bonus RP, people won't even spend 6k on it.

Few things they can try -

1. Merchant acceptance. People need more avenues to spend.
2. Fee revision, if someone can get most of the premium cards at a lower price point with high to comparable benefits and higher acceptance why would anyone even think of renewing it after a year?
3. Spend based incentive. All leading banks including amex on certain products gives a spend based incentive either with fee reversal or some milestone related rewards. With 6k/month milestone the incentive is too trivial for a card with high annual fees. In fact, even an existing amex customer would either upgrade to Plat travel if a high spender or move down to MRCC if a low spender as both of these cards provide overall a better value.

So the entire offering of Gold card needs to be relooked at considering apart from name nothing is actually Gold worthy in terms of returns.

 

[Slayer]

There has to be a clear reward to fee ratio for Gold card. Currently, 5k+ annual fees and all you get is reward points and hypothetical no spend limit. If not for bonus RP, people won't even spend 6k on it.

Few things they can try -

1. Merchant acceptance. People need more avenues to spend.
2. Fee revision, if someone can get most of the premium cards at a lower price point with high to comparable benefits and higher acceptance why would anyone even think of renewing it after a year?
3. Spend based incentive. All leading banks including amex on certain products gives a spend based incentive either with fee reversal or some milestone related rewards. With 6k/month milestone the incentive is too trivial for a card with high annual fees. In fact, even an existing amex customer would either upgrade to Plat travel if a high spender or move down to MRCC if a low spender as both of these cards provide overall a better value.

So the entire offering of Gold card needs to be relooked at considering apart from name nothing is actually Gold worthy in terms of returns.

I think the third point is kind of a weak argument as I would keep GC as they give 50% waiver or points for full fees payment which are both decent techniques to lower down the "official" annual fees of the card.

I legit spent 72k in the last 12 months that too through AmEx gyftr to get 5X points and pay util bills.

Wouldn't mind to pay 3-4k for a card (50% waiver) which can give me back 7-10k

 

[R@ndomiz€r]

I think the third point is kind of a weak argument as I would keep GC as they give 50% waiver or points for full fees payment which are both decent techniques to lower down the "official" annual fees of the card.

I legit spent 72k in the last 12 months that too through AmEx gyftr to get 5X points and pay util bills.

Wouldn't mind to pay 3-4k for a card (50% waiver) which can give me back 7-10k

Possibly it gives you a better value so definitely that is ok. But in general, most won't be able to extract significant value especially if they're not willing to pay an additional fee, which typically are the most users in India. In fact, even a paid Regalia Gold gives you a better value if you can meet the milestones across the same categories.

I have a three cards from AMEX and with Plat Travel and MRCC my incentive to pay additional 5k for Gold is absolutely next to nothing because even if I wish to spending over 7 lakhs via AmEX is a challenge and I'm from Bombay where I face challenges in most places for offline acceptance. I'd rather pay 5k for Plat travel as my benefits will definitely outweigh the fees paid and MRCC I can get the fee reversed by spending 150k.

 

[Slayer]

Possibly it gives you a better value so definitely that is ok. But in general, most won't be able to extract significant value especially if they're not willing to pay an additional fee, which typically are the most users in India. In fact, even a paid Regalia Gold gives you a better value if you can meet the milestones across the same categories.

I have a three cards from AMEX and with Plat Travel and MRCC my incentive to pay additional 5k for Gold is absolutely next to nothing because even if I wish to spending over 7 lakhs via AmEX is a challenge and I'm from Bombay where I face challenges in most places for offline acceptance. I'd rather pay 5k for Plat travel as my benefits will definitely outweigh the fees paid and MRCC I can get the fee reversed by spending 150k.

How to get paid Regalia Gold when Cuckdfc portal does not show that card after entering OTP

 

[R@ndomiz€r]

How to get paid Regalia Gold when Cuckdfc portal does not show that card after entering OTP

Offline application via hdfc branch

 

[bonheur]

What do you think could elevate the current card for people to spend more than 6k a month

If they just could bring the 20k spend milestone to Gold as well, I would close MRCC in a heartbeat to happily live with the fantastic combination of Plat Travel credit and Gold charge cards.

 

[helloworld]

There has to be a clear reward to fee ratio for Gold card. Currently, 5k+ annual fees and all you get is reward points and hypothetical no spend limit. If not for bonus RP, people won't even spend 6k on it.

Few things they can try -

1. Merchant acceptance. People need more avenues to spend.

This applies all AMEX cards, so leaving this option.

2. Fee revision, if someone can get most of the premium cards at a lower price point with high to comparable benefits and higher acceptance why would anyone even think of renewing it after a year?
3. Spend based incentive. All leading banks including amex on certain products gives a spend based incentive either with fee reversal or some milestone related rewards. With 6k/month milestone the incentive is too trivial for a card with high annual fees. In fact, even an existing amex customer would either upgrade to Plat travel if a high spender or move down to MRCC if a low spender as both of these cards provide overall a better value.

So the entire offering of Gold card needs to be relooked at considering apart from name nothing is actually Gold worthy in terms of returns.

If they just could bring the 20k spend milestone to Gold as well, I would close MRCC in a heartbeat to happily live with the fantastic combination of Plat Travel credit and Gold charge cards.

I don't know whether its correct or not, I'm thinking that 'Gold charge' doesn't have fixed credit limit to that user and vary month on month basis. So, asking us to spend 5L in a year, or put some limits to achieve milestone may not work for all users. 20K may work for most of them but not sure about 4L.

I can wish, kept fee around 2.5k and waive as per customer spends.