Convenience Fee on Amazon Pay Gift Vouchers via Amex Reward Multiplier

[sjmajumder]

Recently, a convenience fee of 0.75% + GST (effectively 0.885%) has been introduced for purchasing Amazon Pay Gift Vouchers (GV) through the Amex Reward Multiplier.

Is it still worth buying from the Reward Multiplier?

Let's break it down with an example:

• Buying a GV of ₹1000: It will now cost ₹1008.85.
• Redemption of Reward Points (RP) using Amazon GV from the Gold Collection: The value of 1 RP is ₹0.33.

Gold Charge Card:

• YES - You pay an extra ₹8.85 for rewards worth ₹26.67 (5x rewards = 80 extra points for ₹1000 GV = ₹26.67).

MRCC:

• NO - You pay an extra ₹8.85 for rewards worth ₹6.67 (2x rewards = 20 extra points for ₹1000 GV = ₹6.67).

 

[NABNAB is verified member.]

If you don't have any other option, then this one is still good. (Anything > 0 is good 😉)

 

[sjmajumder]

If you don't have any other option, then this one is still good. (Anything > 0 is good 😉)

You can always buy directly from Amazon or even from Gyftr directly without paying any convenience fee and for MRCC that is what is recommended.

 

[drsel]

I think 0.885% is quite insignificant compared to 3.54% of HDFC for Amazon pay vouchers

 

[malavkarkar]

0.885% convenience fee is fine and it's minuscule compared to rewards. What we need is ₹5k and ₹10k vouchers now.

 

[AlgoTrader]

You can always buy directly from Amazon or even from Gyftr directly without paying any convenience fee and for MRCC that is what is recommended.

exactly, i stopeed using mrcc in reward multiplier

 

[Garry]

One should calculate with bonus points for actual results.

for MRCC
1500 x 4 = 6000
Charges for this is 53.10
2X Points = 240 + Bonus Points 1000 = 1240
Value as per Gold Collection = 1240 * 0.33 = 409.20
Net Gain = 409.20 - 53.10 = 356.10 (avg 5.9%)

for Gold
1000 x 6 = 6000
Charges for this is 53.10
5X Points = 600 + Bonus Points 1000 = 1600
Value as per Gold Collection = 1600 * 0.33 = 528
Net Gain = 528 - 53.10 = 474.90 (avg 7.9%)

 

[jk51]

Recently, a convenience fee of 0.75% + GST (effectively 0.885%) has been introduced for purchasing Amazon Pay Gift Vouchers (GV) through the Amex Reward Multiplier.

Is it still worth buying from the Reward Multiplier?

Let's break it down with an example:

• Buying a GV of ₹1000: It will now cost ₹1008.85.
• Redemption of Reward Points (RP) using Amazon GV from the Gold Collection: The value of 1 RP is ₹0.33.

Gold Charge Card:

• YES - You pay an extra ₹8.85 for rewards worth ₹26.67 (5x rewards = 80 extra points for ₹1000 GV = ₹26.67).

MRCC:

• NO - You pay an extra ₹8.85 for rewards worth ₹6.67 (2x rewards = 20 extra points for ₹1000 GV = ₹6.67).

View attachment 84901

In my case MRCC is more rewarding than Gold Charge post fees since its companion card. Though shall keep on Gold Charge as well.

 

[NABNAB is verified member.]

You can always buy directly from Amazon or even from Gyftr directly without paying any convenience fee and for MRCC that is what is recommended.

Directly from Amazon,
There is a limit to purchasing through CC. I would rather use SBI CB/Millenia/Other CC.

Amazon and Gyftr, One will lose 2x points.

1K bonus points gonna come either way. And must be accounted for in the rewards calculation.

 

[sjmajumder]

I just bought 20K Amazon Pay GV from Amazon itself with MRCC and 6K with Gold Charge from rewards multiplier.

 

[sjmajumder]

One should calculate with bonus points for actual results.

Absolutely NOT. Bonus points you will get irrespective of whether you buy from rewards multiplier or not.

for MRCC
1500 x 4 = 6000
Charges for this is 53.10
2X Points = 240 + Bonus Points 1000 = 1240
Value as per Gold Collection = 1240 * 0.33 = 409.20
Net Gain = 409.20 - 53.10 = 356.10 (avg 5.9%)

Net gain when bought from other places: (120 + 1000) points = Rs. (1120 * 0.33) = Rs. 369.60 which is higher than when purchased from reward multiplier.

 

[AlgoTrader]

Absolutely NOT. Bonus points you will get irrespective of whether you buy from rewards multiplier or not.

Net gain when bought from other places: (120 + 1000) points = Rs. (1120 * 0.33) = Rs. 369.60 which is higher than when purchased from reward multiplier.

this is 100% right

 

[Garry]

Absolutely NOT. Bonus points you will get irrespective of whether you buy from rewards multiplier or not.

Net gain when bought from other places: (120 + 1000) points = Rs. (1120 * 0.33) = Rs. 369.60 which is higher than when purchased from reward multiplier.

I admit here my mistake in understanding the calculations. Thanks for correcting me. 👍