American Express cards explained – Times Money Mentor

After entering the UK market in the late 19th century, American Express now offers a string of different credit cards. So which one is best for you?

If you’re looking for a way to maximise your spending, American Express offers some of the best credit cards on the market.

While its offers aren’t tailored towards those looking to improve their credit score or shift hefty debt, its cards reward their spenders with cashback or points on exclusive programmes.

In fact, even if you already own one of its cards then there may be perks you’re not utilising.

Our article explains:                                                     

Read more: The best rewards credit cards

*This article contains affiliate links which may earn us revenue

What is American Express?

American Express, whose name is frequently shortened to Amex, is a credit card provider that operates in the UK. Founded in the USA, it now has a global presence, offering its services in almost every country on Earth.

In the UK, it offers a variety of credit cards for both individuals and businesses. But unlike other banks and building societies, there won’t be a card for everyone.

For everyday consumers, Amex offers a variety of rewards cards – some of which include annual fees. It doesn’t offer credit builder cards for those with impaired credit scores or 0% balance transfer cards for those moving debt.

Is American Express widely accepted?

American Express is slightly different from other credit card providers because it processes your transactions itself. Other banks and building societies use payment processors such as Visa or Mastercard, while Amex uses its own network.

This means it can charge its own fees to process its transactions, which can be higher than other options on the market. Large retailers typically absorb these higher costs because it makes a marginal difference to their bottom line, but for small businesses these costs can eat into their profits.

This is why some merchants won’t accept American Express.

However, when the Times Money Mentor reached out to Amex it said the number of small businesses using their cards is increasing.

“We have more small businesses on our network than ever before – 20% more than last year,” American Express said in a statement.

They also said smaller merchants are now charged a single rate with no set-up or hidden costs. This differs from larger traders, where their fees depend on the industry, charge volumes, and other factors.

Is American Express worth it?

An American Express card can represent great value for money – if used correctly.

For example, the American Express The Platinum Card® charges an annual fee of £650 – the most of any card on the market. So if you’re not making at least this back in rewards there are better options on the market (more information on this card can be found below).

If you believe you’re currently underutilising your American Express card, then we’ve also listed various ways you can earn more money.

What is the best American Express card?

The best American Express card for you will depend on a variety of personal circumstances. In addition to your income and how regularly you shop, you’ll also need to consider if you prioritise free airfares over cashback, whether you want an annual fee, and where you’ll be spending your money.

Below we’ve sorted some of these cards into the following categories: 

For those who travel

If you’re a frequent British Airways traveller, then the British Airways American Express Premium Plus Card could be the option for you. However, don’t use this card abroad because it carries a hefty 2.99% foreign transaction fee.

Instead, if you use it to book your flights and accommodation in pounds you could earn a decent number of Avios points. These are explained in more detail in our guide, but in essence it’s a British Airways loyalty system which you can use for discounted flights and accommodation.

The British Airways American Express Premium Plus Card comes with:

• 25,000 Avios points upon sign up, providing you spend at least £3,000 in the first three months of card membership. This can get you a return journey to Rome via economy class.
• Every purchase you make through British Airways earns three Avios points per pound spent, other purchases earn one and a half Avios points per pound spent..
• Earn 9,000 Avios points for inviting a friend to join your programme. Plus, if you spend £10,000 over the year you’ll earn yourself a companion voucher in any cabin. If you’re travelling by yourself then you can knock 50% off the Avios price paid for your flight. It’s worth noting that this threshold is increasing to £15,000 from November

This card does come with a £300 annual fee, which is one of Amex’s more expensive charges. So if you’re not keen on forking this out each year you could choose the British Airways American Express Credit Card. It doesn’t come with an annual fee, but also doesn’t include the same range of incentives.

For example, upon signing up and spending £1,000 in the first three months of card membership you’ll earn 5,000 Avios welcome points. There isn’t an added bonus for using the card with British Airways and you can only earn 4,000 Avios points for referring a friend.

Both credit cards include Global Assist, which provides help in medical or legal emergencies abroad.

Other suitable cards to use while travelling includes the Platinum Card, which is listed below.

Check eligibility and apply for the British Airways American Express Credit Card

For those wanting membership rewards

Amex’s flagship cards include membership points as one of its main perks. The Platinum Card, for example, is currently running an offer where new cardholders can earn 40,000 points as a welcome bonus.

Membership points can be redeemed for a variety of uses, including fine dining experiences and travel experiences. Depending on your experience, 30,000 membership points are worth between £120 and £150. With this card you’ll earn one point for every pound spent, with double points on Amex travel. Meanwhile, if you refer a friend you can earn up to 12,000 points.

The card also comes with:

• Complimentary lounge access – When you travel abroad you’ll have access to over 1,400 lounges across 140 different countries.
• Worldwide travel insurance – Also includes cover for your partner and dependent children.
• Cashback on dining experiences – Receive up to £150 in the UK and £150 abroad in statement credit at over 1,400 restaurants worldwide.
• Harvey Nichols Lifestyle Credit – Enrol and enjoy up to £100 in statement credits at Harvey Nichols, the department store.
• Hotel benefit – Enjoy a complimentary room upgrade or late room checkout where possible at participating hotels.
• Exclusive events – Gain access toexclusive events with your metal card.This includes concerts or sporting events. 

If you’re put off by the £650 annual charge then consider the American Express Preferred Rewards Gold Credit Card instead. While it comes with no annual fees for the first year of use, on the second year you’ll incur a £195 charge.

Just like the Platinum card you’ll earn a membership point for every pound you spend. This increases if you spend money on travel or make a purchase directly through an airline. However, it only includes four lounge passes per year, a smaller bonus for referring a friend, and a smaller signing up bonus of 25,000 points.

Check eligibility and apply for the American Express Preferred Rewards Gold Credit Card

For those wanting cashback

If you don’t want membership points and prefer hard cashback to spend at your discretion you could take out the Cashback Credit Card.

The option comes with 5% cashback for your first three months, capping the total amount you can earn at £125. After that you’ll earn 0.75% on spend up to £10,000 and 1.25% on spend above £10,000.

For a limited time, American Express is waivering the card’s £25 annual fee for one year. To claim the offer, you’ll need to apply before 2 July and as a added bonus you’ll receive £25 in added cashback.

If you don’t end up taking the offer, to earn back the £25 annual fee you need to spend £500 in your first three months. If you can’t take advantage of this rate, you’ll need to spend just under £3,500 across the year or around £290 a month.

The card also comes with access to exclusive events through American Express and successfully referring your friend will earn you £30.

Again, if you prefer a fee free offer instead then there’s the Cashback Everyday Credit Card. You’ll also receive 5% cashback in your first three months, but this is limited to £100. You’ll then receive 0.5% cashback on your purchases up to £10,000 and 1% cashback on anything above this amount.

This card is also running a limited time offer where you can earn yourself an added £10 cashback bonus.

Check eligibility and apply for the Platinum Cashback Everyday Credit Card

For those wanting retail rewards

If you regularly shop at Sainsbury’s or Argos then the Nectar Credit Card can boost your points balance. For every pound you spend on the card you’ll receive two nectar points, and if you use your credit card at any of Nectar’s partners you’ll receive at least three points per pound. One Nectar point is worth roughly half a pence.

But perhaps the biggest incentive to take out this card is the bonus 20,000 bonus Nectar points you’ll earn if you spend £2,000 in your first three months of card membership. This is worth roughly £100.

If you successfully invite a friend you’ll earn 5,000 bonus Nectar points and the card also comes with Nectar experiences.

For those wanting business advantages

If you’re a small business doing the bulk of your ordering through Amazon, then the Amazon Business American Express Card could save you money. For all purchases you make, you’ll earn 0.5% Amazon Rewards points which can be used on eligible purchases through the ecommerce provider. Meanwhile, purchases made directly through Amazon will earn 2% cashback.

If you don’t wish to earn Amazon Rewards points, then you can extend your payment terms by up to 90 days. This can help improve cashflow when needed. The card does come with a £50 fee, but this is waived if you spend more than £8,000 a year.

Of course, this card is only available to Business Prime members, and if you aren’t subscribed you can still make use of similar benefits under the Amazon Business American Express Card. It too comes with a £50 but is free in your first year of use. Your cashback will be limited to 1.5% Amazon Rewards on your purchases through Amazon and 0.5% Amazon Rewards on purchases elsewhere.

Read more: What is Amazon Prime and is it worth it?

How to make the most out of your Amex card

If you already hold an American Express card there could be ways to better use the perks available to you.

As you may have noticed in the highlighted offers above, all Amex cards offer rewards for successfully referring a friend. Depending on the card you hold, this can be as much as £150 each year or a handy boost in membership points.

Another way to earn more from Amex is to sign up to its offers. This gives you cashback at selected retailers and is a perk other cards, like Monzo, also use. So while it isn’t revolutionary it still provides an opportunity to save money, especially if you’re making a large purchase. Retailers such as Samsung, Apple, and Pizza Express can be found on the offers tab. All offers are unique and based on your spending habits.

FAQs

How to use my Amex points

The easiest way to use your points is to download the app or log into your account online. From here you can choose how to redeem your points or transfer them to someone else.

Where is the security code on an American Express card?

Unlike other cards, you can normally find your security code (or CVV code) on the front of your American Express card.

Where is Amex accepted?

Many of the country’s largest retailers accept American Express. These include, but aren’t limited to:

• Amazon
• McDonald’s
• Netflix
• Spotify
• BT
• Apple