Rumor: American Express To Compete With Chase Sapphire Reserve, As Early As Q4

I’ll preface this by saying that this is nothing more than a rumor at this stage, I believe it to be true but can’t go into specifics and I’m less sure of this than I was of the Chase 5/24 rule and Chase Sapphire Reserve leaks. Apparently they want to introduce new product(s) to compete with the Chase Sapphire Reserve and plan to introduce these as early as Q4 of 2016. Some people have been throwing around a date of October 5th, but I suspect that will be for a different promotion/offering.

The big thing I got out of what I’ve heard is that they want to compete with the one size fits all nature of the Reserve card. In that it offers travel benefits, premium protections/insurance, category bonuses and cash back.

[Read: Premium Cards Compared: Chase Sapphire Reserve, American Express Platinum & Citi Prestige]

I’m interested to see if American Express launch a new card or they make adjustments to the American Express Platinum card they already offer. I could see the value in launching a new card, as that would put less pressure on the Platinum lounge network they offer. Personally I’m very much hoping for new cards, because that means I’ll be able to get the sign up bonus again (as American Express is once per lifetime).

Feel free to speculate in the comments, but for now I’m filing this one away as ‘wait and see’.

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Wes
Wes (@guest_302107)
October 1, 2016 08:45

Thanks for sharing the possibility of a new AMX Plat card arriving soon Will. Like you, we also covet another MR bonus.

Like both our CSR (tvl credit, 3x tvl & dining and 100K bonus) and our Schwab AMX-P not only for annual Schwab statement credit, but more so for the cruise bennies ($300 Ship Board Credit, bottle of fine wine) when we pay for the cruise (s) with our AMX-P. (e.g. we have received $600 SBC so far this year and will get that much in 2017).

Jeremy
Jeremy (@guest_301959)
September 30, 2016 23:53

I just got off the phone with an AMEX representative. He said the change on the Platinum card is that it will have a hard billing date like other cards….Hope this rumor is more than just that.

jediwho
jediwho (@guest_301314)
September 29, 2016 16:25

I posted this on a FT thread as well, so this is kind of a double:

A few months ago as a Platinum card holder, I received a long survey (more than 15 minutes to complete) from Amex for a premium card. My initial impressions from the survey were that it was very specific with Amex wanting to know if I was willing to pay separately for all the perks.
So, for instance, a high end credit card for free (or charge a massive AF and then give all of it in rebate like the Australian Amex Explorer), but with 1.5x rewards, some category rewards and traditional Amex perks. They could create three or four baskets that we could add for say $75 each.

Again, just as an example, you could have basket 1 that gave you Priority Pass and Centurion lounge access, basket 2 that offered 12 GoGo passes and unlimited Primary car rental; basket 3 with FHR and status with various hotels and car rental companies, and basket 4 with travel insurance that is better than Prestige.

At first I thought Amex was thinking about making changes to Platinum. After the introduction of Chase Reserve and also the fact that there are now nine (Platinum, Prestige, Chase Reserve, Ritz Carlton, City Crystal, Delta Reserve, United Club, Citi AA Exec, Amex Centurion) premium cards with overlapping perks and benefits, many may not want many of the benefits.

For someone like me, I would not care for any of the four baskets but would still like a premium card that offers better Membership Rewards earnings card.

If I had to guess, we could see a combo of a high AF card (say $400), with $400 rebate for booking hotel or airline through Amex Travel, 1x rewards, 50% bonus for 30 transactions a month, two 3x category bonus of your choosing (which would be 3x with 50% bonus), and options of perks that you could pick and select with $50 to $75 AF. Would be a deadly card and that would easily steel the thunder from Reserve.

NinjaX
NinjaX (@guest_301330)
September 29, 2016 17:08

yea. I saw your comment and also others making similar comments about Amex Plat refresh vs a brand new CC which I totally agree with. If Amex is smart, they will BEEF UP the plat, utilize all plat infrastructure and blow CSR out of the water. No new CC means no churning and thats good for Amex since they are clearing that crap out anyway. I know, I am not the majority, but I wouldnt mind $1k AF for something ridiculous. Imagine Amex combining the premium perks of all 9 CC you mentioned. Holy Crap.

Another Dude
Another Dude (@guest_301762)
September 30, 2016 13:07

There is a cost aspect to “blowing CSR out of the water” and is not as easy as you may think. AXP has shareholders and a bottom line to manage. They cannot increase the value prop dramatically because it could be dilutive to EPS. Chase mainly has a lend based model, so they can give away most of their interchange fees (the swipe) on rewards. AXP however is majority swipe so it makes it harder to increase earn rates significantly on the card.

jediwho
jediwho (@guest_301900)
September 30, 2016 19:51

I think the killer feature here would be the modular design where Amex card holders can add benefits for a fixed annual fee, pick their category bonus, etc. Agreed, you can’t blow Chase out of water and a big part is how large Chase is today. But Amex is very focused on credit card business and if they can’t innovate, I am not sure who can.

John
John (@guest_300701)
September 28, 2016 19:14

I’m one of the many who ditched Amex Platinum for CSR, and the main thing I’ll miss is the concierge. I haven’t used Visa Infinite concierge yet, but I have absolutely no complaints about the Platinum’s service. They’ve been able to talk busy restaurants into getting me the reservation time I’ve wanted, even when the place is booked online. As someone who has yet to master the fine art of planning ahead, this was a godsend.

NinjaX
NinjaX (@guest_301331)
September 29, 2016 17:10

i mean you have your reasons and preferences so thats fine, but I personally think its a mistake to ditch the Amex for the CSR. based on the user, its not the same IMHO…

John
John (@guest_301951)
September 30, 2016 22:18

For me and most people like me, the CSR does everything the Platinum did except hotel status & Centurion lounge access, both of which I never used anyway.

CaliSteve
CaliSteve (@guest_300527)
September 28, 2016 12:22

I predict a new card with the exact design as the Amex Explorer Card that was launched in Australia.

NinjaX
NinjaX (@guest_300670)
September 28, 2016 17:37

amex can definitely go many directions here. have you seen the INTERNATIONAL Amex versions?! OMFG dude. you cant even recognize it. $1200+ AF man. totally different perks. ridic.

Ian
Ian (@guest_300990)
September 29, 2016 06:24

Amex Platinum Card AU, AF $1200 aud (about $920 usd today). Amex The Explorer card AU AF $395 aud. Travel credit sucks; you have to use Amex Travel Services, and a single use, and it’s given to you on your anniversary as cardmember.

Runtheroad
Runtheroad (@guest_300487)
September 28, 2016 11:26

Obviously the Platinum already plays in the same space as the CSR, at least in theory. And a refresh of the Platinum could certainly make sense. However, I wonder if Amex isn’t looking at launching a premium credit card, instead of a charge card like the Platinum. Right now Amex lacks a premium credit card that isn’t co-branded. The potential to also earn interest off a new product may allow Amex to up the benefits from what they currently offer for the Platinum.

Mike
Mike (@guest_300445)
September 28, 2016 09:53

Amex could buff the bonus on the Everyday Preferred, and reduce or remove the 30 transaction threshold for 1.5x rewards, to generate instant buzz. Its already a great card, and the grocery/gas rewards make it a great 2nd “top of wallet” card alongside a CSR or Prestige.

They could also look at creating a “Blue Sky Preferred” to plug the gap of a midtier travel card.

They’ve got an uphill battle though, the younger audience that made the CSR explode is very aware that Amex is less accepted, and probably has no interest in charge cards. They could up the earn rates and travel redemptions on the Platinum, and come out with a premium credit version with similar features, but everyone will still want a good backup visa/MasterCard.

Ryan
Ryan (@guest_300444)
September 28, 2016 09:51

I avoid annual fees like the plague, so this effort to court people who are willing to pay $300-400 per year for ANY card seems crazy to me.

Maybe it’s cynical, but I’d rather get approved, hit the minimum spend, use my travel reimbursement, collect my rewards and GTFO.

Maybe I’m unique in this way, but I don’t balance the benefits versus annual fee- I want it all and then I wangt to close the card before I have to pay back $300-400.

And my credit score is still in the 780s.

Tiger
Tiger (@guest_300511)
September 28, 2016 12:03

You’re not unique to the churning crowd, but that’s not necessarily the crowd they’re aiming for. They want profitable customers long term.

Matt Katakis
Matt Katakis (@guest_300573)
September 28, 2016 13:49

I’m largely similar to you, with one exception. I tend to find that many of the hotel cards are worth keeping. The annual fees are often reasonable and they are usually good for a night somewhere that is worth more than the fee paid (IHG, Wyndham, Hyatt etc).

Mike
Mike (@guest_300716)
September 28, 2016 19:51

Avoiding fees entirely can end up being penny wise and pound foolish. You’re certainly right to be cautious, but as with most things doing the math can show you when it’s worth it.

For example, Amex has the free Blue Cash, and the $95 AF Blue Cash Preferred, but if you spend more than $3200 a year on groceries, you should pay the fee, because your cashback minus the fee is higher after that point than the free version. The Everyday and Everyday Preferred have a similar relationship for Membership Rewards instead of straight cashback.

That’s why the CSR has people so excited, after $6000 a year of travel/dining spend, it will net you more cash back (on chase’s 1.5 cent travel redemption) than the free Citi double cash would have. And that’s by itself, it can also convert Freedom Ultimate Rewards to Sapphire/Ink Ultimate Rewards, creating more return on other spending categories.

On the other hand, you should always break down the reward rate. The Amex Platinum only has 1x rewards, so it never “pays for itself” that way. Some people are happy to pay for the suite of membership/status it provides, and some people feel that the steady stream of discount or cashback Amex Offers makes up the difference. I’m wary of that, so it’s not a high priority to get, unless they target me with a 100k offer.

Charlie
Charlie (@guest_300376)
September 28, 2016 06:24

It would be great but I would not be surprised if it was a refresh or reboot of the Platinum card. This way, it stays the same product and Amex can make the bonus as high as they want without having to worry about the churners. It also gives them a way to get people to upgrade to the card and pay the annual fee without the sign-up bonus. After all, plenty of people were willing to do that with the CSR so it might work with Amex as long as the benefits are alluring enough.
Either way, I am looking forward to seeing what it might be! Thanks for mentioning it!

NinjaX
NinjaX (@guest_300669)
September 28, 2016 17:35

exactly…

jf
jf (@guest_300316)
September 28, 2016 02:55

solution, bring back Zync w/ Packs and a phat bonus, with a little tweaking. Problem solved. Also add in charles schwab esque 1.25cpp cash out functionality.

DGS
DGS (@guest_303461)
October 4, 2016 19:58
  jf

I like the way you think! I had a Zync Card with several packs…until they were axed. I then upgraded it to a PRG. Id like to see Amex launch a revolver with all the benefits of Platinum and the rewards structure of PRG.