American Express (AMEX) won't!
For the last 13 years, Edie and I have used an AMEX Starwood Preferred Guest credit card for the bulk of the credit card purchases we make, having charged a minimum of $25,000 per year over that time, and within the last two years charging in excess of $48,000 per year. (In case you were wondering, we literally charge everything.)
When I first signed on for the card in 1995, there were no annual membership fees, but that changed around the 3rd or 4th year, when AMEX started charging an annual fee.
I have never been a fan of paying to use a credit card, especially since the credit card company receives a fee (approximately 1% to 2% of the charges) from the merchant every time I use that card, and have always refused to pay any such fees.
So every year, when the annual membership fee appeared on my statement, I always called AMEX customer service, and they have always given me a "good will credit" for the fee. That is up until now.
This time when I called customer service, and subsequently even emailed them, they refused to grant me that same "good will credit" they have granted me every year since implementing the annual fee.
So I was hoping some astute businessman, MBA graduate [oh wait, I have an MBA], or at least someone with more business savvy than me, can explain the logic in fore going at least $400/year [and likely a LOT more] in merchant fees, to try and squeeze an extra $45/year out of me, just for the privilege of carrying the card, especially since now AMEX will get neither the merchant fees, from my purchases, nor my annual membership fee?
Do they think their credit card is the next best thing to sliced bread and Google? Do they think they have no competitors? Or maybe I'm living in an alternative universe, where up is down, and to make money you have to lose it.
Admittedly I did like the benefits received from the use of the AMEX Starwood Preferred Guest credit card, but I refuse to compromise on my principles.
Besides, I know I will soon be receiving an application in the mail to sign up for that same card, which will include bonus points and waive the membership fee for the first year. I know this because I've shredded many of those applications in the past.
I may just reapply the next time I receive one.
In the mean time, I canceled the AMEX card, and am now using my Citibank and Capital One cards almost exclusively.
For the last 13 years, Edie and I have used an AMEX Starwood Preferred Guest credit card for the bulk of the credit card purchases we make, having charged a minimum of $25,000 per year over that time, and within the last two years charging in excess of $48,000 per year. (In case you were wondering, we literally charge everything.)
When I first signed on for the card in 1995, there were no annual membership fees, but that changed around the 3rd or 4th year, when AMEX started charging an annual fee.
I have never been a fan of paying to use a credit card, especially since the credit card company receives a fee (approximately 1% to 2% of the charges) from the merchant every time I use that card, and have always refused to pay any such fees.
So every year, when the annual membership fee appeared on my statement, I always called AMEX customer service, and they have always given me a "good will credit" for the fee. That is up until now.
This time when I called customer service, and subsequently even emailed them, they refused to grant me that same "good will credit" they have granted me every year since implementing the annual fee.
So I was hoping some astute businessman, MBA graduate [oh wait, I have an MBA], or at least someone with more business savvy than me, can explain the logic in fore going at least $400/year [and likely a LOT more] in merchant fees, to try and squeeze an extra $45/year out of me, just for the privilege of carrying the card, especially since now AMEX will get neither the merchant fees, from my purchases, nor my annual membership fee?
Do they think their credit card is the next best thing to sliced bread and Google? Do they think they have no competitors? Or maybe I'm living in an alternative universe, where up is down, and to make money you have to lose it.
Admittedly I did like the benefits received from the use of the AMEX Starwood Preferred Guest credit card, but I refuse to compromise on my principles.
Besides, I know I will soon be receiving an application in the mail to sign up for that same card, which will include bonus points and waive the membership fee for the first year. I know this because I've shredded many of those applications in the past.
I may just reapply the next time I receive one.
In the mean time, I canceled the AMEX card, and am now using my Citibank and Capital One cards almost exclusively.
Comments
In any case I never thought AMEX was competitive. You can get free cards now that pay 3% cash back on gas, utilities, groceries and 1% on everything else. I doubt the Sheraton deal you had beats that.
Still I did get some great deals at some very nice Starwood hotels.
But now with the price of gas and everything else going up, and the hassles traveling by air, we plan on staying closer to home when we go on vacation, so we really don't need the use of that card anymore.
It was probably a blessing in disguise.