American Express Credit Cards Review

We Explain the Fees, Interest Rates, Membership Rewards Points, Pros and Cons

Updated 17 October 2019
American Express offers a number of Airpoints and travel-related rewards credit cards. Unlike VISA and Mastercard, which are offered through banks and finance companies like GEM and FlexiGroup, American Express provides cards directly. This means your customer service, billing and disputes will be direct with American Express and not a bank or third party. 

In this guide, we look at pros and cons of having an American Express credit card, as well as outline what we consider to be the best options offered. Our guide covers:
Read this First
  1. Our guide has been written to appeal to appeal to anyone looking for a good value credit card that offers rewards.
  2. If you are looking for a charge card, a 'no limit' credit card, and/or something that offers a travel desk and concierge service, American Express offers a Platinum card with a $1,000+ annual fee. We've not reviewed this, as we believe the market for such a card isn't significant.
  3. Our guide is informational only, and does not constitute financial advice. 
  4. As stated above, American Express credit cards are provided directly by American Express. This means cards are not available through banks or other finance companies.

American Express Credit Card Pros and Cons

Pros
  1. New Zealand's Highest Airpoints Dollar earning rate - $59 for 1 Airpoints Dollar outperforms all other Air New Zealand credit cards.
  2. Customer Service – With American Express you have a direct line, but if you use Visa and Mastercard you’ll have to deal with your bank. Most New Zealand banks use a multi-option call centre for credit card help with standard office hours. Any troublesome issues may be ‘referred’ to Visa or Mastercard for ‘review’ and 'decision'. American Express operates specific 0800 hotlines which are open 24/7 and makes decisions directly.
  3. Favourable Customer Dispute Terms – if you experience fraud or wish to question a transaction, American Express will actively fight in your corner.
  4. Generous flight rewards with partners – earn up to 3% back in free flights if you spend big
  5. Travel perks – some cards offer free flights, travel insurance and sign-up bonuses
  6. Cards are increasingly accepted at major New Zealand retailers – You can use your card at Countdown, New World, PAK'nSAVE and other supermarkets. Other retailers include most petrol stations and airline websites. 
  7. American Express Membership Points - Reasonable value from the Qantas Frequent Flyer program partnership, among others
  8. Excellent benefits for the American Express Airpoints Platinum card – The $195 annual card fee comes with four lounge passes (two in Auckland Airport, two for either Sydney or Melbourne). It also offers the highest Airpoints earning ratio; 1 status point per $250 spent. Add on free travel insurance, and it’s arguably a useful card to have.
  9. A No-Fee Option with Travel Benefits – The American Express Airpoints Card offers 1 Airpoints Dollar for every $100 spent and a signup bonus 

Cons
  1. Many non-chain retailers don’t accept it – unlike Mastercard and Visa, which is primarily due to the high merchant fee Amex charges and favourable cardmember terms when disputes are raised.
  2. Membership fees for the Charge Card can be high (unless you’re a big spender) – most cards are competitively priced with their Mastercard and VISA counterparts. However, the American Express Platinum (Charge Card) has an eye-watering high $1,250 annual fee.
  3. Membership points partnerships – if you don’t spend at least $20,000 a year, a points-earning card would struggle to offer value.

American Express Membership Rewards Points Review

Membership Rewards is American Express' awards program. You earn different numbers of points depending on where you spend. These points can be redeemed for vouchers from supermarkets, travel agents and online. You can also transfer the points to a number of frequent flyer programs.

Currently, the earning rate is:
  • 3 Membership Rewards points per dollar spent at major supermarkets - Countdown, Countdown Online, Farro Fresh, FreshChoice, New World, Nosh, PAK'nSAVE and SuperValue
  • 2 Membership Rewards points per dollar spent at major petrol stations - BP, Caltex, GAS (Gasoline Alley Services), Gull, Mobil, Shell and Z
  • 1 Membership Rewards point per dollar spent spend on other purchases

To understand the 'reward rate' of spending is, let's look at two examples:
1. $10,000 spent at a Supermarket Partners = 30,000 Membership Reward Points converts to:
  • $225 Webjet Voucher (2.25% reward value)
  • $225 HelloWorld Voucher (2.25% reward value)
  • $187.50 Flight Centre Voucher (1.88% reward value)
  • $187.50 New World Voucher (1.88% reward value)
  • 171 Air New Zealand Airpoints Dollars (1.71% reward value)

2. $8,000 spent at Petrol Station Partners = 16,000 Membership Reward Points converts to:
  • $50 Bunnings Gift Card (0.63% reward value)
  • $50 New World Voucher (0.63% reward value)
  • 91 Air New Zealand Airpoints Dollars (1.14% reward value)

Membership Rewards - Our Thoughts:
  • If you spend $200 to $300 a week on groceries and petrol, the rewards are significant, and the flexibility of reward options makes the points useful.
  • Our view is that it's one of the best reward schemes available, when compared to the reward schemes offered by a number of New Zealand banks.
  • However, if you are looking for an Airpoints earning card, the American Express Airpoints Platinum Card ($59 spend = 1 Airpoints Dollar - 1.70% reward rate) offers better earning than Membership Rewards. This is because only partner supermarkets offer generous Membership Reward points, unlike an Airpoints credit card which doesn't discriminate.
  • Any American Express Airpoints-branded credit card will not earn Membership Rewards Points - instead, you'll earn Airpoints directly.  
  • Currently, only the American Express Platinum Edge Credit Card and the American Express Platinum Card (a Charge Card) offer Membership Reward Points.

Best American Express Credit Cards

From the five American Express credit cards offered, we've shortlisted three that stand out. 

Best General Rewards: The American Express Platinum Edge Credit Card

Basics:
Annual Fee: $149 
Airpoints or Membership Rewards? Membership Rewards 
Annual percentage interest rate: 2.99% p.a. for the first 6 months reverting to 19.95% p.a. thereafter
Interest Free Period: up to 55 days
Bonus Offer: 20,000 Membership Rewards Bonus Points

Benefits:
  • Complimentary domestic return flight each year (seat + bag)
  • Earn up to 3 Membership Rewards points per dollar spent
  • 175 Membership Rewards Points = $1 Airpoints Dollars
  • One return, direct flight every year within New Zealand (for example, Auckland to Queenstown, Wellington to Dunedin etc)
  • Complimentary New Zealand overseas travel insurance (as long as you use the credit card when paying for one item of travel).
  • Complimentary Mobile phone screen insurance (if you used your AMEX to pay for the phone, up to repair costs of $500) - see the full details here.
  • Bonus Membership Reward Points per $1 spent: 3 per $1 spent at major supermarkets), 2 per $1 spent at major petrol stations. 

Learn more or apply

Best Card for Airpoints: The American Express Airpoints Platinum Card

Basics:
​Annual Fee: $195
Airpoints or Membership Rewards? Airpoints 
Annual percentage interest rate: 19.95% p.a.
Interest Free Period: up to 55 days
Bonus Offer: 200 Airpoints if you spend $1,500 within the first 3 months

​Benefits include:
  • Every $59 you spend = 1 Airpoints Dollar, and $250 spend = 1 Status Point
  • Complimentary Domestic and International Travel Insurance
  • Four lounge passes per year (two in Auckland Airport, two for either Sydney or Melbourne)
  • ​Complimentary Mobile phone screen insurance (if you used your AMEX to pay for the phone, up to repair costs of $500) - see the full details here.

Learn more or apply

Best Free Card for Airpoints: The American Express Airpoints Card

Basics:
​Annual Fee: $0
Airpoints or Membership Rewards? Airpoints 
Annual percentage interest rate: 19.95% p.a.
Interest Free Period: up to 55 days
Bonus Offer: 50 Airpoints if you spend $750 within the first 3 months

​Benefits include:
  • The only No Fee option to earn Airpoints Dollars offered in New Zealand
  • A reasonable earning rate of 1 Airpoint per $100 spent
  • No supplementary card fee

Learn more or apply

Applying for an American Express Credit Card

To apply for any American Express credit card, you will need to:
  1. Be over 18 years of age.
  2. Have a good credit history.
  3. Be a permanent resident or citizen of New Zealand.
  4. Meet the minimum income criteria for your chosen Card.
  5. If you are self-employed, you will need to have been trading for at least 18 months, or 12 months if you have an existing American Express issued Card.

You will need to provide:
  1. A copy of your New Zealand driver’s licence (if you hold one)
  2. Personal information, including your current address details.
  3. A current email address and a mobile or landline number.
  4. Financial Information including your annual income, household income (if married/de facto), monthly living expenses, employment details, superannuation (if retired), or other sources of income.
  5. Details about any other credit cards and loans you have and their balances.

Final steps:
  1. American Express will perform a credit check to assess your financial history
  2. After that, American Express will assess your credit card application and provide a response in between 5 and 10 working days from when you submit your application.

Credit Cards vs Charge Cards - What's the Difference?

  • Our review of American Express credit cards only looks at credit cards - the charge card offered by American Express has an annual fee > $1,000 which we believe makes it an unrealistic option for most New Zealanders.
  • Charge cards look and behave like a credit card, but it doesn’t charge interest if you pay the balance late. Instead, a late fee is charged, which for the American Express Charge Card is currently $20 or 3.25% of the balance, whichever is the greater.
  • This means if you spend $5,000 and don’t make the repayment by the due date, you’ll be charged a whopping $162.50, which will be added to the balance. You’ll continue to pay the late fee every month until the balance is cleared.
  • Charge cards are designed to be paid off immediately, much like store cards from Farmers, and the Q Card are. Charge cards don’t offer 0% interest balance transfers or other low-rate promotions. In New Zealand, the only option is the American Express Platinum Card, which has a $1,250 annual fee.

5 Must-Know American Express Credit Card Facts

​Selecting a Membership Rewards Points or Airpoints American Express needs consideration

  • If you fly Air New Zealand at least once a year and will spend at least $1,000 a month on the card, the American Express Airpoints Platinum Card pays for itself. You’ll get benefits like free travel insurance and lounge passes thrown in too.
  • If you don’t fly that often and don’t spend a regular amount on a credit card, the American Express Airpoints Card still rewards you. Best of all, it doesn’t charge an annual fee.
  • If you do spend regularly, the American Express Platinum Edge Credit Card is attractive. You're not fixed to Air New Zealand, and the annual fee is paid for if you redeem the annual return domestic flight benefit.

Our view:
  1. For anyone looking for an awards credit card, the American Express Platinum Edge Credit Card or American Express Airpoints Platinum Card have their own merits.
  2. As an example, spending an average of $2,500 per month will earn you over 500 Airpoints dollars with the American Express Airpoints Platinum Card.
  3. The rewards offered by the American Express Platinum Edge Credit Card will depend on where you spend (see point 2. below).

Where you spend makes a big difference to reward earning for Membership Rewards Points cards

Important: Your ability to earn rewards will also depend on where you spend. For example, supermarket spending earns 300% more points than other retailers with a Membership Rewards card. In contrast, there is no discrimination with an Airpoints card as $59 = 1 Airpoints dollar regardless of where you make the purchase.​

The 'Low Rate' credit card option won't earn any points or rewards

Low-interest rate credit cards are designed to appeal to those who may not be able to pay the balances regularly. If you are confident in paying off credit card bills every month, low rate cards may not be for you. The American Express Platinum Edge Credit Card or American Express Airpoints Platinum Card are both attractive for rewards.

American Express cardholders are offered curated tickets via ‘Amex Invites’

Generally, American Express states that for certain concerts and events, cardholders have access to ‘the best-reserved tickets’. For more details and to see what’s on offer, see Amex Invites.

To earn Airpoints, you’ll need to be a member of the Air New Zealand program

It’s free to join, and there is no annual fee. If you book domestic flights, there are no additional taxes or fees to pay either. If you book an international flight, you will have to pay these additional fees in cash (i.e. card or bank payment).
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