A massive American Express Platinum points drop happened this morning. Instead of the AMEX personal platinum card giving 70,000 points (60,000 after minimum spend and 10,000 six months later), you’ll now only get 25,000 points. This is for both the public and referral link offerings. The minimum spend requirements have also dropped to $2000 within the first 90 days of getting this card. Annual fee is still $699 and the $200 travel credit is the same as well.
The American Express business platinum was previously offering 75,000 points through a referral link and 40,000 points through the public offering. It has now been dropped to 35,000 points for the public offering and 45,000 points for the referral link. Minimum spend requirements remain at $7000 for the first year for the referral link. However, the public offering minimum spend requirements was bumped up from $5000 to $7000 within 90 days of card approval. Annual fee remains at $499.
Both referral links have also dropped to 5000 points. Previously, the AMEX Personal Platinum provided 15,000 points while the AMEX Business platinum provided 25,000 points.
Video – American Express Platinum Points Drop
Why did the massive American Express Platinum points drop happen?
Recently, American Express is cutting its spending by 3 billion dollars in response to the economic downturn. During a recent quarterly report, they lost 76% of their revenue thanks to the economic impact of COVID-19.
In order to survive the economic downturn, American Express has gone on the defensive to protect the company’s longevity.
I personally really like American Express. They’re easy to deal with and they’ve helped many Canadians travel to so many places thanks to their lucrative sign-up bonus. I see recent changes to be temporary until the Coronavirus pandemic passes and we can all travel and do normal people things again.
The quick wins, the slow loses
The points and miles game award those who are quick. Those who don’t hem and haw and “think about it” before making a decision. Recently, if you got the American Express Personal Platinum card, you would have been eligible to earn 60,000 AMEX points after hitting the minimum spend requirements and an additional 10,000 AMEX points after holding the card for six months.
This is especially good because of the recent promotion that ends July 20, 2020. The promotion states that for every 1,000 points you redeem towards your statement, AMEX will credit you $20. So as you can see, that 60,000 points would have easily earned you a handsome $700 profit.
When something is too good to be true, chances are, it’s going to get shut down pretty quickly.
While the blow to the American Express Platinum cards was quite steep, the other cards are still a good deal. Moving on in the nearby future, the American Express Gold, Business Gold, and Business Edge cards are still a good deal to take advantage of since their welcome bonus points were unaffected by this most recent change.
While it sucks for those individuals who missed out on this good deal, just remember that this is just a response to the current economic situation.