American Express Nectar Card are introducing a £25 annual fee from 20th May 2013

33
Found 28th Mar 2013
American Express Nectar Card are introducing a £25 annual fee from 20th May 2013 just to use their card.

In return you will receive 2 nectar points per £1 spent instead of the normal 1 point on spending elsewhere.

Details here.......
americanexpress.com/uk/…tml

Basically you will need to spend £2.500 just to pay-off the £25 fee. Thats 5,000 points lost each year from your points total.

I maybe forced to move over to my Tesco Credit Card, not unless Tesco introduce an annual fee too.

Whats peoples views on this latest change ?
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33 Comments
so to benefit from this change you have to spend more than £5000 using this card each year but even then you have paid them £25 and they give you the equivalent in nectar points,
why not look at the cash back cards even Nationwide & Santandar?
No way would I pay an annual fee for a credit card - unless the profit was more.

Just ditch that one and get a cash back card - even 1% is better than nothing, or if you do spend quite a bit on petrol etc, the Santander 123 Credit Card is quite good at the moment.
I would still benefit from keeping the card, but I just don't like the idea of paying a £25 fee for a card that is rarely accepted. We collect most of our Nectar points shopping in Sainsburys and buying petrol, using Amex elsewhere is limited. So paying a £25 fee to collect an extra 1 point per £1 is silly.

Basically the way I look at it is...... Amex give you an extra 500 points each month if you spend £500 or more, thats £30 worth of Nectar points each year. We spend over £500 each month so I would just minus the £25 fee from our annual £30 points bonus, but still its not quite fare that Amex give us something in one hand BUT then take it away with the other................£5 bonus instead of £30
Edited by: "Da11as" 28th Mar 2013
^^ so you are making £5 a year for keeping the card - change it to a cash back card, it just does not make sense to keep it.

Also, like you say, you are very limited when it comes to places accepting the card.
According to that link you can stay on the old terms - no fee but only 1 point per pound.
alternate

According to that link you can stay on the old terms - no fee but only 1 … According to that link you can stay on the old terms - no fee but only 1 point per pound.



Yes I've just applied.

I've also applied for the Sainsburys Credit card, so will be ditching the Amex........ shame really.
I got a letter in the part regarding this. I also don't like the idea of the annual fee.

I need to do the math but I think it wouldn't be worth my wild sticking with amex.

Can anybody recommend an alternative card with good cash back or rewards?
amazon credit card
ceanth

I got a letter in the part regarding this. I also don't like the idea of … I got a letter in the part regarding this. I also don't like the idea of the annual fee.I need to do the math but I think it wouldn't be worth my wild sticking with amex. Can anybody recommend an alternative card with good cash back or rewards?



Sainsburys Cashback credit card...... 5% cashback for first 3 months......
Ideally i would like something which offers good rewards long term. I don't intend to spend a high amount for the first 3 months
thanks for this information OP. I had no idea Amex were doing this. I didn't receive letter or anything. Only stumbled upon this by coincidence and i signed up to keep the old terms.

AMEX trying to do a sneaky...
k9plus1

thanks for this information OP. I had no idea Amex were doing this. I … thanks for this information OP. I had no idea Amex were doing this. I didn't receive letter or anything. Only stumbled upon this by coincidence and i signed up to keep the old terms. AMEX trying to do a sneaky...



How do you sign up to keep the old terms? I didn't receive such an option in my letter
in the OPs link, there is a button to apply for the alternative nectar card. they don't send you a new card, just keep you on the current terms.
I just called Nectar regarding this. They told me that the changes will occur on the 21st of May 2012 and you won't actually get charged the £25 until the anniversary of the account.

My account anniversary is on the 20th of May so essentially the anniversary of my account from when the new charge is introduced will be 21st May 2014 so i get the new benefits (2 points per pound) for free for a year!

I also did some number crunching....

If we assume I only use my card on non nectar places and I spend a £1000 a month then that will be 2000 nectar points a month (2 point per pound).

Over 12 months is 24000 points (2000 x 24). If 500 nectar points = £2.50 then 24000 points is £120 (24000 / 500 * 2.50).

£120 - £25 annual membership fee is £95

If I get the Amazon credit card and spend £1000 a month I get 1000 points which entitles me to £10 gift card. Over 12 months that's £120 (10 x 12)


So I would be better off with the Amazon card in terms of earning hard cash. Realistically I won't be spending £1000 a month at the moment because I'm not working and in and out of hospital and also because my annual membership won't get charged until next year I might as well stick with the nectar scheme for a year and switch over to amazon next year.

That's what I'm thinking unless my math is totally wrong?
You will need to opt out before 10 May 2013 if you do not want to get charged the £25 fee on you anniversary date, otherwise you will be charged a cancellation fee if you cancel mid term (after 10th May).

Need to opt out by 10th May 2013

My anniversary is November 2013, I have arranged to change to the alternative Amex Nectar Credit Card which offers collect 1 point for virtually every full £1 spent on each purchase you make (No annual fee).

I have also applied for the Sainsburys Nectar Credit Card, most of our spending is with Sainsburys anyway, plus I will not be restricted spending elsewhere as the Sansiburys Nectar credit card is welcome everywhere, not like the Amex card.


Edited by: "Da11as" 2nd Apr 2013
Didn't think of the cancellation fee!

I don't seen to see how much this is on the link, do you know what that charge would be?
I am sorry to learn that you do not wish to continue with your Card.

I wrote to them and they responded with the below. I said there was no mention of this in the letter received. Pretty poor.

Our goal is to deliver quality customer service while fulfilling your financial needs in best possible way.

The introduction of annual fee allows us to sustain excellent quality of service as well as increasing card members earn rate to 2 Nectar points for virtually every £1 spent as well as offering some great new partner benefits in conjunction with Hertz to boost Cardmember value

Before closing the account if you wish to review alternative options available to you, please visit the following link:

americanexpress.com/uk/…tml

You will be able to opt for an alternative Nectar Credit Card which allows you to collect 1 point for every full £1 spent on the Card. Also, there is no annual membership fee for the Card.

The New No Fee Card has additional benefits which are as follows:
- Refund protection within 90 days of purchase if a UK based retailer refuses you a refund.
- Online fraud guarantee protects you against any unauthorised online charges.
- Purchase Protection covers eligible items you purchase against accidental damage and theft for 90 days.

You will be able to opt for the fee free Card by clicking the 'Apply Now' button on the weblink. You can continue to use your existing Card in the meantime.

If you still wish to close your account immediately please visit the weblink mentioned below.

americanexpress.co.uk/optout

Please ensure you cancel any recurring/subscription charges (e.g. internet service providers or insurance) directly with the merchant. Please dispose off your Card safely.

I have found out today that Amex Nectar Card have also done away with the 500 extra Nectar Points when spending over £500 (i.e spend over £1000 each month and you receive an extra 1000 Nectar Points etc)................. this has now been stopped.on both Amex cards
Edited by: "Da11as" 5th Apr 2013
that makes the amex card a bit useless then doesn't it ?
k9plus1

that makes the amex card a bit useless then doesn't it ?



I guess if you use it a lot then you would break even and could potentially make it worth it.
Dont forget all the foursquare and xbox offers!? They paid me £35 last year just for syncing my xbox and completing halo. £25 back from currys when i bought my kindle. £15 back on fuel at Shell, £25 free at Harvey Nichols? If any of you havent been getting these offers then you havent been getting the potential out of your card abyway. If you DID get these offers then whats the problem? Any one of them pays the new fee for you. IF (and its a big IF) we can expect more of the same in the future then £25 is pittance!
ceanth

I guess if you use it a lot then you would break even and could … I guess if you use it a lot then you would break even and could potentially make it worth it.



I've already opted for the free card. Without , ore points and the bonus points, the amex is useless.. might as well go for a standard 0.5% cashback card. At least it is widely accepted
No matter which way you slice it - what Amex is doing is to shift patronage away from the 'small person' back to the 'frequent flyer' user.
We're in our seventies - not yet (quite) brain dead .... Amex "you can go replicate yourselves" Others on here have added good alternatives - we'll seek them out. Also, correct - 'Amex' is not universally accepted - so why bother?

After several years of total patronage of Sainsbury's we have been appreciative of Morrison's 'coupon' benefits ... since Christmas that's meant a saving to us of £50 and there's another one in vogue. Plus, better ranges, some great half-price offers and cheaper petrol ... what price loyalty to Nectar and Sainsbury?

So, fellow pensioners ... go and find a better deal - save brain-ache and dump these 'special relationship bandit Americans' their mission statements are to rip Brit's off.

Thank you 'hotukdeals' I feel ever so much better for this . . .
I called Amex again, they confirmed I would pay no fee for the first year and would have no cancellation fees if I wanted to cancel the card.

I don't intend to use my credit card for a year as I'm not working due to a medical condition. I'm tempted to keep the card for the sake of it and once I'm out of hospital I think I'll switch over to amazon.

I'm assuming that master card is more accepted then Amex?
I've done the calculations based on my last 12 months spending patterns, and the new AmEx deal, offering double points, actually means I'll be better off, even with the £25 annual charge.

It's massively better for me than the fee-free AmEx Nectar card, and considerably better than other cashback offerings, like Sainsbury's credit card.

People who don't like fees and are just cancelling the card are pretty silly in my opinion. Of course, everyone is different but you HAVE to do the sums and work out whether it works in your favour or not. As I said, for me, the double points per £1 (quadruple in Sainsbury's) means I am more than £35 a year better off (only £10 a year taking into account the annual fee). Free money and I'm the winner.

Maths is King!
just spoke to amex nectar about applying for no fee card. they said that you will not be charged a fee until your card anniversary(mine is January) and then even after they make the charge you can opt for the fee free card and they will refund the charge. So I can get double points until then.
From everything I have read, it was the letter they sent that offered no alternatives that has caused so much confusion.

I had to call Amex to establish a no fee card was still an option. Why did they not make that clear?

True to say if you have a smart phone you can take advantage of Foursquare, but why have to go through the hassle when you have to call Amex most times because Foursquare credits have not happened.

I think they have completely misjudged the reaction they expected. No "More Points", no more Amex.

There marketing team should take a long hard look at themselves, and teach them how to write a letter that does offer alternatives other than the "take it or leave it" letter I received..
camyank

just spoke to amex nectar about applying for no fee card. they said that … just spoke to amex nectar about applying for no fee card. they said that you will not be charged a fee until your card anniversary(mine is January) and then even after they make the charge you can opt for the fee free card and they will refund the charge. So I can get double points until then.



I think Amex are telling misleading answers to their customers.

You will need to opt out of your original Amex card offer before 10 May 2013 if you do not want to get charged the £25 fee on you anniversary date, otherwise you will be charged a cancellation fee if you cancel mid term (after 10th May). My letter states I will need to contact Amex before 10th May to either change or opt out of the £25 annual fee charge.

Need to opt out by 10th May 2013

My anniversary is November 2013, I have alreday arranged to change to the alternative Amex Nectar Credit Card which offers collect 1 point for virtually every full £1 spent on each purchase you make (No annual fee).

Both the original offer and the 1 point per £1 spend will no longer carry the extra 500 points when spending £500 on you card each month, I was told by Amex that this offer will also stop.
Agree with what folks have said, the letter from Amex has a lot of words perhaps to cover up something, which for a lot of people will be a less beneficial outcome.

Hypothetically, if you were to spend £1000 per month with Nectar Partners and £1000 per month with Non Nectar partners, then, if I've calculated correctly, you would have earned 5000 points (2000 points + 1000 points + 2000 bonuses points for £500 spend increments)

On the 'new order' the same spend would yield 4000 points. That is a reduction of 1000 points per month, 12000 points per year for which you have to pay £25 (5000 points) thus creating a 17000 annual reduction, thus the real cost is £85 per year v what one would have paid and recieved in benefit before.

The key is the ratio of spend with Nectar Partner v Non Partner and the overall total spend which is different for everyone.

The reduction in benefit is one negative, the other comparison is to compare spend and benefit on the new order with alternative cards to see If there is an overall benefit v the alternative card with the same spend but no fee. The advantage appears to have been lost or reduced to a level where it is not worth the hassle. In my cynical view, once a fee is established it runs the risk of gradually being increased, but, because one only sees the fee once a year , one might not notice

Looks as though my card might be going back
[quote=beetdsystumHypothetically, if you were to spend £1000 per month with Nectar Partners and £1000 per month with Non Nectar partners, then, if I've calculated correctly, you would have earned 5000 points (2000 points + 1000 points + 2000 bonuses points for £500 spend increments)

On the 'new order' the same spend would yield 4000 points. That is a reduction of 1000 points per month.[/quote]

Your calculation is incorrect on the new scheme, after all the points are being doubled, therefore £1000 spent with a non-Nectar Partner returns 2,000 points while £1000 spent with a Nectar Partner returns 4,000 points. The total = 6,000 points, which is 1,000 more points than the previous scheme!
I was quite concerned when I read this thread, so I emailed Amex. They've just emailed back to say that I'm staying on all the same benefits FEE FREE as before, including 'Morepoints'. It's only a small number of existing customers being transferred to the new scheme, as well as for new customers.
66kirk66

I was quite concerned when I read this thread, so I emailed Amex. They've … I was quite concerned when I read this thread, so I emailed Amex. They've just emailed back to say that I'm staying on all the same benefits FEE FREE as before, including 'Morepoints'. It's only a small number of existing customers being transferred to the new scheme, as well as for new customers.



How did you manage that then ?

I had to move over to the No Fee with less benefits, otherwise I would be stung with the new £25 fee on my anniversary. Silly really as I have now moved over to the Sainsburys Bank CC, Amex have now lost my custom, I would spend between £800 to £1500 each month on my Amex card (now it all goes on my SAINSBURYS CARD). I'm also spending more as my Sainsburys CC is accepted everywhere X) ..................... my Amex card is redundant, its just kept as a back-up card.......... shame really.

Hi man that extra 500 points has ended since they announced the fee charge. Luckily in my case i only start to pay £25 this March.

Da11as

I would still benefit from keeping the card, but I just don't like the … I would still benefit from keeping the card, but I just don't like the idea of paying a £25 fee for a card that is rarely accepted. We collect most of our Nectar points shopping in Sainsburys and buying petrol, using Amex elsewhere is limited. So paying a £25 fee to collect an extra 1 point per £1 is silly.Basically the way I look at it is...... Amex give you an extra 500 points each month if you spend £500 or more, thats £30 worth of Nectar points each year. We spend over £500 each month so I would just minus the £25 fee from our annual £30 points bonus, but still its not quite fare that Amex give us something in one hand BUT then take it away with the other................£5 bonus instead of £30

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