American Express is launching two new credit cards targeted at those who want to make money off of their day-to-day spending, and frequent users can even earn bonus points.
The new American Express EveryDay and EveryDay Preferred credit cards, which will be available April 2, offer customers Membership Rewards points, along with a points bonus each month when cardholders make frequent qualifying purchases.
What’s Different About These Cards
American Express already has several cards that offer points for spending, but these two cards have some unique features.
- No annual fee for the standard card. The standard version of the EveryDay card has no annual fee, and the points it earns can be used in all of the same ways as American Express Green and Gold cards that have fees of $95 and $125 respectively. Points can be redeemed for merchandise, gift cards and travel reservations, or transferred to airline miles with 17 different programs. The standard EveryDay card is the first no-fee American Express card that allows you to transfer your rewards to miles with the airline of your choice. Cardholders earn one point per dollar spent on most purchases, and double points on up to $6,000 spent each year at U.S. grocery stores.
- Extra bonus points for the Preferred card. The EveryDay Preferred card has a $95 annual fee, but offers double points at U.S. gas stations and triple points on up to $6,000 spent each year at U.S. grocery stores.
- 20% to 50% bonus for frequent users. With the standard EveryDay card, customers who use their cards at least 20 times within a month will receive a 20% points bonus. With the EveryDay Preferred card, customer earn a 50% bonus when they use their card 30 times in a month.
- Smart chip-equipped from day one. These are the first American Express cards that will have an EMV smart chip when introduced. This next generation standard improves security while being compatible with credit card terminals already in use in Canada and Europe.
- These are credit cards, not charge cards. Unlike other premium reward cards offered by American Express, customers can extend payments. New applicants even receive 15 months of 0% APR financing on both new purchases and balance transfers, although balance transfer fees do apply.
The User AmEx Wants
American Express is targeting busy customers, especially moms, who have lots of responsibilities, and little time to worry about maximizing credit card rewards. In doing so, it is working to appeal to frequent credit card users who are not necessarily high spenders.
According to Elizabeth Rutledge, executive vice president of card products and benefits, “Most Americans use their credit and debit cards twice a day, and most purchases are made at the same five stores within 20 minutes of home.” So rather than trying to persuade customers to change their shopping patterns to earn more rewards, American Express is rewarding cardholders who use these cards frequently at the places they normally shop.
Credit card issuers are constantly looking for new ways to encourage their customers to use their cards exclusively. By offering bonuses on rewards points, American Express hopes it has found the right formula for doing so.
More on Credit Cards:
- The Credit.com Credit Card Learning Center
- How to Lower Your Credit Card Interest Rates
- 6 Smart Credit Card Strategies
- How Secured Cards Can Help Build Credit
- Tips for Paying Off Credit Card Debt
- How to Get a Credit Card With Bad Credit