For a few years, American Categorical Bank cards have been most well-liked by many Indian prospects resulting from their premium companies, strong rewards, and versatile redemption provides. Many cardholders would accumulate factors and use them to redeem Amazon vouchers. Nevertheless, a latest change made by Amex concerning the costs left many loyal prospects dissatisfied. From July 25, 2025, the comfort prices have doubled from 0.75% + GST to 1.5%+GST. This will likely appear to be a small change, but it surely has a huge effect on the true worth one will get from Amex rewards.
New Expenses: What’s Altering?
This isn’t the primary time Amex has modified its insurance policies concerning Amazon vouchers. Beforehand, the month-to-month restrict for Amazon vouchers was INR 25,000, but it surely was then diminished to INR 10,000. On prime of it, they’ve additionally doubled the comfort price. Amex permits its cardholders to earn reward factors and to purchase vouchers from the platforms referred to as Gyftr or Reward Multiplier. Main manufacturers on this platform are:
- Amazon (Pay and vouchers)
- Flipkart
- Myntra
- Croma
Earlier from Feb,2025, Amex began charging a comfort price of 0.75% + GST on Amazon vouchers, and now they’re charging 1.5% + GST from July 25, 2025. Let’s say you’re shopping for an Amazon voucher price INR 10,000
- Previous Expenses – INR 88.5
- New Expenses – INR 177
Who’s Most Affected
- Amex MRCC and New Customers: They earn 2X on their vouchers, because the price is doubled (1.5%), they can’t get pleasure from any profit, as they find yourself paying much more.
- Mid-Time period Customers: They earn 3X on their vouchers, and so they additionally would undergo a bit. Because the rewards would cowl the price.
- Premium Customers: They earn 5X on their vouchers, even then, the general achieve can be lower than earlier than.
Additionally learn: Finest 5 Credit score Playing cards for Each day Use – Good Spenders Are Switching Quick!
Why Does this Change Matter?
- Much less Worth: As the costs have doubled, the true worth of the factors has been diminished. Generally, it prices greater than your precise earnings.
- Belief Points: Because the cardholders enroll anticipating good worth, however find yourself paying greater than they earn, it creates mistrust among the many cardholders.
- Cardholders might begin on the lookout for one other supplier: Banks like ICICI, Axis, SBI, and HDFC supply higher reward applications, with no further price. This pushes Amex cardholders to change.
What Ought to Cardholders Do Now?
- Don’t purchase Amazon vouchers: It’s higher to cease shopping for Amazon vouchers as the true worth you get could be very low, so it’s not helpful. Primarily, in case you are in MRCC or have playing cards that give much less reward, then keep away from shopping for Amazon vouchers.
- Use rewards for different vouchers: As the costs are levied solely on Amazon vouchers, you should use your reward factors to purchase vouchers of Flipkart, Myntra, BigBakset.
- Recalculate your rewards: You need to recalculate the precise worth of your rewards by contemplating the brand new prices.
- Use the factors for journey: For those who journey principally by flight, you would use your factors to guide flights and accommodations. This provides higher worth than utilizing factors to redeem vouchers.
- Use different bank cards: For those who use an Amex card just for Amazon vouchers, it’s higher to change to different credit score suppliers reminiscent of SBI, HDFC, ICICI, and Axis Financial institution.
Conclusion
The American Categorical bank card is well-known for its premium experiences and greatest customer support. However in India, the customers want the true worth relatively than only a model from the playing cards, particularly when spending on common purchases. Amex had doubled the costs, with out offering any further advantages, leaving many customers dissatisfied. It’s higher to rethink on how one can use the factors until you’re utilizing a high-end Amex card with 5X multiplier.
Written by N G Sai Rohith
The publish American Categorical Doubles Amazon Voucher Charges: Right here’s How It Impacts You appeared first on Commerce Brains.
