I have been using a AMEX Gold credit card for the last 4-5 months. I have an alternate Citibank card to use at outlets where they don’t accept AMEX. So I usually didnt face much issues. Recently 2 incidents happened which changed my impression about this card.
First they changed the point system. Earlier you could earn 5X the points for all transactions made on the weekends. Now the policy has been changed to earn 5X the points for purchases made from grocery stores on all days. On the face of it it seems to benefit the customer. But if you read it in detail the point system favours only those who use their AMEX for groceries.
I used Amex in the past for paying my premium amounts for my pension and insurance policies. Second reason which irked me: While signing up for the card I was informed that their is no limit on the card. This is because in essence it is not a credit card. You have to make the full payment within the due date of billing. It is not possible to rollover the payment by making a minimum payment. This was OK with me as I always pay my bills on time. I had signed on for the card because of the point system.
I received a rude shock the other day. I had to pay the premium for a insurance policy. The payment was in four tranches of 50K, 50K, 15K and 15K. The total would add up to 1.3 lakhs. I just called them up for a verbal verification that their wouldn’t be an issue. I received a shock when I was told that there is a limit of 1 lakh on the card. This is based on the salary slips, previous payment history etc.
I requested them to increase the credit limit for this cycle to accommodate the payment. I was told that this was not possible. How is this card different that other credit cards? Other credit cards also decide the credit limit based on salary structure etc. They at least convey to the applicant when they receive the card the credit limit which they have been assigned.
In the case of AMEX I was told that there is no limit on the card and then when I need to make a payment beyond my normal limit I am told there is a limit of 1 lakh. The reason why the second point irks me more is that I have to travel abroad frequently. There are times when you exceed the 1 lakh purchase limit in a month very easily. In fact purchasing 2 ipads itself takes it above the limit.
Why are such bogus claims made when dispatching credit cards. I have a good mind of cancelling this card.