Condoms, tampons and banana-skins (American Express Blue)

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Product:	American Express Blue
Date:	07/02/03 (115 review reads)
Rating:

Advantages: Good purchase, refund and online fraud protection, Flexible with penalties

Disadvantages: Limited stores accept it, Uncompetitive APR

AMERICAN EXPRESS BLUE
To Apply:
Visit: http://www.americanexpress.co.uk
Telephone: 0800 169 6767

Thesedays, you wont find many folk below a certain age without that essential just-in-case item about their person. An emergency condom or tampon for example. Not that I have much need for tampons - bar juvenile incidents in public houses - but since March 1999 I have had an emergency credit card in my wallet. It's called: American Express Blue. As shopping with it has historically proven a somewhat arduous task, it's there for those rare occasions when I need cash in a hurry. Like when I've hit my cashpoint limit, have maxed out my VISA cards and need more dosh. That just about sums up my Christmas in a sentence.

ESSENTIAL CREDENTIALS

Provided you're at least eighteen years old, have a permanent UK address, a regular income of at least £8000 per annum, a current account - and no County Court judgements - you are welcome to apply. For a decision within approximately ten minutes, an application form can be entered online; alternatively you can telephone and request an application form through the post.

The credit limit is variable (£700-£10,000) and the figure decided upon will depend upon your disposable income and your credit rating. You will be notified of your credit limit upon acceptance and not before.

All applicants have the right to cancel their agreements before the first instalment is due. Interest will be waivered although any goods purchased with the card must be returned. Active cardholders (those already paying instalments) who wish to close their account, must return all cards, pay off all monies owed and send a letter requesting an end to the agreement.

FRINGE BENEFITS

Firstly, credit where it's due (and no pun intended): For such a moderate credit card, American Express Blue should be applauded not only for offering refund protection of up to £200 per
item (to a maximum of £750), but also for the provision of purchase protection of up to £20,000 annually. When the card changed it's appearance (from the Statue of Liberty to the Blue Chip) to suit a more online generation, an unlimited online fraud guarantee was also introduced. Similar protection from competing credit cards (Capital One Classic springs to mind) comes at additional cost, so this should be quite impressive; at least it would be if more online stores accepted the card.

APR AND ANNUAL FEES

With 18.9% APR on purchases and 4.9%APR on balance transfers, AMEX Blue doesn't look particularly good on paper. It looks even worse when you consider the balance transfer rate increases to 9.9%APR after six months and the overall APR is adjusted to 20.7% if annual purchases are less than £500 pounds. American Express might argue that this is offset by the lack of an annual fee. However, spending less than £500 pounds annually will result in a membership fee of £15 pounds being imposed; yes - on top of the increased APR! And believe it or not, the contemporary Blue Chip appeal is diminished even further by a £1.50 or 1.5% (whichever is greater) surcharge on all cash withdrawals.

ONE PERCENT MONEYBACK

For every pound you spend with AMEX Blue, one penny will be given back; or rather, each penny will accumulate in a special section of your monthly statements, and after each successive twelve month period, will be credited to your account. Typically, the 'One Percent Moneyback' offer has fallen victim to the American Express trend of obfuscating positives with negatives: This benefit does not apply to cash withdrawals, balance transfers, nor any month during which the credit limit is exceeded or for which the minimum payment wasn't received in time.

MONTHLY STATEMENTS

At monthly intervals, AMEX statements are sent to British customers all the way from Fort Lauderdale, Florida, USA. The P
ony Express however, will not be required to return your minimum payment, as there are much easier methods available: Direct Debit, Bank Giro, Transcash or Cheque. All payments (3% of total balance or £5; whichever is more) must be received within twenty-five days of the date on the statement.

Due to the distance involved, not to mention the state of the UK's postal service, statements are often received too close to the payment date. Thankfully, American Express are understanding at such times and tend to waive the penalty.

DEFAULTS AND PENALTIES

For overdue payments, bounced cheques and failed direct debits, a £15 penalty is imposed. Although the terms and conditions state a £3 fee for copies of records of transactions, and a £5 fee for copies of statements, I have requested both in the past and not been charged at all. Lost cards (unless stolen) cost £20 to replace - although again - I've had lost cards replaced for free. I'm not sure whether AMEX Customer Services are briefed to use discretion positively, but as I have friends and relatives who have had the same fees waived, indications are that penalties aren't strictly enforced. This can only be a good thing.

24 HOUR ONLINE ACCOUNT ACCESS

One of the strongest points of AMEX Blue is the online service available. Although painfully slow at times (and definitely not restricted by my internet connection), it's possible to view unbilled charges as well as billed charges from any period. As the online service wasn't introduced until I'd already been a member for a couple of years, it's interesting to note that my account history is available back to day one. So, even if an old statement has been misfiled, it's easy to locate and print a copy online.

Balance Transfers can also be conducted online and a Direct Debit mandate is available for printout whenever required.

CREDIT CARD REALITY CHECK

Sadly, th
e list of retailers who refuse AMEX is long, and with names like Dabs.com, IKEA, John Lewis, Littlewoods and NTL, it's hardly smalltown cowboys refusing to do business. Three years ago, American Express assured me of continuing work to gain wider-acceptance of the card, yet large companies are dropping support for the card in droves. Despite numerous complaints over many years, it's difficult to see results. At the most, an apology and a ten pound credit will be issued when you complain; an ironic gesture considering a ten pound cheque written on a rotting banana-skin might prove far easier to spend.

With one time AMEX friendly companies now rejecting the card, you have to ask: Why? According to a spokesman from Dabs.com, the reason is two-fold: American Express not only charge more commission than other card companies, they also settle card payments in bulk at the end of each month. This policy is not only an administrative nightmare but also dents profits (consider lost interest) already hit by the high commission rate.

CONCLUDING

Since becoming a homeowner, I seem to have outgrown this card because my other (non-fixed APR) credit cards now charge less than 6%APR. Even so, I struggle to find a reason for my original application.

Perhaps if it was a VISA card, it would be ideal for younger people on lower incomes, unable to get more competitive APR. But unlike VISA, the American Express brand is shunned by such an increasing retail audience that it's very existence is difficult to justify.

I propose a new slogan: Do leave home without it!

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