Earlier this year, American Express announced they would increase the annual fee on their premium consumer product, The Platinum Card from American Express, by $100 to $550 every year. After taking a closer look at all the benefits, I made the decision to cancel my card. Compared to other products, the Platinum Card felt archaic and stale – meaning it was time for a change.
In turn, I had two true options to turn to as a replacement for my card: the Amex EveryDay Card and the Premier Rewards Gold Card from American Express. Although the Amex EveryDay Card had no annual fee attached to it, the card only earned double Membership Rewards points on grocery purchases, up to $6,000 every year. With my want to travel, my penchant for purchasing gift cards towards my next trips at the grocery store and keeping some of the status of holding a charge card, the Premier Rewards Gold card seemed like a better fit. Besides, the $195 fee can be immediately reduced with the $100 airfare credit.
With a month go to before my annual fee came due, I gathered my courage and dialed the American Express Platinum service line. The first time I attempted to call, the automated system hung up on me – which seemed to be a fitting start to my adventure. In my second call, I was able to use the voice prompts to speak with a human and explain my reasons to cancel my card.
I walked through my reasons very rationally and calmly. I explained that with the increased annual fee without benefits that enhance my lifestyle, the Platinum card no longer held the same value and I wanted to explore new options.
Before we talked about alternatives, my customer service representative tried to resell me on the benefits of the Platinum card, including the $200 airline credit and quintuple points on airfare and prepaid hotels. I explained that the Chase Sapphire Reserve offered a better travel credit, and the five times multiplier on hotels did not help me because I did not want to prepay for all my hotels through American Express.
Half expecting to get a retention offer, the customer service agent did not try any further to sell me on the benefits of the card. Instead, he beat me to my own option: downgrade to the Premier Reward Gold card. As a courtesy, I would keep my card number and “Member Since” date, as well as a pro-rated credit on what remained of my annual fee. After reading the terms and conditions, I accepted the offer.
So what happened next? My Platinum card was still usable for one month afterwards, but I wouldn’t need it – my Premier Rewards Gold card came within one week. However, many of the benefits were cancelled immediately: days after making the switch, I received an e-mail informing me I would no longer benefit from Starwood Preferred Guest Gold status granted from the card. While I did not activate my Hilton Honors Gold status from the card, I believe that would have been cancelled as well.
Overall, was it worth it? Yes – in fees alone, I save $150 every year and get better bonus categories, such as double points at U.S. restaurants, supermarkets and gas stations. While I will miss some of the other perks, such as access to Centurion Lounges and Delta Sky Clubs, making the shift helps me get closer to my next frugal adventure, which is the point of this hobby to begin with.
Have you ever gotten better service from taking a downgrade? Let us know your experiences in the comments below!
Written by Frugal Travel Guy @ https://www.frugaltravelguy.com
Written by Frugal Travel Guy @ https://www.frugaltravelguy.com