Reader question: The Amex Payback credit card

Reader Deepak V asked me recently about the American Express Payback Credit Card that was launched in India earlier this year – in June 2013 to be more exact. Payback is India’s largest multi-brand loyalty program, earning Payback points for transactions (determined both by number of transactions in some cases, and of course by value of transactions). Some of their more popular tie-ups are with ICICI Bank, Flipkart.com, ebay.in, eZone, Big Bazaar and makemytrip.com. And as with any loyalty program, Payback points can be redeemed for rewards.

Now, I haven’t myself got this card, so a lot of what follows is public information from multiple sources, but in one place.

The card itself comes with a joining fee of Rs 750, and annual recurring fees of Rs 1500 (annual fees waived if spends cross Rs 150k in a year). I’m not sure if there’s any other category under which a user qualifies for waiver of these charges. Purchases on the card accrue 3 Payback points per Rs 100 of spend, plus bonuses with specific establishments or types of purchases. Of course, the biggest advantage is that Payback points can be earned from other transactions also (ie with Payback’s other partners). So the Amex card is not essential to earning these points.

The Amex card, however, does come with some advertised benefits, such as welcome gift vouchers worth Rs 3k (these are vouchers from their other partners, redeemable for purchase of those partners’ products), discounts on dining/travel/online shopping, and also additional Payback points when shopping at specified establishments using the Amex Payback card. Below are the full details from the Amex page for this card.

Conclusion


For a miles and points hobbyist, there are many avenues for earning loyalty rewards. Given the newness of this card product, I’m not entirely sure of the benefits that are advertised, or the utility of those to a broad spectrum of individual customers. The card was launched targeting young individuals in the 25-35 years age category with an annual income in the region of Rs 400k to 700k. So in my view, this may not really be ideal for many, particularly airline miles and hotel points enthusiasts. And about the Rs 3k benefits – what’s the point of getting into it without knowing what you’re getting out of it? In summary, I wouldn't necessarily get this card, even if it was offered free. Plus, where's the miles?

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