American Express’ Platinum card offer: Only for the affluent class with higher spends and specific needs

Eligible cardholders who wish to upgrade to the Amex Platinum card can do so until January 31, 2025.

American Express has announced its decision to offer select existing cardholders the option to upgrade to its premium variant - the Platinum card.

According to the card issuer, only cardholders with a strong credit history with no payment defaults and specific income requirements will qualify for this offer. For example, salaried individuals must earn an annual income of Rs 25 lakh or more, while self-employed individuals must earn Rs 15 lakh or more annually. Additionally, to qualify for renewal benefits, cardholders must meet a minimum annual spending requirement of Rs 20 lakh and pay the renewal fee.

Eligible cardholders who wish to avail of this offer can do so until January 31, 2025.

What’s on offer?

This upgrade offer is by invitation – only cardholders who have communication from American Express will be eligible for this offer. The card issuer has sent the invitation to those existing customers with cards such as Platinum Reserve, Platinum Travel, Membership Rewards, Gold Charge, among others.

Cardholders who decide to accept the offer can choose between these ‘welcome’ offers:

Option 1: 1 lakh membership reward points within 120 days of card membership plus an extra 50,000 membership reward points upon spending Rs 50,000 within 60 days of card membership.

Option 2: Choose between any one of following offers —Taj Hotels (vouchers worth Rs 50,000), Luxe Gift Card vouchers worth Rs 35,000 and Postcard Hotels and Resorts vouchers worth Rs 60,000.

In addition, such cardholders receive additional vouchers, allowing them to choose between a Rs 25,000 Luxe Gift Card or Rs 25,000 worth of Taj vouchers, besides their existing benefits.

"For those who frequently stay at luxury Taj properties, this card is worth upgrading, as it offers Rs 75,000 worth of Taj vouchers,” says Eshwar Vemala, a credit card reward maximisation consultant.

To avail of the offer, eligible card holders must apply online through a dedicated web link provided by American Express. They will have to complete the KYC process and other formalities, post which the card will be issued.

Also read | American Express Platinum Card revamped: Enhanced benefits, but fees higher too

Be ready to shell out hefty charges

The card comes with an annual fee of Rs 66,000, plus 18 percent Goods and Services Tax (GST), totaling Rs 77,880.

Of use only to high-spenders with specific needs

According to Rishav Anand, Founder of RewardMatrix, a credit card comparison website, the American Express Platinum card's annual fee of Rs 77,880 (including GST) can be well-justified for individuals who spend Rs 20 lakh or more annually and regularly indulge in premium travel or lifestyle experiences. "For those who can maximise benefits such as airport lounge access, hotel elite status, and exclusive events, having this card can be a significant change," he adds.

He rates the card high on the reward point transfer mechanism. It allows you to transfer membership reward points to Marriott Bonvoy at 1:1 ratio (plus 30 percent bonus in the offer month) and further to partner airlines at a 3:1 ratio with 5K bonus miles.

Also read | Tax rebate denied in July 2024? Revise your return by Jan 15 to claim the same

Evaluate the terms and conditions carefully

While considering an upgrade to the AMEX Platinum Card, Vemala advises starting with an estimate of your annual spend on travel and other eligible expenses. Next, weigh the card's rewards and benefits against its annual fee to determine your potential return on investment. This will help you make an informed decision about whether the card aligns with your spending habits and financial goals.

However, you should weigh two key factors. Firstly, the card's substantial annual fee of Rs 77,880 (including taxes) must be justified by your spending patterns. Secondly, as Anand points out, the card's benefits may have limited value if you fail to meet the required spending thresholds or don't utilise the premium perks, which can significantly impact the card's overall worth.