Should credit card reward cards all be equal?
Say, I have a platinum American Express credit card and you have a gold American Express credit card. I want to buy an item with my travel miles, that cost 10,000 miles. You want to buy the same identical item with your travel miles. I am charged only 8,500 miles for this item and you are charged 10,000 miles for this item. Question: why am I charged less for the same item that you will pay the full price for? Is it the difference in our credit cards? Is this discrimination on the part of American Express, just because we have two cards that have different colors?
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No. Looks fair to me. You have different cards, so different rules go with both. What’s the advantage of one if both are the same? I don’t do miles or rewards or any of that, I use my card for very few things and pay it off in full every month, and ain’t interested in all the side stuff. But, still, each card comes with different interest rates and credit limits and whatevers, so it would seem point spending shouldn’t be the exception to prove this rule.
I guess I should have explained this a little more. Their catalogue advertises an item for 10,000 miles traveled. Shouldn’t each person be charged the same air miles for the same item? This sounds like bait and switch to me. There is no disclaimer to explain the price difference, just because the cards are a different color.
It would only be bait and switch if they advertised 10,000 and then charged a gold member more. Giving it to you for less with your platinum card is a benefit of a better credit score.
@john65pennington Sure, then, as long as all cards use the same catalog for their trades. Like I say, this is all unfamiliar territory to me, but if you all use the same catalog for the same trades, the prices should either be the same or the differences be obvious. Not unlike them grocery stores who have different prices depending if you have a card account (not credit card but like membership card) or not.
@john65pennington There’s a different annual cost for the two cards like $450 for Platinum and Gold Rewards is like $75.
You also need a higher credit score to meet minimum entry for Platinum.
Different benefits for different cards.
Ultimately, it comes down to money and image. Programs differ because the creators want to attract and keep as many people as they can, and different people have varying situations.
In a free market, vendors are allowed to set their own prices.
Nothing is truly “free” with rewards programs.
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Each card has its own offering when they were launched. Which means, even if it is issued by the same issuer, credit cards may have different treatment depending on the offers they carry. Also, issuers may choose to have a different treatment for particular cardholder depending on the credit performance of the cardholder. And this is not being fair; that’s how business works.
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