Originally Posted by sengsational
True, they give you 6% on groceries, for instance. So you spend $100 and they give you 600 points. In most cases, that means you can use those points for $6 worth of spending. But that's not my experience with the Amex card I got. When I tried to use the points on Amazon, for instance, I needed to spend 2154 points to get $15.38 worth of goods. So what "should have" cost me 1538 points cost me 2154 points. Another way to look at it is that they added a 40% fee. Maybe you can find a way to spend your points at $0.01 each, and I eventually did, but it's probably not going to be easy.
I am not sure what card you speak of. The cash back card doesn't do "points", it's a cash value that you redeem for cash credit. My business card (2% cash back on all purchases) makes it even easier as it's automatically applied as a credit each month. So, I think we are discussing two different cards. The one I speak of is the AMERICAN EXPRESS CASH PREFERRED CARD." There are NO points earned on this card, only cash back.
There *is* an Amazon card, but as far as I know, this is through Chase...and it's a Visa. They *do* points, but it's a simple 5% for AMZN purchases and redeeming is pretty simple through the AMZN website when you check out. I am utterly confused as to what card is taking a 40% fee.
Looks like we have an apples and oranges comparison here.