How the Amex Cashback Credit Card works, its benefits and fees

The American Express Cashback Credit Card allows you to earn cash back on eligible purchases without any cap on the amount of cashback. You’ll receive 1 per cent cashback for every $1 spent. In the first few months, you may be eligible for an additional cashback of up to 5 per cent. However, this is capped at $200. Your cashback is halved when you use the AMEX Cashback Credit Card for paying the ATO. 

There’s no annual fee associated with the card. Instead, you pay $10 a month to use the card. 

You typically do not pay an annual fee with the AMEX Cashback Credit Card. Instead, you pay a monthly fee of $10, which amounts to $120 annually. A simple calculation, using the cashaback benefits, will tell you that you need to spend $12,000 over a year to break even on this cost. This excludes any payments to government bodies that earn cashback at a lower rate.

One of the biggest drawbacks of this card is the higher than average purchase rate. AMEX does provide you with 55 interest-free days so that you have a window to pay off your credit card balance in full without incurring interest. Still, you could incur hefty interest charges at the purchase rate depending on the balance once the interest-free period is over. 

If you’re planning a big purchase on your card, and you’re trying to avoid paying interest, you may want to consider the Plan It feature to manage your expenses. Plan It allows you to make your repayments in instalments and spread them out over a few months. This offers you a more flexible way to manage your debt. Read the terms and details of Plan It on the AMEX site.

If you’re an Australian citizen or permanent resident aged 18 or over, you can apply for the American Express Cashback Credit Card. To be eligible, you must earn over $40,000 per year and not have any bad debt on your credit file.

You can apply for the AMEX Cashback Credit Card online in a few simple steps. As long as you meet the eligibility requirements, you should hear back on your application quickly and receive your new card in the mail within weeks. 

Overall, the cashback credit card by AMEX could be worth considering. It offers an affordable monthly fee structure and the benefits AMEX cards are well known for. The card allows you to use your money twice to some extent by crediting your account with a one per cent cashback on every spend. However, ensure you read the full terms and conditions before deciding if the card is right for you.

You must decide whether the AMEX Cashback Credit Card suits your spending needs and financial situation. Or if instead, you want to compare other cashback credit cards to see if you could land a better deal.