Finder's guide reveals how American Express credit cards have changed, and how much some common myths could be costing you
Growing up, I was a huge MythBusters fan, watching them build contraptions, crash cars and make things explode, all in the name of challenging popular beliefs. When I started my professional career and moved into the personal finance space, I discovered that there were numerous myths I believed that turned out to be untrue. No, you don't need a lot of money to start investing. No, there's no such thing as bank loyalty. And no, you can't just keep making minimum payments on your credit card without serious consequences.
Most recently, I've started racking up points with rewards credit cards, and one that piqued my interest was American Express (Amex). But didn't these cards come with sky-high fees, and at least in Australia, the awkward conversation about not being able to use them – or being charged a hefty surcharge at checkout?
I decided to dive deeper. The myths surrounding Amex aren't just outdated – Australians who believe them could be missing out on thousands of dollars in rewards.
While it may not be as thrilling as testing whether diving into water can save you from an explosion, here are the myths debunked:
Myth 1: "Don't Amex cards have really high surcharge fees?"
This is the most common misconception I hear. Historically, Amex cards were more expensive to use: in January 2005, the average Amex cardholder paid 2.41% compared to 1.04% with Visa or Mastercard. On today's average annual spend of $36,000, that was a $493 difference. Compared to EFTPOS, with an average surcharge of just 0.14%, the gap widened to $817.
Fast forward 20 years, and the landscape has shifted dramatically.
Average total merchant surcharges
Average total merchant surcharges
Date
Visa and Mastercard
American Express
Eftpos
Jan-2002
Feb-2002
Mar-2002
Apr-2002
May-2002
Jun-2002
Jul-2002
Aug-2002
Sep-2002
Oct-2002
Nov-2002
Dec-2002
Jan-2003
Feb-2003
Mar-2003
1.5
2.5
0.2
Apr-2003
1.5
2.5
0.2
May-2003
1.5
2.5
0.2
Jun-2003
1.4
2.5
0.2
Jul-2003
1.4
2.5
0.2
Aug-2003
1.4
2.5
0.2
Sep-2003
1.4
2.5
0.2
Oct-2003
1.4
2.5
0.2
Nov-2003
1.4
2.5
0.2
Dec-2003
1.2
2.5
0.2
Jan-2004
1.2
2.5
0.2
Feb-2004
1.2
2.5
0.2
Mar-2004
1.1
2.5
0.2
Apr-2004
1.1
2.5
0.2
May-2004
1.1
2.5
0.2
Jun-2004
1.0
2.4
0.2
Jul-2004
1.0
2.4
0.2
Aug-2004
1.0
2.4
0.2
Sep-2004
1.0
2.4
0.2
Oct-2004
1.0
2.4
0.2
Nov-2004
1.0
2.4
0.2
Dec-2004
1.0
2.4
0.1
Jan-2005
1.0
2.4
0.1
Feb-2005
1.0
2.4
0.1
Mar-2005
1.0
2.4
0.2
Apr-2005
1.0
2.4
0.2
May-2005
1.0
2.4
0.2
Jun-2005
1.0
2.4
0.1
Jul-2005
1.0
2.4
0.1
Aug-2005
1.0
2.4
0.1
Sep-2005
1.0
2.4
0.1
Oct-2005
1.0
2.4
0.1
Nov-2005
1.0
2.4
0.1
Dec-2005
1.0
2.3
0.1
Jan-2006
1.0
2.3
0.1
Feb-2006
1.0
2.3
0.1
Mar-2006
1.0
2.3
0.1
Apr-2006
1.0
2.3
0.1
May-2006
1.0
2.3
0.1
Jun-2006
1.0
2.3
0.1
Jul-2006
1.0
2.3
0.1
Aug-2006
1.0
2.3
0.1
Sep-2006
0.9
2.2
0.1
Oct-2006
0.9
2.2
0.1
Nov-2006
0.9
2.2
0.1
Dec-2006
0.9
2.2
0.2
Jan-2007
0.9
2.2
0.2
Feb-2007
0.9
2.2
0.2
Mar-2007
0.9
2.2
0.2
Apr-2007
0.9
2.2
0.2
May-2007
0.9
2.2
0.2
Jun-2007
0.9
2.2
0.2
Jul-2007
0.9
2.2
0.2
Aug-2007
0.9
2.2
0.2
Sep-2007
0.9
2.2
0.2
Oct-2007
0.9
2.2
0.2
Nov-2007
0.9
2.2
0.2
Dec-2007
0.9
2.2
0.2
Jan-2008
0.9
2.2
0.2
Feb-2008
0.9
2.2
0.2
Mar-2008
0.9
2.1
0.3
Apr-2008
0.9
2.1
0.3
May-2008
0.9
2.1
0.3
Jun-2008
0.9
2.1
0.3
Jul-2008
0.9
2.1
0.3
Aug-2008
0.9
2.1
0.3
Sep-2008
0.9
2.1
0.3
Oct-2008
0.9
2.1
0.3
Nov-2008
0.9
2.1
0.3
Dec-2008
0.9
2.0
0.2
Jan-2009
0.9
2.0
0.2
Feb-2009
0.9
2.0
0.2
Mar-2009
0.9
2.0
0.2
Apr-2009
0.9
2.0
0.2
May-2009
0.9
2.0
0.2
Jun-2009
0.9
2
0.2
Jul-2009
0.9
2
0.2
Aug-2009
0.9
2
0.2
Sep-2009
0.9
2.0
0.2
Oct-2009
0.9
2.0
0.2
Nov-2009
0.9
2.0
0.2
Dec-2009
0.9
1.9
0.2
Jan-2010
0.9
1.9
0.2
Feb-2010
0.9
1.9
0.2
Mar-2010
0.9
1.9
0.2
Apr-2010
0.9
1.9
0.2
May-2010
0.9
1.9
0.2
Jun-2010
0.9
1.9
0.2
Jul-2010
0.9
1.9
0.2
Aug-2010
0.9
1.9
0.2
Sep-2010
0.9
1.9
0.2
Oct-2010
0.9
1.9
0.2
Nov-2010
0.9
1.9
0.2
Dec-2010
0.9
1.9
0.2
Jan-2011
0.9
1.9
0.2
Feb-2011
0.9
1.9
0.2
Mar-2011
0.9
1.9
0.2
Apr-2011
0.9
1.9
0.2
May-2011
0.9
1.9
0.2
Jun-2011
0.9
1.9
0.2
Jul-2011
0.9
1.9
0.2
Aug-2011
0.9
1.9
0.2
Sep-2011
0.9
1.9
0.2
Oct-2011
0.9
1.9
0.2
Nov-2011
0.9
1.9
0.2
Dec-2011
0.9
1.9
0.2
Jan-2012
0.9
1.9
0.2
Feb-2012
0.9
1.9
0.2
Mar-2012
0.9
1.8
0.3
Apr-2012
0.9
1.8
0.3
May-2012
0.9
1.8
0.3
Jun-2012
0.9
1.8
0.3
Jul-2012
0.9
1.8
0.3
Aug-2012
0.9
1.8
0.3
Sep-2012
0.9
1.8
0.3
Oct-2012
0.9
1.8
0.3
Nov-2012
0.9
1.8
0.3
Dec-2012
0.8
1.8
0.3
Jan-2013
0.8
1.8
0.3
Feb-2013
0.8
1.8
0.3
Mar-2013
0.9
1.8
0.3
Apr-2013
0.9
1.8
0.3
May-2013
0.9
1.8
0.3
Jun-2013
0.9
1.8
0.3
Jul-2013
0.9
1.8
0.3
Aug-2013
0.9
1.8
0.3
Sep-2013
0.9
1.8
0.3
Oct-2013
0.9
1.8
0.3
Nov-2013
0.9
1.8
0.3
Dec-2013
0.9
1.7
0.3
Jan-2014
0.9
1.7
0.3
Feb-2014
0.9
1.7
0.3
Mar-2014
0.9
1.7
0.3
Apr-2014
0.9
1.7
0.3
May-2014
0.9
1.7
0.3
Jun-2014
0.9
1.8
0.3
Jul-2014
0.9
1.8
0.3
Aug-2014
0.9
1.8
0.3
Sep-2014
0.9
1.7
0.3
Oct-2014
0.9
1.7
0.3
Nov-2014
0.9
1.7
0.3
Dec-2014
0.9
1.7
0.3
Jan-2015
0.9
1.7
0.3
Feb-2015
0.9
1.7
0.3
Mar-2015
0.9
1.7
0.3
Apr-2015
0.9
1.7
0.3
May-2015
0.9
1.7
0.3
Jun-2015
0.9
1.7
0.3
Jul-2015
0.9
1.7
0.3
Aug-2015
0.9
1.7
0.3
Sep-2015
0.9
1.7
0.3
Oct-2015
0.9
1.7
0.3
Nov-2015
0.9
1.7
0.3
Dec-2015
0.9
1.7
0.2
Jan-2016
0.9
1.7
0.2
Feb-2016
0.9
1.7
0.2
Mar-2016
0.8
1.7
0.2
Apr-2016
0.8
1.7
0.2
May-2016
0.8
1.7
0.2
Jun-2016
0.9
1.7
0.2
Jul-2016
0.9
1.7
0.2
Aug-2016
0.9
1.7
0.2
Sep-2016
0.9
1.7
0.2
Oct-2016
0.9
1.7
0.2
Nov-2016
0.9
1.7
0.2
Dec-2016
0.9
1.6
0.2
Jan-2017
0.9
1.6
0.2
Feb-2017
0.9
1.6
0.2
Mar-2017
0.9
1.6
0.3
Apr-2017
0.9
1.6
0.3
May-2017
0.9
1.6
0.3
Jun-2017
0.9
1.6
0.3
Jul-2017
0.9
1.6
0.3
Aug-2017
0.9
1.6
0.3
Sep-2017
0.8
1.5
0.3
Oct-2017
0.8
1.5
0.3
Nov-2017
0.8
1.5
0.3
Dec-2017
0.8
1.5
0.3
Jan-2018
0.8
1.5
0.3
Feb-2018
0.8
1.5
0.3
Mar-2018
0.8
1.4
0.3
Apr-2018
0.8
1.4
0.3
May-2018
0.8
1.4
0.3
Jun-2018
0.9
1.4
0.3
Jul-2018
0.9
1.4
0.3
Aug-2018
0.9
1.4
0.3
Sep-2018
0.9
1.4
0.3
Oct-2018
0.9
1.4
0.3
Nov-2018
0.9
1.4
0.3
Dec-2018
0.9
1.4
0.3
Jan-2019
0.9
1.4
0.3
Feb-2019
0.9
1.4
0.3
Mar-2019
0.9
1.4
0.3
Apr-2019
0.9
1.4
0.3
May-2019
0.9
1.4
0.3
Jun-2019
0.9
1.4
0.3
Jul-2019
0.9
1.4
0.3
Aug-2019
0.9
1.4
0.3
Sep-2019
0.9
1.4
0.3
Oct-2019
0.9
1.4
0.3
Nov-2019
0.9
1.4
0.3
Dec-2019
0.9
1.4
0.3
Jan-2020
0.9
1.4
0.3
Feb-2020
0.9
1.4
0.3
Mar-2020
0.9
1.4
0.3
Apr-2020
0.9
1.4
0.3
May-2020
0.9
1.4
0.3
Jun-2020
0.9
1.3
0.3
Jul-2020
0.9
1.3
0.3
Aug-2020
0.9
1.3
0.3
Sep-2020
0.8
1.4
0.3
Oct-2020
0.8
1.4
0.3
Nov-2020
0.8
1.4
0.3
Dec-2020
0.8
1.4
0.3
Jan-2021
0.8
1.4
0.3
Feb-2021
0.8
1.4
0.3
Mar-2021
0.9
1.4
0.3
Apr-2021
0.9
1.4
0.3
May-2021
0.9
1.4
0.3
Jun-2021
0.9
1.4
0.3
Jul-2021
0.9
1.4
0.3
Aug-2021
0.9
1.4
0.3
Sep-2021
0.9
1.3
0.3
Oct-2021
0.9
1.3
0.3
Nov-2021
0.9
1.3
0.3
Dec-2021
0.9
1.3
0.3
Jan-2022
0.9
1.3
0.3
Feb-2022
0.9
1.3
0.3
Mar-2022
0.9
1.3
0.3
Apr-2022
0.9
1.3
0.3
May-2022
0.9
1.3
0.3
Jun-2022
0.9
1.3
0.3
Jul-2022
0.9
1.3
0.3
Aug-2022
0.9
1.3
0.3
Sep-2022
0.9
1.3
0.3
Oct-2022
0.9
1.3
0.3
Nov-2022
0.9
1.3
0.3
Dec-2022
0.8
1.3
0.3
Jan-2023
0.8
1.3
0.3
Feb-2023
0.8
1.3
0.3
Mar-2023
0.8
1.4
0.3
Apr-2023
0.8
1.4
0.3
May-2023
0.8
1.4
0.3
Jun-2023
0.8
1.4
0.3
Jul-2023
0.8
1.4
0.3
Aug-2023
0.8
1.4
0.3
Sep-2023
0.8
1.4
0.3
Oct-2023
0.8
1.4
0.3
Nov-2023
0.8
1.4
0.3
Dec-2023
0.8
1.3
0.3
Jan-2024
0.8
1.3
0.3
Feb-2024
0.8
1.3
0.3
Mar-2024
0.8
1.3
0.3
Apr-2024
0.8
1.3
0.3
May-2024
0.8
1.3
0.3
Jun-2024
0.9
1.4
0.3
Jul-2024
0.9
1.4
0.3
Aug-2024
0.9
1.4
0.3
Today, Amex surcharge fees average under 1.35%, down from 2.5%. In comparison, Visa and Mastercard fees have remained relatively stable at 0.85%. The difference on a $50,000 annual spend is now just $180 — or $50 per $10,000.
When you factor in rewards, the extra surcharge is negligible. For instance, Amex's Qantas Ultimate card offers new cardholders 100,000 bonus Qantas points when they meet the minimum spend of $5,000 within the first 3 months, which are worth roughly $2,000 for economy flights or $4,000 for international business class seats. Paying an extra $50 for that kind of reward? Worth it for me!
Myth 2: "Ok, but aren't there heaps of places that don't accept Amex?"
In the early 2000s, this was true. Back then, many businesses avoided Amex due to its higher processing fees. But today, the landscape has changed.
In 2023 alone, American Express added over 180,000 locations across Australia. Thanks to payment platforms like Square, I've used my Qantas Ultimate card at places I never thought it would be possible to: I've bought wildly expensive organic honey at a local market and even swiped my card at my neighbourhood bakery — a place that hadn't accepted Amex in over a decade.
Myth 3: "I know they have high annual fees though."
Most rewards cards – not just Amex, come with a higher annual fee. The average annual fee for a rewards card on Finder's database is $234 — six times higher than the $39 average annual fee for cards that don't offer rewards. For Aussies who want their credit card to work harder, there are usually enough perks to justify the cost.
According to our database, American Express cards do have some of the highest annual fees on average. However, the average is skewed higher by cards like the Amex Platinum, which has an annual fee of $1,450. This card is an exception, designed specifically for high-income earners and big spenders. When we remove the Platinum card, the average annual fee across Amex's range drops from $376 to $242.
American Express also offsets its annual fees on some cards with perks, like the $450 in Qantas Travel Credit on the Ultimate Card, which I used for return flights to Melbourne for two people.
Average annual fees across credit card providers
Average annual fees across credit card providers
Brands
Rewards
Non-rewards
Brand 1
360
50
Brand 2
326
Brand 3
285
53
Brand 4
259
0
American Express*
242
0
Brand 5
237
39
Average
234
39
Brand 6
222
73
Brand 7
185
50
Myth 4: "Don't I need a high income to qualify?"
This is another myth I hear often from younger professionals. While it's true for some Amex cards, such as the Platinum card, there are still plenty of high-earning rewards cards that don't require a six-figure salary.
Take the American Express Ultimate Card for example. It's one of the top Qantas points-earning cards on the market right now. According to Qantas' website, a minimum annual income of $65,000 is required to apply. This aligns with the median annual salary of university graduates in 2023, according to QILT. High rewards cards are more accessible than you might think.
Minimum income on popular rewards credit cards
Card name
Annual minimum income
Qantas American Express Ultimate Card
$65,000
ANZ Frequent Flyer Black
Undisclosed
Westpac Altitude Qantas Black
$75,000
NAB Qantas Rewards Signature Card
Undisclosed
Qantas Premier Platinum
$35,000
Myth 5: "Wait, don't Amex cards have high interest rates?"
This one is partially true. However, before we dive into this topic, it's important to first establish what an Amex card is designed for. Using an Amex card to manage existing debts or cash flow is like using a pair of garden shears to trim your toenails. Neither tool is suited to the task. In the first example you'll lose a lot of money and in the second, you could lose a toe.
You're not entirely wrong if you think Amex cards have high interest rates. However, similar to the myth about annual fees, there isn't much difference between the purchase rates on Amex cards and those of their rewards card competitors.
Average purchase rate (p.a.) across credit card providers
Average purchase rate (p.a.) across credit card providers
Brands
Rewards
Non-rewards
American Express
24.0
17.5
Brand 1
22.5
18.7
Brand 3
21.0
12.0
Brand 5
21.0
9.0
Brand 8
20.7
14.5
Brand 4
20.0
10.5
Brand 6
19.8
17.4
The key is to always pay off your balance in full every month. To ensure you can do this, make sure both of the following are true:
You can meet the minimum spend required for the bonus points offer on your card without exceeding your usual budget.
You have enough savings to fully cover repayments and any unexpected costs.
As we've seen above, many of the old myths about American Express no longer apply. In fact, there is little difference between the major rewards credit card providers' purchase rates, annual fees and income requirements. When choosing a card, focus on what best suits your financial needs and research carefully to ensure your financial decisions are based on facts, not fiction.
Finder's Insights Column examines issues affecting the Australian consumer. It appears weekly on finder.com.au.
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