American Express Business Gold Card 2020 Review – Forbes Advisor - Forbes

American Express Business Gold Card 2020 Review – Forbes Advisor - Forbes


American Express Business Gold Card 2020 Review – Forbes Advisor - Forbes

Posted: 05 Oct 2020 05:15 AM PDT

Earning Rewards

Earn 35,000 Membership Rewards® points after you spend $5,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership. Cardholders would also earn 4 Membership Rewards points per dollar spent on up to $150,000 spent each year in two categories your business spends the most in, with options including:

  • Airfare purchased directly from airlines
  • U.S. advertising purchases in select media
  • U.S. shipping expenses
  • U.S. hardware, software, and cloud purchases
  • U.S. purchases at restaurants
  • U.S. purchases at gas stations

After $150,000 is spent on combined 4x bonus points categories each account anniversary year, cardholders will continue to earn at a rate of 1 point per dollar spent, with no maximum limit.

Redeeming Rewards

There are various options for redeeming rewards with the American Express Business Gold Card. Cardholders can redeem points for merchandise, gift cards, or a statement credit on their bill. Although cardholders will discover that redeeming Membership Rewards® points for travel with the American Express Business Gold Card is the best use of points.

There are two ways to redeem points for travel as a cardholder. You can book travel which includes airfare, hotels, cruises, and more through American Express Travel using Membership Rewards® Pay with Points and get 25% of those points back. Up to 250,000 points back per calendar year.

You would need to book any class flight with your selected qualifying airline, or a First or Business class flight to receive the 25% points rebate. Effectively this option would amount to redeeming Membership Rewards® at a minimum of 1.33 cents per point.

Secondly, and potentially even more valuable is the ability to transfer Membership Rewards® points to one of Amex's airline and or hotel travel partners. Points can be transferred to the following 22 partners, including 19 airline partners and three hotel partners:

Airlines

  • Aer Lingus AerClub
  • Aeromexico
  • Air Canada Aeroplan
  • KLM and Air France Flying Blue
  • Alitalia Milemiglia
  • ANA Airlines
  • Asia Miles
  • Avianca Lifemiles
  • British Airways Avios
  • Delta Skymiles
  • El Al
  • Emirates Skywards
  • Etihad Guest
  • Hawaiian Airlines
  • Iberia Plus
  • JetBlue TrueBlue
  • Singapore Airlines KrisFlyer
  • Qantas Frequent Flyer
  • Virgin Atlantic FlyingClub

Hotels

  • Choice Privileges
  • Hilton Honors
  • Marriott Bonvoy

By opting to transfer points, particularly to airlines, it is possible to get elevated value versus paying cash or booking directly through American Express Travel using Membership Rewards®.

As an example, we value Membership Rewards® at 2 cents per point. The transfer rate from American Express Membership Rewards® to Singapore Airlines KrisFlyer is 1:1. The Singapore Krisflyer program provides a desirable award chart for customers, including flights in economy class to Hawaii from Mainland U.S. for only 17,500 miles each way. It is fairly common to find flights from the east coast of the U.S. to Hawaii for $400 or more each way.

By this rationale, if you can find award availability where your points are worth more than 2 cents per point, transferring points is a more viable redemption choice. Remember to compare pricing between the Amex Travel portal and the number of points needed to redeem for the award ticket through the airline's frequent flyer program.

Rewards Potential

To determine the rewards potential of the American Express Business Gold Card, we have to look at how much the business spends on 4x points bonus categories and whether it crosses the combined $150,000 threshold.

For our purposes, we analyze a small business with $10,000 in monthly expenses. We'll assume the following:

  • The business spends $5,000 a month on bonus categories that earn 4 points per dollar spent
  • The business spends $5,000 a month on all other categories earning 1 point per dollar spent

Based on these assumptions, the business would earn points in the first year as follows:

  • 35,000 signup bonus points
  • 240,000 points from 4x categories ($5,000 per month x 4 x 12 months)
  • 60,000 points from 1x categories ($5,000 per month x 1 x 12 months)

In the aforementioned illustration, the first-year point total would be 335,000 Membership Rewards® points earned. If the business wanted to use these points for travel purchases and book directly with Amex Travel, the value of the points would be $4,187.50 thanks to Amex's Pay with Points feature that awards a 25% rebate on points redeemed.

Still, if the business wanted to transfer these points to one of Amex's partner airlines, the 335,000 Membership Rewards® points could be well worth more than $10,000. A small business owner may not generate those types of monthly expenses but if the majority of the purchases fall within the 4x bonus categories, they can still produce robust rewards potentially worth thousands of dollars towards travel.

10 high-end redemptions I can’t wait to make when travel resumes - The Points Guy

Posted: 02 Oct 2020 12:30 PM PDT

10 high-end redemptions I can't wait to make when travel resumes

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Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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