The American Express Essential Card comes with a range of benefits that are appealing to the mainstream consumer – but not necessarily those that are rewards points-focused. I’d say that rewards points are a benefit of the card, rather than a focus.
The card has no annual fee (as a feature of the card, not an offer) and comes with smartphone screen insurance.
Who’s the American Express Essential Card for?
This card will likely suit those:
- who are averse to cards with high annual fees and are looking for a no or low annual fee card that still earns rewards points
- who may not meet the income threshold for premium credit cards
- where the higher cost of a premium credit card outweighs the benefit of the card’s additional features, due to your income or spending being too low to either use these features or obtain maximum value from them
- those who want to start earning points from their credit card spend with little risk
Digging into the details of the American Express Essential card
Card Details
| Card | American Express Essential |
| Loyalty Program | American Express Membership Rewards |
| Points earned from spend | 1.25 Membership Rewards points earned per $1 on everyday spend, and 1 Membership Rewards point per $1 on government spend |
| Included insurances | Smartphone Screen Insurance, Purchase Protection, Buyer’s Advantage and Refund Protection |
| Overseas transaction fee | 3% of the converted amount |
| Minimum income | $40,000 p.a. |
| Annual fee | $0 |
Effective Frequent Flyer Program Point Earn Rates
| Frequent Flyer Program | Points earned from spend |
|---|---|
| Velocity Points | Up to 0.625 point / $ |
| Singapore Airlines KrisFlyer Miles | Up to 0.625 Mile / $ |
| Cathay Pacific Asia Miles | Up to 0.625 Mile / $ |
Consider this card the little, hipster brother of the Platinum Edge. The card looks very cool, with a neat pearlescent cream and dark blue design that I haven’t seen on any other American Express card globally before.
Earning points with the American Express Essential card
I’ll start with the points angle first. The Essential Card earns points into American Express Membership Rewards.
The transfer rates is 1 Membership Rewards point to 0.5 airline points in Velocity Frequent Flyer, Cathay Pacific Asia Miles, Singapore Airlines Krisflyer and some others.
All frequent flyer program partners have a transfer rate out of Membership Rewards of 2 Membership Rewards points = 1 frequent flyer point, except for Air New Zealand which is 200 Membership Rewards points = 1 Airpoints Dollar and Marriott Bonvoy which is 3:2.
| American Express Membership Rewards Partners | Transfer Rates |
|---|---|
| Asia Miles Emirates Skywards Etihad Guest Malaysian Airlines Enrich Singapore Airlines KrisFlyer THAI Royal Orchid Plus | 2 Membership Rewards point = 1 frequent flyer point |
| Marriott Bonvoy | 3 Membership Rewards points = 2 Marriott points |
| Hilton Honors | 2 Membership Rewards point = 1 Honors point |
| Air New Zealand Airpoints | 200 Membership Rewards points = 1 Airpoints Dollar |
| Helloworld American Express Travel Online David Jones Pay with points Ticketmaster | 20,000 Membership Rewards points = $100 travel reward |
The Amex Essential earns 1.25 points per $1 for utilities, insurance and telecommunications and 1 point per $1 for government spend.
The card is also eligible for Amex Offers, which provide American Express cardholders with rotating promotions and discounts for a variety of products and services, as well as the Local Champion game, where cardholders use the Amex app to earn additional bonus point per $ spent at retailers where they shop the most.
Calm App Offer for American Express Card Members
All American Express Card Members will receive a complimentary year of Calm Premium membership, which is an award winning Sleep, Meditation and Relaxation app, valued at $79.99. In the following year, if Card Members elect to renew, they will receive 50% off the standard rate. Click-through to https://www.calm.com/americanexpressglobal, to sign up for the offer.
Live Date: 26 August 2020
End Date: 31 December 2020
Eligible Products: All American Express consumer cards.
American Express Plan It
American Express launched ‘Plan It’ in mid-2020, which allows cardholders to create instalment plans that allow for equal payments to be distributed over a 3, 6 or 12 month payment period. There is a monthly fixed fee to access this feature, with up to 10 Plan It plans with a minimum of $150 balance able to be created.
Other benefits of American Express Essential
Beyond points, this is where American Express is trying to innovate a little with this card – primarily with the Smartphone Screen Insurance is unique in the market as a credit card insurance offering, and it will cover you for screen repairs up to $500, with a 10% excess on the claim.
For those with slippery fingers or pockets and with no other insurance that would cover this (like your home and contents) then this could be worth a few hundred dollars in case of breakage.
Otherwise, there are also insurances like:
- Purchase Protection – covering breakage or theft of an item up to 90 days after purchase
- Buyer’s Advantage – extending the manufacturer’s warranty on items
- Refund Protection – if you’re refused a refund on an unused item within 90 days of purchase
The PDS of the full set of insurances for the Essential is here.
Half the battle with these insurances is that you have to remember you have access to them as a cardholder when things go wrong, so have a read of the PDS and mentally file them away if you become a card member.
Unparalleled mobile wallet integration
American Express cards support Apple Pay, Google Pay and Samsung Pay, meaning you can use this card on your smartphone for easier payments.
Read the Point Hacks guide to using Apple Pay or for using Google Pay and Samsung Pay, including instructions on how to add your American Express card to those services.
With this feature set up, it means you could still use your NFC-enabled phone to make purchases with your American Express account, even if your physical card is lost or stolen and pending replacement.
Other no annual fee points-earning cards in the market
There are few no annual fee points-earning cards out there (although there are few with low fees, under $100).
As a result, the main alternative product is the American Express Qantas Discovery Card, a no annual fee Qantas point earning card.
The Qantas Discovery Card earns 0.75 Qantas Points per $. This card also have the reduced earn rate of 0.5 points per $ for transactions to Government / Utilities, but neither come with the smartphone screen insurance.
Otherwise, most people looking to maximise their Membership Rewards points earn should look at the Platinum Edge, with it’s pumped up earn rate of 3 points per $1 at major supermarkets and petrol stations.
Summing Up
The Essential card will suit both those who are after frequent flyer and travel rewards benefits, as well as those who are not totally hooked on rewards and frequent flyer points but do want to ensure they are getting some kickback for using their credit card for their everyday purchases.
For the travel reward seeker, the Membership Rewards program has a great selection of airline and hotel partners.
With points available to be used for pay for purchases at David Jones or to offset any charge on your statement, and with Amex Offers on the card as well, there’s appeal to many bargain-hunters who aren’t going to go after all the frequent flyer redemptions out there as well.
American Express also offer Apple Pay integration allowing easy payment for iPhone users, and given the no annual fee, does provide a number of benefits with no ongoing ‘cost’ to hold the card if you’re not carrying a balance on the account.
Assuming one already has an Ascent account, does this then mean you have two separate rewards accounts (just like if you had an Ascent and Ascent Premium account)?