CommBank has announced that it will stop issuing American Express credit cards. In an update on its website, it states that it will cease issuing new cards as from September, and cancel existing cards in November.
In doing so, it becomes the last of the big four banks to withdraw their American Express companion cards. ANZ, NAB and Westpac have all previously withdrawn their companion cards. As a result, from November, American Express cards will only be issued directly through American Express.
However, unlike Westpac, they have not arranged for an alternate directly issues card.
Timeline
The changes being made affect all CommBank issued American Express cards.
CommBank will no longer offer new American Express cards from September 1 2018. If you want one, you will need to have received final approval before September 1. If you do not receive this approval by then, you will only receive a Mastercard®.
For holders of a CommBank American Express card, the card will be closed from November 1. From that date, CommBank will be declining most transactions made on the card. But beware, if such a transaction occurs, it will not earn Award Points. In addition, for international spend, an international transaction fee will apply.
Account Changes
Apart from the removal of the American Express companion cards, there will be few other changes to your credit account. Your Mastercard or Visa card will continue to work, and indeed, this will be your only option.
CommBank have not advised any other changes to points earning. The annual fee will be remaining the same.
A significant downside for some will be the loss of access to various American Express benefits. For example, access to the American Express lounges in Melbourne and Sydney will no longer be available. Additionally, CommBank cardholders will lose access to the American Express connect cashback offers.
Where to?
The main advantage of the companion cards were that they offered greater rewards than the standard Mastercard or Visa. As a result, cardholders without an American Express card will have to apply directly to American Express for a card.
American Express offer a range of credit cards with differing benefits. The most suitable card will depend on your individual circumstances.
Qantas Frequent Flyer members may wish to consider the Qantas American Express Ultimate card. This offers up to 1.5 Qantas Points per dollar spend. It does come with a $450 annual fee, but this is offset by an annual $450 travel credit.
Alternatively, if you want to be more flexible with your points earning, the American Express Explorer card could be useful. With this card, you can earn the equivalent of 1.5 points per dollar in a range of frequent flyer programs, such as Velocity, Asia Miles, KrisFlyer or Enrich.
