American Express is introducing points changes to one of its most popular cards.
The credit card company said that in the coming months, the Amex Cobalt card will cut its travel purchase points in half.
Under the current points system, the American Express Cobalt Card earns up to five points per dollar spent and comes with a $12.99 monthly fee, with a minimum possible return of 1% and a maximum possible return of 5%.
American Express
It also offers several perks and benefits, including mobile device coverage, 1:1 points exchange with most global frequent flyer programs, shopping coverage, and several hotel perks.
The Cobalt card also features impressive cashback rewards:
- 5x points on dining out
- 3x points on streaming services
- 2x points on travel and transit
- 1x points on all other categories
However, the company has announced that as of October 8, 2024, the Amex Cobalt, “which previously earned two points for every $1.00 will now earn one point for every $1.00 in eligible Travel purchases.”
American Express said the card will continue to earn two points for every $1.00 in eligible gas stations and transit purchases.
“This card remains one of the most competitive cards available to Canadians, with an exceptional earn rate and versatile redemption options,” an American Express media representative told Daily Hive via email.
According to Rewards Canada — a Canadian credit card resource website — Amex may have implemented the change to “differentiate between [its] card products.”
“The Cobalt Card is marketed as a lifestyle card whereas the American Express Gold Rewards Card and The Platinum Card are marketed as travel cards, yet all three cards have the same earn rate for travel at 2 points per dollar,” it noted.
Rewards Canada stated that the Gold Rewards Card has often “lived under the shadow” of the Amex Cobalt and “required something to bring it back into the light.”
With files from Christopher Liew