Update: The consumer Platinum “family rule” terms are now appearing on the Schwab Platinum card, meaning that you are no longer eligible for a welcome offer if you have previously held any of the consumer Platinum cards (regular, Schwab or Morgan Stanley). This makes the new rules much more restrictive than we originally thought. Currently, Morgan Stanley Platinum applications do not have these terms and we’ve heard several DP’s of folks being able to successfully apply when holding one of the other two. We don’t know if that’s permanent or if all three cards will be eventually have these new terms. Original post follows.
American Express just can’t keep itself from fiddling around with its flagship Platinum card. This time, instead of adding another (excessive) monthly credit, Amex has changed several of the terms for the regular consumer Platinum card, the Charles Schwab Platinum card and the Morgan Stanley Platinum card. These affect authorized user cards, minimum spend, the Platinum wireless credit and more. Let’s take a look at what happened and what it means for cardholders.
Cards Affected
| Card Offer |
|---|
80K points ⓘ Non-Affiliate 80K after $8K spend in first 6 months. Terms apply. (Rates & Fees)$695 Annual Fee This card is only available to clients that maintain an eligible Schwab brokerage account. Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy. Recent better offer: 100K points + 10x when you Shop Small in the US & at restaurants worldwide [Expired 1/20/22] |
80K points ⓘ Non-Affiliate 80kK after $6K spend in first 6 months. Terms apply. (Rates & Fees)$695 Annual Fee Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy. Recent better offer: 125K points after 6k spend [Expired 11/8/23] |
100K Points + 10x on Dining ⓘ Non-Affiliate 100K after $8K spend in 6 months plus 10x at restaurants for first 6 months (up to $25K max spend). Terms apply.$695 Annual Fee Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy. Recent better offer: 150K after $6k spend (referral only, expired 10/23) |
150K points ⓘ Friend-Referral 150K points after $15K spend in the first 3 months. Terms apply. (Rates & Fees)$695 Annual Fee Alternate Offer: Targeted online offer of 170K points after $15K spend in the first 3 months See this post for details.Targeted online offer of 120K points after $15K spend in the first 3 months + 10x at office supply and hardware stores up to $7500 in spend See this post for details. Information about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy. |
What’s Changed
- Platinum cardholders used to be able to add up to three authorized users (AU) for $175/year. Now, AU cards cost $195/year, each. The Morgan Stanley Platinum card continues to get 1 AU per year for free.
- All consumer Platinum cardholders can still add an authorized user as a stripped-down Gold card for free. That continues, but it’s been renamed a “Companion Platinum Card.” There doesn’t appear to be any changes to the functionality of the AU card. Similarly, free Green AU cards on the Business Platinum have been renamed to “Additional Business Expense Card.”
- The minimum spend required for the welcome offer on the consumer Platinum is up 33% to $8K (from $6K) over the first six months. This includes the 100K Resy Platinum offer that we list on our Best Offers page. Both the Schwab and Morgan Stanley Platinum’s minimum spend is unchanged at $6,000.
- All three of these cards have always been considered separate products when it came to eligibility for welcome offers. That’s no longer the case, as the consumer and Schwab Platinum now have terms which state that previous or current cardholders of any of the three Platinum cards are ineligible for a new cardmember bonus. Morgan Stanley applicants continue to be eligible for a welcome offer whether or not they have the consumer or Schwab Platinum cards. This may change, however.
- Starting October 1st, Audible is no longer on the list of eligible services that can be paid for with the Platinum’s $20/month “digital entertainment” credit. In its place is the Wall Street Journal.
Quick Thoughts
In my mind, by far the biggest (and most negative) change is regarding authorized user cards. Previously, all Platinum cardholders could add up to three authorized users for only $175/year. Those authorized users then received all of the lounge and elite status benefits that the card offers, including access to Priority Pass Lounges, Centurion Lounges, Delta SkyClubs and Gold status with Hilton and Marriott. If you added three folks, all that would cost ~$58/year per AU, a bargain compared to the out-of-pocket cost. This became especially salient once Amex gutted the Centurion Lounge guesting rules, effectively requiring that each person wanting to enter has their own Platinum card or pay $50 to visit as a guest. Now, folks maxing out the previous three AU rule go from paying $175/year to $585/year.
That’s a massive jump, especially when compared to its competitors: Capital One Venture X cardholders get to add four authorized users for free and Chase Sapphire Reserve authorized users can be had for only $75 (with primary rental car insurance). Admittedly, neither of those cards offers SkyClub or Centurion Lounge access and this feels like another battle in Amex’s (and Delta’s) war on overcrowding at those lounges, a significant problem that’s become almost laughable in Delta hubs and large airports. I’m not certain how many folks are accessing these lounges via AU cards, but I imagine Delta and Amex do and it’s not trivial.
These changes also make the free AU card on the Morgan Stanley Platinum slightly more valuable. However, if you were only paying for one AU to begin with, the $20 increase in what you’re saving probably doesn’t move the needle. It’s folks with 2-3 AU’s that are going to feel the pain the most.
My hunch is that the rest of the changes will affect less people. I’m sure that many folks (including my wife) will lament the loss of credits for Audible. On the flip side, many others will probably love Wall Street Journal access (although I’m sure less will be excited about access to both the WSJ and the NY Times). The change in churning rules is probably fairly benign as well, given that the vast majority of Platinum cardholders enter the ecosphere via the consumer Platinum as opposed to one of the investment cards. For those that did start with either the Schwab or Morgan Stanley, the change kills most or all of the appeal of getting the consumer Platinum. Update: As we mentioned above, these new churning rules are much more severe than we initially realized and now apply to both the Schwab and “vanilla” Platinum cards, meaning that, at best, folks are only eligible for welcome offers two Platinum products, including the Morgan Stanley card. If that card falls under this “family” umbrella as well, it will reduce the entire consumer Platinum side down to only one possible welcome offer. Yuck.
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