So I was looking for a nice hotel to stay in for my next trip to Florida. I found this nice Wyndham at Deerfield Beach. As I pulled up the rate, I noticed a special for a three night stay of 30% off. “What luck” I thought, we will be staying for three nights and we can take advantage of this fantastic savings.
Take A Look At Expedia’s Offer:
Back in late 2009, I told you about the US Airways promotion where you could essentially miles at about .5 cents each. Myself and others I know spend thousands of dollars ing hundreds of thousands of miles. While I had used a few miles here and there in the past, I finally got around to planning a fantastic trip with the hundreds of thousands of miles I had left.
US Airways Doesn’t Make It Easy
If you want to redeem your miles for a domestic or international award entirely on flights operated by US Airways, you can search for it and book it fairly easily on their web site. That said, they use a three tiered award system with the “Low” awards being extremely scarce. It is easy to find entire months with now “low” awards on a particular route. The real value of the miles is booking a partner award, but it is very hard to do so. They do not have an online booking tool, so you have to call them up. Consider that there are over a dozen members of the Star Alliance, there are hundreds of combinations of dates and flights that can get you to your destination. At the same time, the people at US Airways really do not have any effective tools to search for those flights. If you leave the searching to them, they are likely to try a few combinations, tell you there is nothing available, and give up.
The Key To Finding Award Space
As a frequent traveler, and a consumer advocate, I have to applaud when I read about any new government action to crack down on airline’s habitual abuse of consumers. This week, the Department of Transportation issued new rules restricting airline practices. While the rules have made for some great headlines, a close examination reveals there are many compromises to the industry.
Let’s Take A Look
I often think of secured credit cards as the perfect hybrid between a debit card and credit card. Like a debit card, you cannot go into debt; You are only allowed to spend what you have in your account. Like a credit card, you still receive rental car insurance and chargeback protection in case you do not receive the goods or services you paid for.
Everyone Should Qualify For A Secured Card, But…
You would think that there is little risk to banks when they offer a secured credit card. Like a gift card or a cash card, you would think that anyone would qualify. This article in today’s New York Times points out that people who have recently discharged a bankruptcy are actually getting denied secured credit cards. For example, Bank of America and Wells Fargo both require that applicants for their secured credit cards be out of bankruptcy for at least a year. Other banks reported acceptance on a case by case basis. Capital One and HBSC will accept anyone unless a background check brings up other major discrepancies.
Why This Is Important
For years now, Americans traveling abroad have felt like they were visitors from a third world country on occasion when they tried to use their credit cards. That was because European banks have been issuing more advanced credit cards equipped with microchips that add an additional layer of authentication. These systems were often put in place at unattended machines in train stations and gas stations. With the chip, American cards simply weren’t recognized, and frustrated travelers were told to seek out attendants. You can just imagine the fun of trying to communicate with a gas station attendant in Slovenian when you are out of gas and your credit card does not work.
Wells Fargo Gets In The Game
In the high end credit card market, the Citi Charman Card and the Visa Black card share the same price range in terms of annual fees. The Citi Chairman American Express Card will set you back $500 a year, while the Visa Black is only slightly less expensive at $495. Let’s see how they compare:
American Express recently came out with a prepaid card for teenagers to use and learn to budget their needs with wants. Parents are able to transfer funds on a monthly or weekly basis for their children’s allowance.
Signing up for the PASS card is relatively easy. All you need to do is go to American Express website and click on the button for set up account under the parent section. Once this is done, you can also click the link for log in, in the future to review the account. As shown, teens can also log in to verify their account balance and make sure they don’t go over what they have available.
Once you have logged into your account, you will be able to confirm your information is correct. Name, telephone number and email address. I will also provide you with your current balance available on the card:
This card can be used anywhere that American Express is used. However, if your teenager drives, they cannot use the card at the pump. They will need to take the card into the store to purchase gas. Withdrawals can also be made, but there is a transaction fee when using the ATM of $1.50. There is a monthly service charge of $3.95.
You can also set up text message alerts for this card. From their site:
Text messaging alerts are a fast and easy way to keep track of your account. You can get your balance via text message and be notified when a purchase is made, when funds are added, when a merchant declines a transaction, and when your Card balance drops below $10.
The card comes in four different colors. Orange, Blue, Green and Pink. You can include your childs picture on there if you want. If the card happens to get lost, the replacement card will not have a picture on it.
I think this is a great card for teenagers to have on hand instead of carrying too much cash around. I was actually able to review this card for American Express on my own personal blog Single Parent Retreat and found the experience very pleasant.
Visa also offers a prepaid card for teens to use called the Visa Buxx. Like the Amex PASS card, parents load the money to the card, teens use it for every day things out with their friends or emergencies and both the parents and teens can log into the account to see what their spending habits are.
From Visa’s page, here is a great list of the benefits for both parents and teens for the Visa Buxx card:
Benefits to parents
– Powerful financial education tool because Visa Buxx helps your teen learn budgeting through managing the prepaid amount on the card.
– Parental control with online tracking of purchases and spending limits, making it easy to address financial responsibility.
– Safer than cash because if it’s lost or stolen, you are protected. You’ll pay nothing for unauthorized purchases.
– Peace of mind in case of emergencies, while your teen is traveling, or for everyday errands.
– Convenient alternative to running to the ATM every time your teen needs money.
Benefits to teens
– Independence to make responsible purchases without having to borrow a credit card or carry lots of cash.
– Flexibility to use it everywhere that accepts Visa debit cards.
– Smarter than cash because Visa Buxx enables teens to learn about financial responsibility and managing their own budget.
– Security because only the teen can use the card, and online account information is password protected.
– Always the right gift because parents can authorize family or friends to put money on the Visa Buxx card. It’s faster and safer than mailing a check or giving cash
You can sign up for the Visa Buxx card at one of five different locations online. They are Pay Jr, Sandy Spring Bank, Wachovia, US Bank and Navy Federal. You do not have to have an account at any of these locations. Each bank has their own terms as to what fees may be for either the monthly service charges or ATM withdrawals. For example, Wachovia charges a $12.00 set up fee. There is a $1.50 transaction fee for ATM withdrawals. There doesn’t seem to be a fee for monthly services, but, after six months of inactivity, there will be a $2.00 charge per month. US Bank does not charge a monthly charge. There is a $1.50 charge for ATM Withdrawals. $1.50 for Account balance checks at ATM, where it was only .50 with Wachovia. You can see their terms HERE.
There are many options to obtain cards for teens anymore and consumers definitely need to go with what they prefer. In my opinion, I’d probably stick with the Amex PASS card just because of the options you have in making the card your childs. Yes, there is a $3.95 monthly charge, but, having 24 hour access to customer service is worth it to me. For other perks with the PASS card that you may not have with the Visa Buxx card, click HERE.
A reader recently asked about the best reward travel credit card for vacation flights from his home in Seattle to Veracruz, Mexico
What are the best credit cards (no annual fee or “small” annual fee) to get Flights reward?
I’m not a frequent flyer. The flights are for vacations. Currently I have Bank of America WorldPoints and I think it is a good program. I have had them since it used to be MBNA credit card.
Mr. Credit Card: Where do you live and fly to?
Reader: USA to Mexico
Mr. Credit Card: What airlines do you fly?
Reader: Continental,Delta, and United Airlines.
Mr. Credit Card: How much is your average cost per ticket?
Reader: Approximately $700.00
Mr. Credit Card: Do you pay any baggage fees?
Yes.Reader: I currently spend from 35,000 to 55,000 point to get an international flight from Seattle to Veracruz Mexico plus a $30.00 USD PER ticket as transaction fee.
The World Points web site is nice and you can pick from any airline. The option to pay tickets with money is also available and the price very similar to Expedia.
Maybe I’m looking for a credit card that requires less points to get international fligths and/or gives you more point. (World point $1.00 = 1 point).
Thank you.
What Should he Do?
Last week, there were was an announcement from a company called Isis, that wishes to add some technology to your cell phone in order to allow you to make payments. My first reaction to this news was to run screaming at the thought of my phone company attempting to collect payments on behalf of merchants. I first rang the alarm on this subject a few months ago, when Apple proposed such a system. Later, I revisited this subject in the context of an example of phone companies practically encouraging merchants to fraudulently bill their customers.
Isis May Be Different
Update – Amex is in the midst of updating their Platinum Card. The features mentioned here may not be updated as of now. We will post updates when we get the new information.
The American Express Platinum Card has been catering to the high net worth crowd for a while. It’s success has prompted rivals from within, such as their Centurion Card, as well as competitors from other networks. The Visa Black card from Barclay’s bank is among the more recent cards that seek to emulate the American Express Platinum’s appeal at the high end of the market.
Black vs. Platinum Is Not Apples To Apples
As we will see, the Visa Black card is a vastly different product than the American Express Platinum. Let’s take a look at how they stack up:
| Features | Visa Black | Amex Platinum |
| Type of Card | The Visa is a standard credit card. You are free to carry a balance at their standard interest rate, 14.99%. This rate more than doubles to their “penalty rate” of 30.24% if you should miss a payment. | The Amex Platinum is a charge card. As such, you are always expected to pay all balances in full and on time. In essence, carrying a balance is the same as being in default, and the penalty rate is always applicable. |
| Rewards Program | They offer a 1% cash back as a statement credit towards any expense. They do offer airline ticket awards for 25,000 points for tickets up to $500 in value. | Platinum card holders are enrolled in their Membership Rewards program. This program features mileage redemption options with several major airlines. In addition, there are numerous hotel, car rental, dining, gift card, and shopping redemption options. Redemption rates are typically 1 cent per point. |
| Concierge Services | Visa provides a 24 hour concierge services for personal, business, and travel needs. | American Express offers a concierge services ranging from restaurant reservations and gift recommendations, to event planning. |
| Special Card | Visa Black offers a unique, carbon fiber card. | American Express offers a standard, plastic card that is platinum colored. |
| Airport Lounge Access | Visa Black offers membership in the Priority Pass program. You get four annual complimentary entries into a member lounge, and then you must pay $27 per visit. | American Express Platinum offers Priority Pass as well, but they also include American Airlines Admiral’s club, Delta SkyClub, US Airways Club and Continental Airlines club access. |
| Companion Airline Tickets | Visa Black does not offer any companion tickets at this time. | American Express Platinum offers unlimited companion airline tickets for full fare, international, business and first class tickets. |
| Airline Fee Credits | Visa Black does not offer any airline fee credits at this time. | American Express Platinum offers $200 annually towards any non-ticket purchase from an airline. |
| Foreign Transaction Fees | Visa Black has a 3% foreign transaction fee on all purchases processed outside the United States. | The American Express Platinum recently dropped it’s foreign transaction fees. |
| Acceptance | Visa Black is accepted anywhere the Visa card is. | The American Express Platinum is only accepted where American Express is. There are many occasions where Visa is accepted and American Express is not. |
| Complimentary Gifts | The Visa Black card offer’s its members complimentary luxury gifts such as cross pens. | American Express Platinum has no complimentary gift program. |
| Annual Fee | The Annual Fee for the Visa Black is $495 | American Express Platinum has an annual fee of $450 |
| Other Significant Amenities | Visa Black offers trip delay, interruption, and cancellation insurance. | American Express Platinum offers a free membership in the Global Entry system |
| American Express Platinum offers $200 annually towards any non-ticket purchase from an airline. |
In contrast, the Amex Platinum has 2 ways to get free airline tickets. You can transfer points to Membership Rewards Airline Partners. If you are savvy enough, you should be able to get more than 2% rebate equivalent. If you decide not to transfer points, then you can use Amex online travel booking system (powered by travelocity) to book your travel. There you are getting 1% return (100 points for $1 in ticket value).
One is not necessarily better than the other, but they are both different and each method could be better under different circumstances.
Elite Hotel Membership – Card members of the Platinum Card automatically become Starwood Preferred Guest Gold members. This is such great feature because on the occasion where you stay at Starwood Hotels, the Gold membership could help in terms of upgrades.
Car Rental Memberships – Platinum Card members can get memberships at three car rental companies. At hertz, you are entitled to a Gold membership which is worth $60 a year and certainly helps when you arrived at an airport at midnight and could just get your car in the lot! You are also entitled to preferred membership with Avis and National Car Rental.
Fine Hotels and Resorts – This is one of the great and under-rated features of the Platinum Card. How many hours do you take to do research on hotels? Well, if you simply choose a FHR at the place where you are going, you will save a lot of time doing research, get a room upgrade, complimentary continental breakfast and a $100 credit (which I have used at spas!).
Cruise Privileges – Book a cruise with Amex Platinum and you get a $300 stateroom credit or a 2-category room upgrade.
Annual $200 Airline Credit – With the Amex Platinum card, you can choose an airline and apply $200 of credit in a year on items like baggage fees, food you on the airline etc.
US Custom Global Entry – Platinum Card holders will get credit if they apply to be on the US Custom Global Entry program. If you are, you can avoid the long immigration lines when you return from an international flight!
No Foreign Transaction Fee – The Platinum Card has recently waived any foreign transaction fee when you use the card outside of the US. The Visa Black Card charges 3% FX transaction fee.
International Companion Ticket Program – Amex Platinum has an international companion ticket program whereby if you purchase an international business class ticket with their partner airlines, you can get a free companion ticket. The Visa Black Card does not have any companion ticket program.
Private Jet Program – Platinum Card holders get extra benefits when they use Amex Travel to charter or get fractional or ownership of private jets for travel.
Platinum Destinations – Amex has also teamed up with upscale travel agents like Abercombie & Kent to offer exclusive vacations to exotic places. When you book such vacations with Amex, you get 25,000 bonus membership reward points.
Which Card Comes Out Ahead?
Both cards to a respectable job of catering to high end customers who desire concierge services. Visa has always been accepted at more places than American Express, and the Visa Black card does include an impressive array of travel protection benefits. It must be nice to receive luxury gifts from time to time as well. Some people may appreciate the tangible difference of the carbon fiber card itself, but it provides no monetary advantage over traditional plastic.
American Express still holds the edge in several key areas. Their Membership Rewards program is more full featured, there is no foreign transaction fees, and cardholders are granted unlimited complimentary access to several major airline clubs, not just the limited Priority Pass program. Furthermore, Amex’s $200 airline fee credit and their Global Entry membership goes a long way in justifying American Express’s slightly lower annual fee. Using their Fine Hotel and Resorts about 2 or 3 times a year will enable you to recoup the annual fee as well.
Which Card Should You Get?
There is no way to directly compare the concierge services offered by the two cards, which are at the heart of the reasons to own such exclusive cards. Neither of these cards is targeted at the typical user who values high rewards or low interest rates. The ideal customer of one of these cards is someone who values an exclusive range of services over other mundane details. By most objective measures, the American Express Platinum seems to offer more amenities and fewer fees than the Visa, but there is one thing you are never allowed to do, carry a balance. With the largest merchant network in the world, Visa Black may be the leading credit card, with American Express continuing to retain the title of the premier charge card (short of their ultra high end Centurion card).
Mr Credit Card Final Note – I personally have the platinum card and would not trade it at all for the Visa Black Card because just by signing up for the Card Rental elite memberships (which I use a few times a year), and booking a couple of “FIne Hotel & Resorts” hotels with Amex, I’ve basically covered my annual fee. Since I travel internationally once a year or tow, the fact that this card has no FX fees, and the new US Custom Global Entry credit and $200 annual airline amenities credit make a whole difference for me.
