Overview
American Express Membership Rewards credit card, usually known as AmEx MRCC, is an entry-level card in the American Express product line but outperforms various super-premium cards in terms of rewards when used wisely. The card comes with a low renewal fee waiver criteria. Also, it has a progressive partial fee waiver slab, unlike other cards.
Fees
| Joining fees | Rs. 1000 + GST (Free: Offer link) |
| Annual fees | Rs. 4500 + GST (Rs. 1500 + GST : Offer link) |
| Fee Waiver Criteria | Annual spending of Rs. 1,50,000 and above |
| Partial Fee Waiver | Spend between Rs. 75,000 – Rs. 1,50,000 for a 50% fee waiver |
| Joining benefits | 4000 Membership Rewards® points on paying to joining fees |
Rewards
As the name suggests, this is a rewards card positioned as an entry-level card in the American Express product line with rewards linked to low spending targets.
| Basic rewards | 1 Membership Reward (MR) point / Rs. 50 |
| Accelerated Rewards | 5x MR points on the AmEx reward multiplier portal (Similar to HDFC smartbuy) |
| Reward point (MR) value | 0.5% on cash credit / ~1.2% on Taj voucher / ~0.75% Amazon/Flipkart voucher |
| Monthly bonus | 1000 MR points on spending Rs. 1500 and above 4 times per calendar month |
| Monthly Milestone | 1000 MR points on spending Rs. 20000 or more per calendar month |
| Excluded Categories | Fuel, Insurance and Utilities |
Redemption is the tricky part about the American Express membership rewards credit card. The above-mentioned rate only holds once you have achieved the 24,000 membership reward points milestone. This slab is known as a 24 Karat slab. Between 18,000 and 24,000, there is another slap known as 18 Karat, giving a lower value of membership rewards points.
| No. | Transaction Type | Monthly Spends | Default rewards | Monthly Milestone reward points | Total Monthly reward points | Yearly Spends | Yearly points |
|---|---|---|---|---|---|---|---|
| 1 | Transaction of Rs. 1500 and above 4 times per calendar month | Rs. 6000 | 120 | 1000 | 1120 | Rs. 72,000 | 13,440 |
| 2 | Transaction value of Rs. 20000 and above per calendar month | Rs. 20000 | 400 | 1000 | 1400 | Rs. 2,40,000 | 16,800 |
| 3 | Best case: Rs. 1500 four times and 14000 in parts or full | Rs. 20000 | 400 | 2000 | 2400 | Rs. 2,40,000 | 28,800 |
As mentioned in the table above, a decent spend of Rs. 2,40,000 per year gives a reward of 28,800 Membership Reward (MR) points, equivalent to Rs. 14,400 when used as a cash credit against statement giving a decent cashback of 6%. This amount of spending makes the card eligible to redeem from 24 Karat collection, which has a higher per-point value.
Also, when these Membership rewards (MR) points are redeemed against Taj vouchers, the calculation shows a reward rate of 7% (Voucher worth Rs. 16,800 for 28,800 points).
Here, spending low on an American Express membership rewards credit card is beneficial, as given in case number 1 in the table above on spending Rs. 72,000 / year earns 13,440 membership rewards points. In 18 carat collection, 18,000 MR points are equivalent to a Taj voucher worth Rs. 9000. Hence 13,440 would be equivalent to Taj vouchers worth Rs. 6,720. Thus a reward of RS. 6,720 on spends of Rs. 72,000 comes out to 9.3%.
Membership Rewards (MR) points on American Express membership rewards credit card don’t expire.
Lounge
There are no lounge benefits on American Express Membership Rewards Credit Card.
Check lounge access in your existing cards from here.
Benefits of American Express membership rewards credit card
- Add-on cards: 2 supplementary add-on cards without documentation and offers like milestone point benefits and spend-based annual fee waiver can be achieved faster.
- 3.5% + GST Forex Markup fees on American Express membership rewards credit card.
- Insurance offers: American Express partnered with ICICI Lombard to sell customized insurance products to AmEx card holders. This tailor-made health insurance plan offers benefits like gym, specs and swimming bill reimbursement. (Check Now)
- American Express is known for its superior customer support.
- Emergency card replacement.
- Reward multiplier: just like smart buy in HDFC and edge rewards in Axis Bank, American Express has its reward multiplier platform wherein cardholders can earn up to 5X reward points. (Check Now)
- American Express has a unified system around the world. This means repayment and usage history of American Express membership rewards credit card in India would be considered if one plans to settle abroad.
Final Thoughts
American Express Membership Rewards Credit Card (MRCC)
Summary
Being an entry-level card targeted at low-income groups may face difficulties due to low acceptance of American Express at merchants. When the American Express membership rewards credit card is used wisely, the card can give a statement credit of 6% and vouchers worth 9%, which outperforms various rewarding, super-premium cards like Standard Chartered Ultimate credit card or HDFC Diners / Infinia credit card. The only card that can come closer in terms of flat reward structure is the SBI cashback credit card which also has lounge benefits.
Pro Tips
- Monthly milestone benefits can also be achieved on wallet loads which can be used almost anywhere (Fuel included).
- The monthly milestone benefit is only eligible for those who have enrolled. (Enrolment Link).
- Currently, American Express issues cards in a few cities, so it’s better to check before applying for American Express Membership Rewards Credit Card as it instantly makes a CIBIL enquiry.