Tuesday, October 26, 2010

American Express Gold Rewards Card Review

This is part 3 of a 3 part series on the American Express Gold Rewards Card sees me give the card the full on Rewards Canada review process! As you may recall, American Express has asked me to test drive this new card and in return they offered me 50,000 points to experience the earning and redemption process with the card. This is first time we have been able to do a review on a card while we have actually used it and not just on what the card claims on paper. Below you will find the complete review of the card as seen on the main Rewards Canada site.

At the beginning of October American Express Canada re-launched their American Express Gold Rewards Card. This reincarnation of American Express' flagship charge card takes the best features of its competitors and puts them into one package. The card falls into the hybrid travel rewards card category which means you have the option of using the points for any travel booking or you can choose to convert the points to frequent flyer miles and frequent guest points.

Overview
The American Express Gold Rewards Card provides an excellent insurance and benefit package that is similar to its primary competitors. The card features a good earning ratio that meets and in some cases exceeds other hybrid and travel points cards like TD's First Class Infinite Visa and RBC Infinite Visa Avion because of the double points earned on certain everyday spending. It has an industry average sign up bonus and is fee free for the primary and all supplementary cards in the first year.

Costs
The American Express Gold Rewards Card comes with a $150 primary card annual fee that may seem higher then its competitors but the first supplementary card is free in comparison to the $50 or so seen on other cards. A nice benefit is that the $150 annual fee is waived in the first year of membership. The card offers a 15,000 Membership Rewards point welcome bonus when the new Cardmember spends $500 in the first three months. Additional cards over and above the first free one are $50 (although once again this fee is waived in the first year) which is roughly the same as many of the card's competitors. Since the Gold Rewards Card is a charge card it technically does not have an interest rate like its credit card competitors but should the cardholder miss a payment or not pay off the balance American Express charges a 30% non-revolving annual interest rate.

Earning
The American Express Gold Rewards Card earns 2 Membership Rewards points for every dollar spent on the card for travel, grocery, drugstore and gas station purchases. For all other purchases the card earns 1 Membership Rewards point per dollar spent.

Redeeming
On the redemption side, the Membership Rewards points earned with the American Express Gold Rewards Card can be redeemed for any travel from any provider or they can be converted to frequent flyer miles and frequent guest points. The first option which American Express calls TripFlex, allows the Cardmember to book any travel from any provider they want, be it a travel agency, online booking engine or directly from an airline, hotel, train, car rental company and more and then call Amex to redeem their Membership Rewards points against the charge on their statement. The rate of redemption for the TripFlex option is 1,000 points for a $10 credit with a minimum redemption of 1,000 points. Cardmembers have up to 12 months from the date of travel purchase to redeem points and can use them to pay for only part of the purchase should they choose. The second option of this hybrid card is to convert the Membership Rewards points for frequent flyer miles or frequent guest points. For most Canadians their primary frequent flyer program is Aeroplan and this card offers a 1 to 1 redemption rate on conversions to Aeroplan. Other airlines offered are Alitalia MilleMiglia, British Airways Executive Club, Cathay Pacific Asia Miles, and Delta SkyMiles. For all of these other airlines 1,000 Membership Rewards points will net 750 miles in the respective program. For hotel programs, Cardmembers can convert to three frequent guest programs: InterContinental Hotels Priority Club (1,000 MR points = 800 Priority Club points), Hilton HHonors (1,000 MR points = 900 HHonors points) and Starwood Preferred Guest (1,000 MR points = 500 Star points). Beyond these two main redemption options Membership Rewards points can also be redeemed for American Express Travellers Cheques, gift cards and merchandise.

Features and Benefits
As stated above the American Express Gold Rewards Card comes with an insurance package that competes with all the other high end cards. The card features your standard travel accident, baggage and car rental insurance that are found on almost all fee based rewards cards but it also includes some that are only found on a few select cards. These include, trip interruption insurance, hotel/motel burglary insurance and travel medical insurance

The card also American Express' Front of the Line Service which provides advanced ticket and reserved ticket access to some of Canada's most popular events.

What is good about this card
The earning ability of 2 points per dollar for travel, gas, grocery and drug store spend means that cardmembers, particularly those who travel a lot, will be able to earn points at a much faster rate then many of this card’s competitors. Being totally fee free the first year is a nice perk and by not charging for the first supplementary card each year thereafter actually makes this card cheaper to own over other cards. With a one to one redemption to Aeroplan, the card is also one of the highest earning Aeroplan cards on the market when you take into account the 2 points per dollar feature. A good insurance and benefit package means the cardholder is well covered when travelling in Canada or abroad.

What is not so good about this card
There are only a couple of minor details which may keep some people from getting this card. The first is that it is a charge card, for anyone who runs a balance, this card is not for them as the balance has to be paid off every month. Second, some may say that American Express is not widely accepted like its competitors and while this may be true the current trend has more and more merchants accepting American Express everyday. Third, for some people who travel a lot, the lack of Trip Cancellation insurance may push them to a card that offers this benefit and the peace of mind should they get sick, have a death in the family or lose their employment.

Conclusion
By combining the best features from many of its competitors, the American Express Gold Rewards Card as a whole is a great card. I have had the card in my wallet for a little over two weeks at the time of writing and have used the card quite a bit, particularly on gas and grocery spending and plan on continuing to use it as it will replace my American Express Blue Sky credit card. The card will definitely shake up our Top Travel Rewards Credit Card rankings for 2011 in the Hybrid card category. The higher earning ability, the vast redemption options including the ability to book travel yourself and a nice benefit package make this an above average card in the Canadian travel rewards credit card market.

Related Links:
- American Express Gold Rewards Card (American Express Website)

42 comments:

  1. you contradict yourself.Under "what is good" you say "the cardholder is well covered etc", under"not so good" you say"lack of trip cancellation "may be a minus. Please expand.
    Dave

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  2. In comparison to most cards, the insurance and benefits provided on this card trip interruption, baggage delay, Car Rental CDW, Hotel Burglary insurance etc. do make the cardholder well covered. Most cards offer roughly the same coverage however there are a few competitors to this card that do offer Trip Cancellation so the lack of this single coverage may make this card not so good for some potential cardholders.

    Hope this explains the reasoning behind the benefits of this card falling into both the good and the bad!

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  3. Although I appreciate the idea of bonus points for certain spending, I really don't understand why you appear to consider this card superior to the SPG AmEx, which gives bonuses at various spending levels and whose points are convertible to so many airlines miles at 1:1, with 5,000 bonus miles whenever you convert 20,000 miles. Yes, they are charging for the SPG card, but it's easy to have the fee waived, especially for the first year. No, I have no affiliation with SPG or AmEx.

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  4. oops... should be, 'whenever you convert 20,000 POINTS to miles'

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  5. We have never considered nor said that this card is better or superior to the SPG Amex. The cards are actually quite different from each other. I love the SPG feature of the bonus miles whenever you transfer 20,000 Starpoints to the various FFPs. This Amex Gold Rewards card falls into a different category then the SPG Amex, the SPG Amex gives hotel points or frequent flyer miles while the Gold Card gives the option for both those plus the option to book any travel like all-inclusives, cruises, etc. For a road warrior, the SPG Amex fits the bill nicely, for the average Canadian who is not or does not want to be tied into a frequent flyer or guest program, the Gold Rewards card is a nice fit.

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  6. Hello:

    I just got this card last month because the 1st year was free and so far:
    1) Loblaws Grocery store does NOT accept it
    2) Some Asian Food Stores do not accept it
    3) I cannot convert my points to AiRmiles although I can convert to Aeroplan
    4) Some Drug stores do NOT accept it

    So although I did get the 15,000 bonus points, I am not sure if it is better than the CIBC Aeroplan Infinite Visa card which is for $120 per year compared to $150 for this one (the 1st year is free of course)...stay tuned...

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  7. Hi there,

    Good comments about this card. I'm considering this card since:

    PROS:
    1) I belong to Costco and I can use this card for groceries, gas, etc;
    2) 2 points for every $1 is the best CC offer that I've seen, especially if you convert the points to aeroplan miles (1:1);
    3) Bonus 15K for joining give you a short-haul trip automatically;
    4) AMEX offers its own catalog of rewards (gift cards, products) for redemption.

    CONS:
    1) $150 annual fee which is waived for 1st year;
    2) Not widely accepted so a back-up MC or Visa is needed.
    3) Cannot convert to Airmiles or use it for Westjet points;
    4) Taxes on trip is not included for Aeroplan or airmiles.

    Any feedback to this?

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    Replies
    1. Costco is not categorized as groceries store by AMEX. Hence you don't earn double points by using this card, the same with Costco gas station.

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    2. I have always received double points for my Costco Gas purchases as it is considered gas. True though the stores are not considered grocery stores so they are only 1:1

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  8. Here is my feedback
    The $150 is higher then other cards but there is no fee on supplementary cards (whereas most others are $120 + $50 for supp.)

    The acceptance issue is true, if this would be your primary card then I would suggest a low fee or no fee rewards or cash back Visa or MC as backup. (I carry all three)

    Not being able to convert to WestJet is not a big deal as you can book direct with WestJet and then use the points as a credit to the charge on your statement and still earn the WestJet dollars on the flight.

    And yes taxes are not included if you choose to go the Aeroplan route, but this is the case for any Aeroplan Credit Card (same goes for Air Miles)

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  9. Go this card last fall since $0 for the year. One point is that the 2x feature is only for Canadian merchants. That didn't click until I got back from March break in the US and my US gas and grocery purchases were 1:1 in points. For $0 for a year, this card is a no-brainer for the first year if you collect Aeroplan. I will evaluate after the first year when I need to pay an annual fee and see which was really better.

    The monthly statements are great, breaking out purchases by primary and supp. card holders, and listing 1:1 and 2:1 purchases.

    And.. don't be in a rush to convert to Aeroplan if you aren't using the points right away. I swapped 20k in points, and the next week Aeroplan ran a promo that would have given me 25k for doing that.

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  10. BE VERY CAREFUL WHEN READING THE FINE PRINT AND COMPARING CASH BACK CARDS. MANY ARE NOT TRUE 2% CASH REWARD CARDS, BUT UP TO 2% TIERED CASH BACK CARDS. THE COSTCO AMEX, VISA AND MASTER CARDS ARE ALL TIERED 2% CARDS. FIRST YOU START OFF AT 0.5% AND THE SCALE GRADUALLY REACHES 2% (TIERED NOT CUMULATIVE)AN EXAMPLE 0.5% ON THE FIRST $500. 0.75% ON THE NEXT $500.00,1% ON THE NEXT $500 AND SO ON, WITH 2 % COMMENCING AFTER YOU HAVE SPENT $3000.00.IN A CALENDAR YEAR.
    WHEN YOU GET TO THE FOLLOWING YEAR, YOU START ALL OVER AT 0.5% (AREN'T THE CARD ISSUERS GENEROUS?)

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  11. I WOULD LIKE TO SEE A SPEADSHEET ON ALL THE REWARD CARDS!

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  12. Amex gold rewards will transfer a minimum of 1000 Points TO Aeroplan upon request

    Visa Iinfinite Aerogold requires a minimum 10,000 ponts upon request

    When comparing these cards, consider whether points that you cannot always use to get flights that you want, are better than cash!

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  13. FYI: CAPITAL ONE IS ADVERTING A 2% CASH BACK CARD ON EVERYTHING (NOT TIERED) EVERYWHERE IN CANADA, EXCEPT QUEBEC. ANYONE KNOW WHY?

    ALSO RBC HAS A CASH REWARDS CARD THAT GIVES BACK 5% ON GROCERIES PURCHASED FROM ALL MAJOR GROCERY CHAINS, BUT ONLY 1% ON EVERYTHING ELSE. WE USE IT FOR GROCERIES ONLY! THE FIRST YEAR WAS FREE AND THE COST IS NOW $19.00 THE CASH IS CREDITED AND DEDUCTED ONCE EACH YEAR ON YOUR JANUARY STATEMENT.

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  14. To the comment looking for a spreadsheet, we have a comparison chart for the more popular cards at
    http://www.rewardscanada.ca/cccompare.html

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  15. 1. Which is best Visa Avion or Amex Gold Rewards,BMO world Elite if my goal is to travel with flexibitlity?
    2. I cannot get Capital One Aspire because I am a Quebec resident. When will it be available in Quebec?
    thanks

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  16. Or rather to re-ask my 1st question:
    1. What is the best if my goal is to travel with flexibitility:
    CUETS Platinum Class MasterCard
    or
    RBC Avion
    or
    BMO World Elite
    or
    Amex Gold Reward

    (I do not need to transfer points too aeroplan or other)
    Thanks

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  17. And amex gold is now with a first year free. It says on its website: ''Get your first year free.
    Indulge yourself in your American Express Gold Rewards Card as the first year is on us. No fee for the first year. A savings of $150.''

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  18. The best card? That is a toss up but I tend to lean towards cards that allow partial redemptions and allow you to book your travel by yourself and then redeem the points against the charge.
    These include the
    - Amex Gold Rewards which gives you a 1 to 2% return depending on your spending. The first year free plus free supplementary cards on the Amex Gold are nice benefit.
    - TD First Class Infinite Visa which gives you 1.5% return (4.5% on travel you book through them)
    - Diners Club Club Rewards MasterCard which gives you a 1.7% return (they are not accepting new applications right now but should be sometime later this year) plus it gives you free access to over 350 business class lounges worldwide.

    The other cards you asked about are also good but you have to book the travel through their travel agencies, here are some pros and cons:
    RBC Avion:
    Pro: Potentially the best return of all these cards if you can redeem for a flight at the top end of each category on their rewards chart.
    Con: You have to book 14 days out to get redemption chart rates (last minute bookings <14 days are redeemed at a flat 1%)

    BMO World Elite:
    Pro: 1.9% return, free Priority Pass membership and three free lounge entrances
    Con: They charge a booking fee to book your reward travel

    CUETS Platinum Class:
    Pro: 2% return and the ability to earn more points when you tie in a credit union debit card to the account
    Con: You have to book travel via their agency and they cap your point earnings to 400,000 a year ($200,000 a year which for most is fine but if you are self employed and put lots on your card this could come into play)

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  19. Thank you very much. So I guess Amex Gold rewards offers more flexibility than RBC Avion and is more profitable to the cardholder?

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  20. Have just come across this blog - it is an excellent resource, so thank you. I was hoping you could clarify my thinking on something: I current have two 'hyrbid' cards - a TD First Class Infinite and the American Express Gold Rewards. The latter I received just a few weeks ago when I called AMEX to cancel my Aeroplan Gold card because I was sick up being stuck with just Aeroplan rewards and was planning to switch all my purchases to the TD VISA. Given the free first year and the bonus points, I thought why not give the Gold rewards card a try. If I understand what I have read on the site correctly, am I right to say my best value approach to be using the Amex Gold Rewards for gas, grocery and travel purchases and the TD Infinte card for all other purchases and any travel I may book through TD Travel? Anything I am missing? I don't carry a balance on either card, so the charge vs. credit card issue not a factor in my decision. Thanks for your insight.

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  21. Hi Michael,

    That is exactly what you would want to do since the Amex Gold Rewards earns 2X miles for gas, grocery, drug store and travel purchases. (here's a hint as well, buy gift cards for your favorite restaurants, stores etc. from your grocery or drug store to earn 2X miles!) And since the TD earns 1.5 versus Amex 1.0 on all other purchases you would use your TD Card on them. Then when you book travel you can split your travel (ie Hotel on Amex, Flights on TD) and redeem from both cards for those charges.

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  22. Right on, thanks a lot for the insight. Love the gift card tip - brilliant!

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  23. I THINK THAT THE CAPITAL ONE ASPIRE CARD WILL GIVE EVERYONE A RUN FOR THE MONEY AS IT IS OFFERING A FLAT 2% ON ALL PURCHASES. ADD A RBC GROCERY CARD WHICH YIELDS 5% AND I THINK AMEX JUST BECAME REDUNDANT? ANY COMMENTS?

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  24. I've had the Amex Gold Rewards Card since January. To my disappointment, buying grocery at Costco does NOT give me double points - at least from what I could tell in my statement. And I haven't found any regular grocery store that would take Amex. I also discovered to my dismay that some drugstores won't take it as well....

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  25. Unfortunately some places do not take American Express but my overall experience has been positive. Sobeys, Safeway, Co-Op, Rexall, Shoppers Drug Mart etc all take American Express out West so no issues. Since Costco is not entirely a grocery store it does not offer double points (same would go for Wal-Mart if your were to buy groceries there). You do however get double points on Costco Gas Station purchases.

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  26. Hi Superdawg,

    I just got this card recently and have about 20k AMEX reward points in my account so far.

    Couple questions if I may:
    1. In the past, how often(or if any) do AMEX have exchange promotion between AMEX reward points to Aeroplan miles?

    2. Base on history, when do you think they will have this promotion this year again?

    Thanks.

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  27. Hi John

    I'll have to check with Amex when and if they will run a promotion between Aeroplan and Membership Rewards. I cannot honestly recall if they have in the past. I do know they did have promos to transfer to Delta and Continental in the past.

    I'll let you know

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  28. Super helpful. Thanks for the post!

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  29. I have used this card since Jan, 11 and I should say that it was a good choice for me to go with this card. Earlier I had the CIBC Aeroplan Infinite VISA. I saw the AMEX promotion for the first year being free and hence jumped on it. I cancelled the VISA when it was due for renewal. I am happy with this card. One of the big advantages is the 2X points for grocery and travel. If you travel a lot you can very quickly earn lots of points. I was also able to take advantage of their rental car damage insurance; everything went smoothly and the insurance company directly paid the rental car company. Customer service is excellent.

    The only downside is that AMEX is not accepted widely especially in those small retailers (or in some cases large retailers such as Superstore, which seems to be a marketing strategy rather than economics). AMEX acceptance outside North America may be limited to large retailers. AMEX generally has been for the upmarket clientele, but I think this card should appeal to the general consumer.

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  30. Love AMEX. Been a cardmember since 2003. First started in using Amex in the US and then when I moved to Canada transferred the file over.

    Reasons for loving Amex Gold beyond what's been said in the review:
    -Stellar customer service
    -rewards program
    -rental insurance program (you can very comfortably decline renter's insurance if you have Amex Gold)
    - notice amex charges get processed much faster than Visa, MC or interac (at the terminal)
    - overall experience

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  31. AMEX is nothing but a soliciting company. They sent me one of these card offer year before last year or early last year and I have reluctantly accepted the offer and using it on and off. Since then thay are sending one similar personalised offer almost twice a month offering same card, same bonus again. Recently they sent me one offer with 20,000 sign on reward points instead of 15,000. So, when I responded to that they sent me another card. After I used that they are saying me that they can't give the bonus points as mentioned in the offer letter. Customer service is very poor, no one knows exactly the details of these offers. Every person gives a different information. Cards are not acceped in many places, rewards 2x etc. only for Canada not travelling abroad. My suggestion they should stop soliting the customers and keep the promise.

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    Replies
    1. i have the same problem...same offer was given to me but when I started using the card, they said they cannot find such an offer of (20,000) rewards points. They only offer 15,000 rewards on the gold card. I feel cheated. They asked me send a copy of that promo but I got this when I spoke to the person over the phone so I have no record. If you have this promo in a letter format, would you be able send me a copy of that via fax? Let me know. Thanks

      Delete
  32. I am sorry to hear about your experience with Amex and have had no issues with their customer service. Typically when you apply for a card and then get another offer with a higher bonus it is best to call them rather then reapply and see if they will give you the points difference between the two offers as you will not get the new bonus offer if you already carry the same card. You can cancel your old card first and then reapply after a few months to get a larger bonus if you like. Check with the issuer first to see what the time period is between cancelling and then reapplying for a card.

    As to the 2x points, for gas, drug and grocery it is in Canada only however the 2x points on travel purchases is Worldwide.

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  33. If I get this card and then cancel it (before the one year is up) will I still be charged the $150.00 on the anniversary date? Trying to interpret the bit at the end of the following statement (regardless of card activation).

    Basic Card: $150; Supplementary Cards: $0 for 1, additional Cards $50 each. Waived for the 1st year; charged annually thereafter on or after anniversary of the date Card was issued (regardless of card activation).

    Thanks,

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  34. No you will not be charged the annual fee if you cancel prior to your first year anniversary.

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  35. Have been using Amex Gold card for about 1.5 year. A great card overall if you travel a few times per year.

    Although the 2X points apply to certain groceries, gas, and pharmacy expenses; all traveling purchases made outside of Canada are also eligible for the 2X points! Also, I have been "upgraded" during a hotel stay when paid with Amex Gold!!

    To me, Amex offers more travel perks when compared to Visa or Master Card.

    Highly recommended for frequent travellers ;)

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  36. I just got this card and now ScotiaBank has released an American Express card that has similar but better features such as 4x the points, trip cancelation and a lower annual fee. What is your opinion on the three new ScotiaBank Amex cards in comparison to the American Express Gold card? I think the ScotiaBank Card is better and I am thinking of canceling my Amex card.

    ReplyDelete
    Replies
    1. It really depends on what is best for you and comes down to where you do most of your spending and how much you spend. If you use the card for travel purchases than the Amex Gold Rewards card is better since it earns 2x points on travel purchases but if your spending is more towards dining/entertainment etc than the Scotiabank card is better. However if you are a big spender beware that the 4x points ends at $50,000 in total spending in those categories and drops to 1 point afterwards where the Gold Rewards card does not have a cap. In terms of annual fees the Gold Rewards Card is free the first year, so for the first 2 or so years the cards cost roughly the same. If you have supplementary cards the pricing gets closer ie ($128 for Scotia vs $150 for GRC)

      Trip Cancellation is big for some people but what many people are unaware of are the limitations of the policy, so be sure to read the policy before applying (most only cover death of an immediate family member or an illness not from a pre-existing condition, some will cover loss of work but not all). See if the policy works for you.

      Finally for me and the reason I have decided to keep the Gold Rewards Card over the Scotia cards is the transfer options to Aeroplan, British Airways and Starwood with the GRC card. For me, since I primarily use the card at 2x points merchants I am essentially earning 2 Aeroplan Miles or 2 BA Avios or 1 Starpoint per dollar. I value Aeroplan miles and Avios at roughly 2 cents per mile and Starpoints at 4 cents (or more) per point so for me they are equivalent to a 4% return like the Scotia card.

      But with all that being said, I think the Scotia Amex cards are an amazing deal and if you feel they are better for you by all means go for it, you won't be disappointed!

      Delete
  37. Does anyone know if prescription purchases at Shoppers Drug Mart would be 2:1?

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