For many years, American Express Credit cards have been preferred by many Indian customers due to their premium services, robust rewards, and flexible redemption offers. Many cardholders would accumulate points and use them to redeem Amazon vouchers. However, a recent change made by Amex regarding the charges left many loyal customers disappointed. From July 25, 2025, the convenience charges have doubled from 0.75% + GST to 1.5%+GST. This may seem to be a small change, but it has a huge impact on the real value one gets from Amex rewards.
New Charges: What is Changing?
This is not the first time Amex has changed its policies regarding Amazon vouchers. Previously, the monthly limit for Amazon vouchers was INR 25,000, but it was then reduced to INR 10,000. On top of it, they have also doubled the convenience fee. Amex allows its cardholders to earn reward points and to buy vouchers from the platforms called Gyftr or Reward Multiplier. Major brands on this platform are:
- Amazon (Pay and vouchers)
- Flipkart
- Myntra
- Croma
Earlier from Feb,2025, Amex started charging a convenience fee of 0.75% + GST on Amazon vouchers, and now they are charging 1.5% + GST from July 25, 2025. Let’s say you are buying an Amazon voucher worth INR 10,000
- Old Charges – INR 88.5
- New Charges – INR 177
Who is Most Affected
- Amex MRCC and New Users: They earn 2X on their vouchers, as the fee is doubled (1.5%), they cannot enjoy any benefit, as they end up paying even more.
- Mid-Term Users: They earn 3X on their vouchers, and they also would suffer a bit. As the rewards would cover the cost.
- Premium Users: They earn 5X on their vouchers, even then, the overall gain would be less than before.
Also read: Best 5 Credit Cards for Daily Use – Smart Spenders Are Switching Fast!
Why Does this Change Matter?
- Less Value: As the charges have doubled, the real value of the points has been reduced. Sometimes, it costs more than your actual earnings.
- Trust Issues: As the cardholders sign up expecting good value, but end up paying more than they earn, it creates distrust among the cardholders.
- Cardholders may start looking for another provider: Banks like ICICI, Axis, SBI, and HDFC offer better reward programs, with no extra fee. This pushes Amex cardholders to switch.
What Should Cardholders Do Now?
- Don’t buy Amazon vouchers: It is better to stop buying Amazon vouchers as the real value you get is very low, so it is no longer useful. Mainly, if you are in MRCC or have cards that give less reward, then avoid buying Amazon vouchers.
- Use rewards for other vouchers: As the charges are levied only on Amazon vouchers, you can use your reward points to buy vouchers of Flipkart, Myntra, BigBakset.
- Recalculate your rewards: You should recalculate the actual value of your rewards by considering the new charges.
- Use the points for travel: If you travel mostly by flight, you could use your points to book flights and hotels. This offers better value than using points to redeem vouchers.
- Use other credit cards: If you use an Amex card only for Amazon vouchers, it is better to switch to other credit providers such as SBI, HDFC, ICICI, and Axis Bank.
Conclusion
The American Express credit card is well known for its premium experiences and best customer service. But in India, the users need the real value rather than just a brand from the cards, especially when spending on regular purchases. Amex had doubled the charges, without providing any additional benefits, leaving many users disappointed. It is better to rethink on how to use the points unless you are using a high-end Amex card with 5X multiplier.
Written by N G Sai Rohith
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