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“I want to stand as close to the edge as I can without going over. Out on the edge you see all the kinds of things you can’t see from the center.”
Kurt Vonnegut

On the surface, seminal author Kurt Vonnegut and credit card giant American Express don’t seem to have much in common. Upon deeper reading though, there are a number of similarities. Both are American. Both were irrevocably shaped by war, Kurt through his life as a soldier in WW2 and American Express through the loss of its primary railroad business during WW1. And now we can add another – they both like things close to the edge.

The American Express Platinum Edge, Amex’s latest credit card offering, has really piqued our interest here at Mozo HQ. Why? Well it’s because Amex have created a credit card that in many respects has reinvented the idea of a platinum card. Where the platinum card has traditionally been positioned as the bastion of the elites, this is a platinum card designed for the masses.

It’s a rewards card which rather than rewarding merely for total spend, instead rewards for spending on regular expenses using what Amex is calling the “3-2-1” system. You get 3 points per dollar spent at all major supermarket chains, which is an outstanding offer, particularly for families racking up big grocery bills every week. On top of that, you also get 2 points per dollar on fuel purchases at all major fuel retailers as well as 1 point per dollar on the rest.

These points are all redeemed through the American Express Ascent rewards program, giving you the choice to redeem with 6 different frequent flyer programs, as well as over 1500 merchandise and gift options from the online store.

On the financial side, the card has a purchase rate of 20.49% which is one of the highest on the market, but you do get 55 days interest free. If you pay your balance off each month there should be no concerns. There is an annual fee (including rewards) of $149 but this is well below the $258 average for Platinum cards. Only catch is you have to meet the minimum income requirement of $50,000.

In terms of extras, the headline grabber is a complimentary return domestic economy flight every year, covering a big chunk of the annual fee cost. It comes with travel insurance as well as a bonus 20,000 points when you sign up, enough for a $200 travel voucher. However, when compared with other American Express platinum cards, there’s been some pruning. There is no concierge, no purchase protection or extended warranty. Consumers will just have to decide whether flights or features are more important to them in a card.

All in all, it’s refreshing to see a credit card provider looking to pitch a platinum card towards the middle end of the market. American Express’ Platinum edge card blurs the lines between a standard and a platinum card well, and its innovative rewards offering may see more consumers joining Kurt out on the edge.

Compare credit cards at mozo.com.au

As you may remember, a media firestorm erupted last week when Westpac announced it would charge interest on fees and interest on all Westpac Credit Cards. Westpac defended itself by saying this is standard practice among banks — but just how standard is it?

Well, it seems Westpac was right. Across the ‘Big 4′, interest is charged on interest and fees. And they’re not the only ones either, with the likes of American Express, Citibank and St George all guilty of the same tactics.

But this isn’t all — while digging into the fine print about interest and fees, I discovered a myriad of sneaky tricks banks use in charging customers. Forget the trivial feats of magicians and illusionists like Blaine, Copperfield or Criss Angel; for real trickery you need look no further than your monthly credit card statement.

For example, a widespread ace you’ll find up providers’ sleeves involves the specific debts your repayments actually pay off. Most cards’ conditions require your repayments to go towards those purchases that attract the lowest rate. This makes any purchases made at a higher rate more likely to attract interest charges, as they are the last to be paid off.

Another little rabbit in the hat is the date from which interest is charged. Instead of charging interest from the date a transaction is posted to your statement, some providers charge from the date of transaction. While there’s only a few days’ difference, it can add up, especially for larger purchases.

And then there’s the cleverest banking sleight of hand — the ‘prestige’ in magician’s parlance. The typical 44-55 days interest-free period on purchases is often viewed by customers as a breather between spending and interest charges. But quite often this buffer pulls a disappearing act. If your balance is not paid in full by the due date, you’ll lose your interest free days with Commonwealth, ANZ and Westpac. NAB is more lenient, but you still have to maintain your monthly minimum repayment.

So what does this mean for your bottom line? If you lose your interest free days, your bank will levy interest comprising a total of daily interest charges on your purchases going all the way back to the date of purchase. While NAB and ANZ only charge this interest on the overdue amount, Westpac and Commonwealth Bank will charge the 55 days of interest retrospectively on the entire balance, even if minimum repayments are met. What’s more, you won’t get those interest-free days back until those old balances are paid in full. In some cases, such as BankWest, you’re required to pay two consecutive statements in full before they give you this ‘luxury’ back.

In The Prestige, the magician Robert Angier (Hugh Jackman) warns us: “If anybody really believed the things I did on stage, they wouldn’t clap, they’d scream.” I’d be surprised if your next credit card statement was greeted with applause…

Compare credit cards at mozo.com.au