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It's pretty wonderful. Just started last week and loving it so far. $50/mo WeWork, effectively? Awesome. Plus $200 off at Dell (picked up a new SSD for free), $
by servercobra 7y ago
It's pretty wonderful. Just started last week and loving it so far. $50/mo WeWork, effectively? Awesome. Plus $200 off at Dell (picked up a new SSD for free), $200 off flight incidentals for one airline, etc. The thing basically pays for itself (for the first year at least).
- dx034 7y agoI'd be curious who actually pays for that. Is it Amex or did We & Dell give that much discount?
- codeisawesome 7y agoWho pays for it? Likely: - People not paying their Credit Card bills on time and racking up interest. - Everyone else who is not using a Credit Card and get points (or get less points), subsidise the points users. - Merchants who pay 3% transaction fees. - Probably to a small degree, investors who buy stock in the cc companies (capital, which is deployed for Growth).
- muddi900 7y ago3%? Premium rewards can go up to 5%.
- dx034 7y agoI meant this offer compared to other card offers which are not as generous. All of the points you mentioned would mean that Amex pays for it. However, I'm not sure they really pay much of the face value for the Dell and WeWork vouchers, I'd just be curious if they paid 50%, 10% or even less.
- tempsy 7y agoI think what happens in deals like this is that Amex buys bulk memberships (in the case of We) and credits (in the case of Dell) at a heavy discount. They are also betting when doing any financial modeling that a significant % of cardholders won't use these benefits at all.