The American Express Essential Card has many benefits that appeal to the mainstream consumer. But, not necessarily those that are reward points-focused. I’d say that reward points are a benefit of the card rather than a focus.
The card has no annual fee and comes with Smartphone Screen Cover.
Who’s the American Express Essential Card for?
This card will likely suit those:
- who are averse to cards with high annual fees and
- are looking for a no or low annual fee card that still earns rewards points
- who may not meet the income threshold for premium credit cards
- where the higher cost of a premium credit card outweighs the benefit of the card’s additional features. (eg your income or spending is too low to obtain maximum value from premium cards)
- those who want to start earning points from their credit card spend with little risk
Digging into the details of the American Express Essential card
Card Details
| Card | American Express Essential |
| Loyalty Program | American Express Membership Rewards |
| Points earned from spend | 1.25 Membership Rewards points earned per $1 on everyday spend, and 1 Membership Rewards point per $1 on government spend |
| Included insurances | Smartphone Screen Cover, Buyer's Advantage Cover, Card Purchase and Refund Cover (PDS) |
| Overseas transaction fee | 3% of the converted amount |
| Mobile wallet | Apple Pay, Google Pay and Samsung Pay |
| Annual fee | $0 |
Effective Frequent Flyer Program Point Earn Rates
| Frequent Flyer Program | Points earned from spend |
|---|---|
| Velocity Points | Up to 0.625 point / $ |
| Singapore Airlines KrisFlyer miles | Up to 0.625 Mile / $ |
| Cathay Pacific Asia Miles | Up to 0.625 Mile / $ |
Consider this card the little hipster brother of the Platinum Edge Card.
Earning points with the American Express Essential card
I’ll start with the points angle first. The Essential Card earns points into American Express Membership Rewards.
Nearly all frequent flyer program partners have a transfer rate from 2 Membership Rewards points to 1 frequent flyer point. This includes airline programs like Velocity Frequent Flyer, Cathay Pacific Asia Miles, Singapore Airlines KrisFlyer. The exception is Air New Zealand which is 200 Membership Rewards points to 1 Airpoints Dollar.
Therefore, the effective transfer rate is 1 Membership Rewards point to 0.5 airline points.
| American Express Membership Rewards Partners | Transfer Rates |
|---|---|
| Velocity Frequent Flyer Asia Miles Emirates Skywards Etihad Guest Malaysian Airlines Enrich Singapore Airlines KrisFlyer THAI Royal Orchid Plus | 2 Membership Rewards point = 1 frequent flyer point |
| Marriott Bonvoy | 3 Membership Rewards points = 2 Marriott points |
| Hilton Honors | 2 Membership Rewards point = 1 Honors point |
| Air New Zealand Airpoints | 200 Membership Rewards points = 1 Airpoints Dollar |
| Helloworld American Express Travel Online David Jones Pay with Points Myer Pay With Points | 20,000 Membership Rewards points = $100 travel reward |
The Essential Card earns 1.25 points per $1 for utilities, insurance and telecommunications. It earns 1 point per $1 for government spending.
The card is also eligible for Amex Offers. These offers provide American Express Card Members with rotating promotions and discounts for a variety of products and services.
American Express Plan It
American Express launched ‘Plan It’ in mid-2020, allowing Card Members to create instalment plans that allow equal payments to be distributed over a 3, 6 or 12-month payment period. There is a monthly fixed fee to access this feature. Up to 10 Plan It plans with a minimum of $150 balance able to be created.
Other benefits of American Express Essential
Beyond points, this is where American Express is trying to innovate a little with this card. The Card offers Smartphone Screen Cover, which is quite unique in the market as a credit card insurance offering. The cover will insure you for screen repairs up to $500, with a 10% excess on the claim.
You can also pay for purchases at David Jones, or use points to offset charges on your credit card statement.
There are also insurance benefits, including:
- Card Purchase Cover – covering breakage or theft of an item up to 90 days after purchase
- Buyer’s Advantage Cover – extending the manufacturer’s warranty on items
- Card Refund Cover – if you’re refused a refund on an unused item within 90 days of purchase
The PDS of the full set of insurances for the Essential is here.
Half the battle with these insurances is remembering you have access to them. If you are a Card Member, make sure to read the PDS and mentally file away the details.
Unparalleled mobile wallet integration
American Express cards support Apple Pay, Google Pay and Samsung Pay, meaning you can use this card on your smartphone for easier payments.
Read the Point Hacks guide to using Apple Pay or for using Google Pay and Samsung Pay, including instructions on how to add your American Express card to those services.
With this feature set up, it means you could still use your NFC-enabled phone to make purchases with your American Express account, even if your physical card is lost or stolen and pending replacement.
Other no annual fee points-earning cards in the market
There are few no annual fee points-earning cards out there (although there are few with low fees, under $100).
These include the American Express Qantas Discovery Card and the American Express Velocity Escape Card. Both are no-annual fee Qantas and Velocity Points earning cards respectively.
Both these Cards offer 0.75 Points per dollar spent in their respective points currencies. They also offer 0.5 Points per dollar spent on Government and Utility transactions. Neither Card comes with Smartphone Screen Cover.
If you are looking for a lower-cost Membership Rewards Points earning card, the American Express Platinum Edge Card is also an option.
Summing Up
The American Express Essential Card will suit those who are after frequent flyer and travel rewards benefits. You may not be totally hooked on rewards and frequent flyer points but want to ensure you are getting some return for using their credit card for their everyday purchases.
For the travel reward seeker, the Membership Rewards program has a great selection of airline and hotel partners. The Card appeals to those looking to pay for purchases at David Jones. Or to use points to offset charges on their Card statement.
In summary, this Card allows those who may not qualify or wish to pay for a more premium Card the ability to earn frequent flyer points on their everyday spending.
Assuming one already has an Ascent account, does this then mean you have two separate rewards accounts (just like if you had an Ascent and Ascent Premium account)?