Verdict: The Macy’s American Express Card offers some perks for consumers. But the extremely high interest rates that come with the card easily outweigh its relatively meager benefits. This is not the card for shoppers who regularly carry balances: The interest rate is simply too high.
Overview: Macy’s offers two American Express credit cards, both of which charge no annual fee. The basic card offers gives cardholders access to an outside Web site that offers reduced-price meals, travel packages and merchandise. The Macy’s Preferred American Express Card provides rewards for purchases made at Macy’s and other locations, and also allows holders to nab sometimes deep discounts on travel packages. Consumers, though, must spend at least $1,000 a year at Macy’s stores to qualify for this card.
Chase Freedom® Visa you receive $200 cash back after making $500 in purchases during your first 3 months of cardmembership. This equates to receiving 40% cash back on your first purchases! This card also has a great rewards program, allowing you to earn an additional 5% cash back on popular spending categories like gas, groceries and at department stores. These categories rotate throughout the year, maximizing the amount of rewards you earn.How This Card Works: Both Macy’s American Express cards work in the same way: Cardholders’ due dates will be set at least 25 days after the close of each billing period. Customers will pay no interest as long as they pay their balance in full by the end of each pay period. Cardholders will have to pay a minimum interest charge of $2 in any billing period in which they do carry a balance, even if that balance isn’t high enough to equal such a charge.
Travel and Shopping Benefits: The chief attraction of store credit cards are the shopping benefits that they offer. The Macy’s Preferred American Express card provides users with credits on all purchases, 3 percent for purchases at Macy’s and 1 percent for purchases made at other locations. After cardholders reach $25 worth of credit, Macy’s provides them with a Star Rewards Certificate. Consumers can use these certificates to purchase additional products at Macy’s. Holders of the preferred version of the Macy’s card also qualify for Preferred Travel, a Web site that offers large discounts on travel packages.
The holders of both Macy’s cards gain access to Daily Wish. This Web site provides discounts on a wide range of products. Theday I visited, for instance, the site offered $5 off an order of $20 or more at restaurant chain Fajitas & ‘Ritas, a Costa Rican adventure package with a retail value of $4,298 for just $2,149 and a complimentary appetizer or dessert with any entree at restaurant chain Dave & Buster’s. Cardholders of both types are also able to return Macy’s merchandise without having to produce a receipt.
Fees: The fees are where the Macy’s cards fall flat. The APR for purchases is a high 24.5 percent. The cards also charge late payment fees of up to $35 and returned payment fees that can also go up to $35. Cardholders must spend $1,000 a year at Macy’s stores if they want to retain their Macy’s Preferred American Express card. One positive is that the Macy’s cards charge no annual fees. Because of the high APR, though, this isn’t a good credit card for consumers who don’t pay their balances in full each month.
Pros
- No annual fee
- Card allows for quick returns of purchased merchandise
- Rewards program
- Access to discount-shopping and -travel Web sites
Cons
- High APR of 24.5 percent
- Late fees of up to $35
- Returned payment fees of up to $35
Dan Rafter has contributed to such publications as the Washington Post, Chicago Tribune and BusinessWeek Online. He's also a frequent blogger on credit and financial issues.
August 23rd, 2011 at 3:59 pm
I recently paid off the balance on my Macy’s Amex account, in person at a store branch. Then came a statement that did not reflect the payment and added a $2.00 minimum finance charge. I called their customer service department and was told that the account is actually TWO accounts that use the same card: a “store account” and an “American Express account” for charges at other locations than Macy’s. Since I did not specify that the payment was to be credited to the Amex account, it was instead applied to the store account, even though there was no balance on that account. No doubt this is spelled out somewhere in their fine print, but it seems to be quite a pitfall for the unwary, and a good way to rack up unjustified late fees. I will say that the Macy’s customer rep was very helpful, but you can bet that I’ll be watching my statements very carefully from now on.