Starting 1 February 2025, those with American Express Credit Cards shall have to pay additional convenience charges of 0.75% + GST on the purchase of Amazon Pay and Amazon Shopping gift vouchers through the Rewards Multiplier program.
American Express Reward Multiplier, a popular e-voucher platform used by credit cardholders to redeem reward points and purchase gift vouchers, has announced this change to its terms. The 0.75% convenience fee will apply to the total value of Amazon Pay and Amazon Shopping gift vouchers purchased through the platform. Additionally, GST will be charged on the convenience fee, further impacting the total cost of transactions.
For example, if a user purchases an Amazon gift voucher worth ₹1000, a convenience fee of ₹7.50 will be added. With GST at 18% on the convenience fee, the total additional cost will be ₹8.85.
Bottom Line
Many AmEx cardholders used to take advantage of the purchase of Amazon Pay and Amazon Shopping gift vouchers to achieve their monthly spending-based targets (like those with Gold and Membership Rewards Credit Cards). While the convenience charge of 0.75% is nominal and charged by other credit card issuers in India, like HDFC Bank, it is undoubtedly going to affect the reward rate one could easily get earlier. This new convenience charge might even increase in the future.
Those who plan to make similar purchases with their American Express Card would do well to do it before the implementation date of 1st February 2025.