If BOA wants to restrict the number of Alaska cards yearly from 50 to 5 that’s fair. If Citi wants to ask a second question before approving another card during the recon call that’s okay with me. What doesn’t make sense is Chase’s 5/24 rule for small businesses and now Amex’s lifetime ban on bonuses for those that receive a business card more than once.
In the post, End of MS Means Get Your Life Together from 2/23/2016, I wrote that there is hope in the points game if you made 2016 the year of leaving the cubicle and starting your own business. One of the reasons I said to do so was that Amex did not restrict bonuses for small business cards. As we now know, Amex has changed its policy to a once in a lifetime sign up bonus per customer leaving churners and bona fide businessmen with no choice but to look elsewhere for small business credit cards.
Tragically, there is no other place to turn for cards that offer great bonus categories for small businesses. As a serial entrepreneur and compulsive organizer, I need to segregate my spending for each business for both tax and tracking purposes. With the new change from Amex, the only choice I have is to apply for a new account, deal with the approval process, and pay the annual fee just for this convenience. Why would anyone do that?
The nerds in Amex’s analyst departments may believe that they have done away with churners by implementing this policy but they did not foresee the lost business opportunities that TPOL is predicting. One does not have to be clairvoyant to see how this course of action will negatively impact Amex’s bottom line.
While on the subject of psychic abilities, I would like to point out that TPOL, the Oracle of Outer Borough (Hoboken), also wrote the following in his piece on AA Devaluation: While devaluations are terrible, what keeps TPOL up at night is the harsh reality that banks are beginning to follow Chase and Amex’s stricter churning policies. These changes, if lasting, will make the severity of future devaluations a non-issue.
What bad news is next for churners, a devolution into a cash only economy? Only TPOL knows.