American Express has revamped its Platinum cashback credit card, meaning it may no longer be the most lucrative for the majority of users.

The card giant has today dropped the introductory bonus it used to offer from 5% of spending to 2.5%, and introduced a £25 annual fee.

However, it is the best long-term payer for those who plan to spend over £10,000 a year as it pays 2.5% cashback in every anniversary month. It has also introduced a more lucrative standard cashback reward.

Anyone who has the old Amex Platinum card keeps the same rewards, though you can transfer to the new version without a credit check.

Remember, if you fail to repay a cashback card in full each month the interest will dwarf the rewards.

Amex Platinum old vs new
Reward Old New
1st 3 months cashback 5% (max £100) 2.5% (max £100)
Normal cashback up to 1.25% 1.25%
Anniversary month cashback (i) N/A 2.5% (if spent £10k+ in past yr)
Annual fee N/A £25
Min spend for cashback £3k/year N/A
No use fee £20 N/A
(i) Paid in month 13 after taking card. Then month 25, then month 37, etc

The changes make the Capital One World Mastercard the top payer for many medium and low spenders.

Dan Plant, MoneySavingExpert.com money analyst, says: "With the new Amex card, if you are certain normal spending will be high enough to make the £25 annual fee worth it, it can be lucrative.

"Always remember you pay the charge come rain or shine, so if you spend less than expected, it can be a massive bite out of cashback earnings. The alternative no-fee cards are safer choices, and are worth considering."

The table below shows how the Capital One and two Amex cards compare to help you decide which is best to get if you're a new customer, or whether it's worth switching if you're on the old Amex card.

Top cashback cards compared
  Cashback, based on annual spend
Card £3,000 £10,002 £20,000
Capital One
Year 1
£49
£145
£233
Year 2
£15
£70
£195
Total
£64
£215
£428
Amex Plat (new) Year 1
£22
£131
£275
Year 2
£13
£110 (i)
£246
Total
£35
£241 (i)
£521
Amex Plat (old) Year 1
£49
£180
£304
Year 2
£15
£89
£214
Total
£64
£279
£518
Assumes regular spending every month. Cashback for new Amex Platinum is after £25 fee. (i) You need to spend £10,002 a year to get the anniversary bonus.

To get the Amex Platinum card, you must have a household income of at least £30,000 a year and a good credit rating.

To get Capital One, you need a good credit rating, an individual income of £20,000+ and you must be a homeowner.

Alternatively, MBNA Amex pays 1.5% on all food and petrol spending, and 0.75% on everything else. There's no minimum income requirement, but you need a good credit rating.

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