It was no surprise when David Jones announced they'd be releasing an American Express, four months after the launch of the
Myer Visa. The two brands are like petulant siblings - one can't have something without the other wanting it.
Perhaps also unsurprisingly, David Jones did a better job of it.
I'll give you some examples: the David Jones card comes with a Fashion Pay Later feature, where you can spend $500 or more on men's or women's clothing at David Jones and not pay anything for three months. You can also get a Christmas deferred payment option, where any purchases made between November 1st and December 24th with your card won't accrue interest until February. Then there's the complimentary gift wrapping on all purchases made with your card and the invitations to exclusive shopping events (including members-only clearance sales and Christmas shopping). Myer offers: well, nothing.
To be clear, credit cards from major retail chains are almost always a poor decision and both the David Jones American Express and the Myer Visa are no exception. The purchase rate and cash rate are both 20.74%, which is disproportionately high for the included features (for an interest rate like that, you should expect travel insurance, extended warranty protection, a personal concierge service etc) and the annual fee is $99 (admittedly higher than the Myer Visa).
Other features include 56 days interest free, purchase protection (which covers you for loss or damage to items purchased on your card, for up to 90 days) and emergency card replacement. Currently, David Jones is also offering $100 worth of Gift Cards when you spend outside of David Jones within seven days of receiving your card.
There is also a five years interest free option, where you can purchase $500 or more on homewares, furniture, bedding or electrical and receive up to five years interest free, a bit like the
GE Money Go MasterCard's Harvey Norman offer. Hidden in the fine print is the clause that you'll pay a $35 establishment fee plus a monthly account keeping fee of $2.95 per month - a total of $241 over the five years.
The reward program 'gift points' can be redeemed for David Jones gift vouchers (in denominations of $20, up to $1,000) or on travel (via the American Express Travel program). You'll earn two points per dollar spent at David Jones (and partner retailers Selfridges, Harrods, Harvey Nichols, Nordstrom and Galeries Lafayette) and one-and-a-half points per dollar spent elsewhere. For the first six months, the earn rate is doubled (four points in David Jones and three points elsewhere). A $100 David Jones gift card requires 13,300 points and $100 worth of travel (with Qantas and other leading airlines) needs 15,000 points. There is no capping or expiry of points.
Supplementary cards will cost you $29 per year, which is higher than most cards.
You'll also need to earn more than $40,000 a year to be eligible.
Overall, the David Jones American Express wins the 'Slightly Less Crap than the Myer Visa' award for credit card excellence. It has some good perks, but they're unsubstantial. If you're serious about a credit card, look at cards with lower interest rates or better included features for the price.
