Originally Posted by
zyxlsy
Say 16000 USD gets 245 USD back but results in a 435 USD conversion fee. This doesn't make any sense, right? But the original return is 245 / 16000 = 0.0153. Shouldn't the new return be 245 / 16435 = 0.149? Definitely the first calculation is dominating, and there must be something wrong in the second calculation...
Do you know the value of AMEX Rewards points if I use them for airfare redemption? Thanks~
The problem with the second calculation is that the conversion fee is not part of what you were spending in the first place.
You were spending 16,000 USD in exchange for goods and services. The 435 USD conversion fee is something that you are paying extra.
So, like you calculated earlier, you will be paying more in conversion fee than what you are getting back with an SPG card.
If you are working in China for a long period of time, I would suggest reviewing your travel pattern to see if you are really benefiting from the cards you have as some of the benefits may only be useful in the US.
e.g. The Chase Mileage Explorer gets you free first checked baggage, but you are going to get a free bag anyway for a flight between US and China.
P.S. You mentioned SPG Gold as something you are interested in, but by holding a SPG AMEX, you already have SPG Preferred Plus status, which gets the same benefits SPG Gold gets, minus the 50% elite member bonus for eligible charges.