Originally Posted by
JHake10
As MIA noted, the bonus points are not awarded for those categories outside the USA (restaurants, gas, groceries, etc). Sorry for the confusion. My hunch is that AMEX doesn't make as much interchange on those swipes and therefore, doesn't pay out the MR.
I'll just correct a couple of things, and lend some credibility to the theory - AMEX doesn't actually have "interchange" per se. Interchange is the fee paid by the acquirer to the issuer when the card is swiped, dipped, or tapped. AMEX is a closed acquirer system - in all cases, AMEX is both the acquirer and issuer, so the entire commission is pocketed by AMEX.
However, unlike Visa and MasterCard where the rate paid is usually higher than the rate paid for a domestic card, AMEX treats cards the same no matter which AMEX entity issued it, meaning if my contracted merchant commission were 1.5% (which it is), then the commission on that transaction is 1.5% regardless if the card is issued by American Express USA Inc, American Express Australia Pty Ltd, or American Express UK plc (examples, not real entity names).
Basically it means that since outside the home country AMEX cannot rely on getting 3% from the merchant, they likely choose not to treat the transaction the same as a domestic one and therefore don't give you bonuses.
Also fun fact: I dunno why you're complaining about a $550 annual fee. For us in Australia it's $1200 annual fee and less benefits! Though I suppose the travel credit kind of makes up for it.