End of 20% rebate on Pay with Points?
Oct 7, 2012, 7:43 am
#1
Original Poster
Join Date: Oct 2005
Location: New York City
Posts: 160
End of 20% rebate on Pay with Points?
I just heard from American Express that they are ending the 20% bonus on pay with points next February. Is that across the board, or targeted? Although pay with points is not the way to get maximum value for MR points, there were times that it was useful (especially last year when there was a targeted discount on pay with points as well).
It seems that the value proposition on Amex points for anything other than transfer to airline programs continues to diminish.
It seems that the value proposition on Amex points for anything other than transfer to airline programs continues to diminish.
Oct 7, 2012, 4:15 pm
#3
Join Date: Nov 2010
Location: Bellingham, WA
Programs: AMEX Platinum, Delta Gold, Alaska Air MVP Gold
Posts: 449
The 20% back was not advertised on any of the sites when I was looking to do my first pay with points purchase about a week ago so I called and the rep said it was being discontinued 2/13/13 (I think that was the exact date). The 20% back posted to my account about 4 days after the purchase.
The 20% back plus getting air miles and putting me over the Alaska Air MVP Gold status is the only thing that made pay with points worth it. If the 20% back is discontinued that'll be very disappointing.
The 20% back plus getting air miles and putting me over the Alaska Air MVP Gold status is the only thing that made pay with points worth it. If the 20% back is discontinued that'll be very disappointing.
Oct 7, 2012, 4:34 pm
#4
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
It's advertised here:
http://exploreplatinum.americanexpre...enefits/Travel
http://exploreplatinum.americanexpre...enefits/Travel
20% Travel Bonus. To use Pay with Points, you must charge purchase through American Express Travel to Membership Rewards® program-enrolled Card. Points will be debited from Membership Rewards® account, and credit for corresponding dollar amount will be issued to Card account used. If points redeemed do not cover entire amount the balance of purchase price will remain on Card account. Minimum redemption 5,000 points. Effective for Pay with Points redemptions for Consumer and Business Platinum Card members and Centurion members will receive 1 bonus point for every 5 points you redeem. To be eligible to earn bonus points, Card account(s) must be active and not in default at the time of bonus points fulfillment. Transactions charged to a Corporate Card are excluded. Bonus points will be credited to your Membership Rewards® account approximately 6-10 weeks after charges appear on your billing statement. See http://membershiprewards.com/terms for Membership Rewards® program terms and conditions. Bonus ID: 4880.
Oct 8, 2012, 2:01 am
#5
Join Date: Nov 2010
Location: Bellingham, WA
Programs: AMEX Platinum, Delta Gold, Alaska Air MVP Gold
Posts: 449
20% back is no longer advertised as a perk on Amex travel site. I didn't see it when I booked my tickets and I still don't see it advertised. That's why I called to find out if it's still in effect.
Oct 8, 2012, 8:26 am
#6
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,486
I agree that this was never a great redemption option, but as another poster mentioned, last year there was a (targeted, I believe) promo that added another 30% or so on top of the 20%, which made it a slightly better value proposition.
Oct 8, 2012, 8:32 am
#7
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
American Express needs to remain competitive. Both Chase ($0.0125) and Citi ($0.0133) offer a higher redemption value for travel purchases through their in-house travel agencies. I wouldn't be surprised if American Express restructures the feature to be simpler, but I will be surprised if they think $0.01 per point is sufficient.
Oct 9, 2012, 9:42 am
#8
Join Date: Nov 2005
Location: SIN / SFO
Programs: UA GS, SQ PPS, Hyatt Globalist, Marriott Titanium, Hilton Diamond, Accor Gold
Posts: 1,215
Originally Posted by American Express
Effective February 1, 2013, personal Platinum Card® members will no longer receive 20% of Membership Rewards® points back when booking a a trip with American Express Travel using Pay with Points. You can still use Pay with Points when you book with American Express Travel, including to pay for any airline without seat restrictions or blackout dates, and pay for either all or part of your trip. As a Platinum Card member, you can also enjoy more than 40 additional benefits offered to you, including earning double Membership Rewards points when you book at amextravel.com.
If you choose to cancel your card as a result of this change, you can do so and receive a partial refund of your annual fee by calling us at 800-525-3355 (from outside the U.S. or Canada call us collect at 954-473-2123) no later than 5p.m. EST on December 30, 2012. Please note that if you cancel your account, you will need to redeem points before you cancel. Unused Membership Rewards points will be forfeited when you cancel.
If you choose to cancel your card as a result of this change, you can do so and receive a partial refund of your annual fee by calling us at 800-525-3355 (from outside the U.S. or Canada call us collect at 954-473-2123) no later than 5p.m. EST on December 30, 2012. Please note that if you cancel your account, you will need to redeem points before you cancel. Unused Membership Rewards points will be forfeited when you cancel.
Oct 9, 2012, 7:01 pm
#9
Join Date: Sep 2005
Location: Columbia, SC
Programs: AA Plat, SPG/Marriot Gold, HHonors Diamond, Hyatt Expl
Posts: 2,363
It was included as an "important notice" on my statement that cut yesterday morning:
Effective February 1, 2013, personal Platinum Card® members will no longer receive 20% of Membership Rewards® points back when booking a a trip with American Express Travel using Pay with Points.
Effective February 1, 2013, personal Platinum Card® members will no longer receive 20% of Membership Rewards® points back when booking a a trip with American Express Travel using Pay with Points.
What is American Express thinking??
Oct 9, 2012, 8:50 pm
#11
Join Date: Aug 2010
Location: ORF
Programs: Amex Plat, AA, BA Silver, Marriott Plat, Choice Gold, HHonors Gold, IHG Diamond
Posts: 3,749
Keep in mind that Amex has taken hits on transfer partners, losing several to Chase in the last 18 months, and while having several bonuses with BA in the past year, has been very quiet on the DL front. Although it's not completely possible to predict the future, it seems unlikely that Amex will choose to fall behind in yet another arena, especially one where they can control the redemption rate.
Oct 10, 2012, 7:19 am
#12
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
American Express marketed this poorly. Their 20% refund sounds as if it is less than Chase's 25% bonus, even though they are identical. It could be that they will revalue the points at $0.0125, but it could also be their belief that if they hold firm at $0.01 per point the other issuers will follow. This was their strategy when they eliminated double points for everyday spending in 2006.
Oct 22, 2012, 9:02 am
#14
Join Date: Aug 2007
Programs: Marriott Lifetime Gold and Current Platinum, Hilton Gold
Posts: 280
Was informed of this change in my recent statement dated Oct. 11th. If this benefit does not reappear in some other way it's going to be very disappointing. This was one of the things that made the MR program more worthwhile (and helped to counteract the fees they charge you to book Pay With Points travel, which are pretty high in my opinion). Too bad.
