American Express Membership Rewards - Buy 20K miles per month for 2.5 cents/mile

Just an FYI for you folks who haven't been aware:

You can by up to 20,000 membership rewards points per month, and at a price of 2.5 cents a mile, to be transferred directly to a partner airline.

The restrictions is that your account must not have more than this amount in it, but that's easy if you have >1 card because you can open a second empty MR account, or just empty your current one.

Back up here a minute, how can you have more than one MR account?
As far as I know they are all linked.

Mike

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by First in Class:
Just an FYI for you folks who haven't been aware:

You can by up to 20,000 membership rewards points per month, and at a price of 2.5 cents a mile, to be transferred directly to a partner airline.

The restrictions is that your account must not have more than this amount in it, but that's easy if you have &gt;1 card because you can open a second empty MR account, or just empty your current one.</font>

When did the restriction come into effect? I've done several of these purchases and was never informed of this by any MR CSR.

Here are the current terms and conditions, copied from the amex web site:

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">You may purchase points in 1,000-point increments for $25 per 1,000 points, which will be billed on your Card account. You may only purchase a maximum of 500,000 points per calendar year. You may purchase points only for your own Program account. Points may not be purchased except in connection with a conversion of points to a participating Frequent Customer Program or redemption of points for a Reward.</font>

Interestingly, it appears that the purchase limit has been changed from 20K per month to 500K per calendar year. So, it appears that if you wanted to spend $12,500, you could purchase 500,000 miles in one transaction on your favorite MR-participating airline.

The "in connection with a conversion" provision means that you must immediately transfer the purchased MR points to a partner program, or otherwise redeem a MR award. That is, you can't just purchase extra MR points and have them sit in your MR account.

But, there doesn't appear to be any restriction relating to your current balance when purchasing points, such as a requirement that your transfer not otherwise be doable without the points purchase. To put it another way, there doesn't appear to be anything to prevent someone with a 100K MR point balance from purchasing 20K of points and transferring all of them to their favorite MR airline, just because they could also accomplish this by using some of their banked points.

Also, even if the term "in connection with a conversion" were to be interpreted as requiring some existing points to be transferred as part of the transaction, the above could be accomplished by purchasing 19K points and coverting 1K, for a total of a 20K transfer.

There's just no way the written terms of the program could resonably be interpreted as having anything to do with the amount of the purchase as compared to your current point balance. Of course, that's not to say that some MR rep hasn't said this was so at some point. In my experience, these people aren't very well informed, and tend to just make stuff up when they're not sure. You may have to call back, or escalate the issue to someone that can understand the written word, but you should be able to get a purchase done without respect to your current balance.

There's also one restriction (if you consider it one) that is not written... the purchase must be made with a MR-registered AMEX card.

Now, about that 500k purchase, hmm...

Friends,

Allow me to speak (and complaint a bit) from experience:

It used to be you could buy 20K/month regardless of your MR balance, and this was something I saw announced 2 years or so ago. I've done it several times. Then I was told very clearly and sternly on Feb 27 that this could be done only when you did not have that balance in account--and they even REVERSED my last month's purchase which I thought was astonishing. As I have separate Personal (Green), Gold, and Plat cards, I simply opened MR account #2 for the Personal card and disassociated it from the Plat.

If the rules have changed again to allow purchase up to 500K per year, that's news to me.

WOW! WOW! I am happy.

Phoenixitc, you are the best!

Thanks for bringing that website info to my attention. You are right. Effective March 2002, the policy has been changed. I confirmed it just now with Membership Rewards.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by First in Class:
It used to be you could buy 20K/month regardless of your MR balance, and this was something I saw announced 2 years or so ago. I've done it several times. Then I was told very clearly and sternly on Feb 27 that this could be done only when you did not have that balance in account--and they even REVERSED my last month's purchase which I thought was astonishing. </font>

Interesting. I don't doubt what you say, it's just that it's not spelled out in the T&C. The more I think about it, it probably doesn't really matter, especially considering that the purchase limit is now 500K per year, instead of 20K per month. Here's what I mean: let's say that you had 100K points, and wanted to convert these to 100K miles. If what you say is true, they won't let you purchase the miles, since you already have enough points. So be it. Transfer the points, leaving your MR account empty. Then, when you need to use the 100K points you wanted to keep in your bank, just buy them at that point. As long as they don't discontinue the points purchase program, it's probably better for you anyway to defer the purchase until absolutely necessary. Although, I do know the joy of seeing a large points/mileage balance on your statement. It's almost better than money in the bank for us mileage junkies.

Just curious as to whether anyone has bought 500,000 points. After reading a few of the comments, it sounds rather tempting...and I was really just wondering if anyone had in fact done it..and did you do it in one whack, or in different transaction. And did you experience any problem getting the posting to the proper account done in a timely fashion..???

Gui,

I have purchased 20,000 mile increments at least 10 different times, and transferred them to Delta. Always pretty expedient...less than 5 days to post.

I will likely purchase 100,000 miles next time I need them, as it is a good deal for many F or C class international airline rewards rather than paying full or even discounted fares.


[This message has been edited by First in Class (edited 03-31-2002).]

Still a bit intriqued with the notion of buying 500,000 points. As I understand this is allowable provided I transfer directly to the participating account...in this case my Delta Skymile Account. Does it matter if I already a balance of several hundred thousand miles in this account. Also, I am still curious to know if anyone has done this in one transaction...or a least only a few transactions...and what reaction did you get from the person at Amex MR on the other end of the phone when you did this? After pursing the small print in the MR 2002 directory it does not appear that there is some proviso that would preclude anyone from buying 500,000 miles as a maximum purchase in one calender year. Am I seeing this clearly...or put another way..What am I NOT seeing here ?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Gui:
Still a bit intriqued with the notion of buying 500,000 points. As I understand this is allowable provided I transfer directly to the participating account...in this case my Delta Skymile Account. Does it matter if I already a balance of several hundred thousand miles in this account. </font>

Amex has no way of knowing your current airline mileage balance. The purchased miles transfer to the airline in the same manner as if you had the points balance. Actually, when you make the purchase, it's done as two steps - the purchase itself results in a MR points deposit, then a transfer occurs to your choice of airline programs. As far as the transfer is concerned, it acts just like any other transfer of a MR points balance.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Also, I am still curious to know if anyone has done this in one transaction...or a least only a few transactions...and what reaction did you get from the person at Amex MR on the other end of the phone when you did this? After pursing the small print in the MR 2002 directory it does not appear that there is some proviso that would preclude anyone from buying 500,000 miles as a maximum purchase in one calender year. Am I seeing this clearly...or put another way..What am I NOT seeing here ?</font>

I haven't purchased 500k miles in one transaction. I have done a couple of 20k purchases back when that was the limit per month. Even a 20k purchase seemed to catch the MR rep off guard, but they really didn't fight it. I got the sense that not too many people purchase miles at all, let alone a large number of them.

Since most people seem to value airline miles in the 1-2 cent range, only a relatively few people are going to be willing to buy them at 2.5 cents a mile. But, if you have a use for them that's worth at least 2.5 cents, I think the MR purchase program is great.

Here's a thought...

Did we miss an opportunity to transfer buy/transfer 500k to CO and benefit from the 25% bonus that expired on March 31st? That would have been 125k!

Anyone know if this is available for non-US cards?

I am still a bit intriqued by the possibiity to purchase 500,000. However, I am a bit confused as to the maximum limit of " buying MR points". If one reads the fine print in the 2002 FHR&S, it clearly states the one may purchase points in 1000 increments not to exceed 20,000 per month. However, if one reads the fine print in the 2002 MR catalog it clearly states that one may purchase upto and including and not to exceed in a calendar year 500,000.
Which is it? Can anyone speak from experience. I know that many of you have purchased 20,000 points in a given month before. I am still trying to determine what is the deal. I about had myself talked into going for it and purchasing the 500,000 but then read the conflicting language regarding the maximum allowable points that may be purchased.

So, do you get MR on the $12,500 you spend to buy the 500K points making 512,500?

sdix,

Unfortunately you cannot obtain MR points for buying MR points.

Not sure if that is 500,000 MR points...that would need to be moved directly and immediately upon purchase to MR redeption account..such as airline or hotel, etc. PLUS $12,500 MR Points for buying the points. It is not clear on the language if the purchase price of 500,000 MR Points, and or even the 20,000 MR Points qualify for additional MR points. I had not thought about that...but hey it does beg the question if anyone knows.
My basic question however, was whether anyone knows for sure what the maximum limit per year for purchasing MR poings.Is it 20,000 per month. Or is it 500,000 in a calendar year. As mentioned, the 2002 FHR&S fine print says 20,000/month..while the 2002 MR Catalog Book states 500,000 in a calendar year

Sorry Eperaltaotero....did not read your response before my last post. Guess answers that part of the question...thanks alot

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by influential:
Anyone know if this is available for non-US cards?</font>

Bumped, as I would like to know the answer to this too.

Can MR points be purchased online, or only by phone?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by monahos:
Can MR points be purchased online, or only by phone?</font>

You gotta call 'em.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by yyzflyer:
Bumped, as I would like to know the answer to this too.

</font>


I also want to know the answer..

Sorry, I don't think, that it's possible for non-us cards, as every country that issues it's own amex-cards also usually has it's own terms and conditions concerning the mr-program.

Even the UK-based Int.-Dollar-cards shouldn't work for that reason.

Axel