Location: SF CA USA. FT addict. I love large faceless corporations. And they cherish me in return (sometimes). ;)
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MM, the answer is hinted at by this post (#25 in this thread):
Quote:
Originally Posted by schmare
I did this Amex thing last year for a while, getting my $1000 worth of TCs each week, and immediately depositing them at my bank.
After roughly 6 weeks I got a letter from Amex advising that they were looking into "suspicious activity" on my credit card account. I stopped, and never heard anything from them again....
I think it's clear that no one should push this thing to its limits. I suspect, however, that someone will. And then it'll be all over (if not before).
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Itsme: Yes, my daughter is going to COA. I haven't asked her how she rates the food. She's off campus (because of the dogs) so she eats the majority of her meals at home.
Marathon Man: We didn't fly with the dogs. We drove there, and I will fly on Saturday to drive back. Do not know if you can passage with miles and they are big dogs. I think the airlines charge about $80 to transport a dog - at least that was the case of a friend, but she had a tiny dog that she took into the cabin with her.
I have signed up my daughter for every program, but she isn't "in to it"", just thinks her Mom is a frequent flyer nut, and I drive her crazy over which card to use for which kind purchase. I gave her secondary cards to my accounts from age 15 so I wouldn't miss the miles and she would get experience with CC before being away at college. I didn't want her to go wild. She now has a Citi AA card in her own name (fee waived) so she is able to earn miles in her own account and build credit. Most of what she gets are from my accounts. She has a spg account, so I could transfer points into her account if she needed miles to be topped off. It might be time to get her her own spg amex and get bonus points, however her income is really too low to get one legitimately. Maybe we'll wait until she has her money to spend.
Let's not forget that there is a limit of $1000 per week so there is no way to go in daily and do this. Also, I think schmare's problem may not have been active buying of checks, but the immediate depositing of these checks all on the same day in the same place. I'll let you know if I hear from them since I have done this for close to 6 weeks, but I have not deposited the checks. I got some for a friend who wanted some checks as a safer way of keeping her emergency cash so those checks won't be cashed anytime soon. I'll let you all know.
1. Do we know for sure that if you buy at a franchise AMEX office, you will be charged a fee? 1000 miles for a $5.00 fee is still a half-cent a mile, and puddingguy says he'd snap at that one. Anyone know what the fee is/might be?
2. If we call the office in question, will they know what we're talking about?
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Quote:
Originally Posted by BigLar
So:
1. Do we know for sure that if you buy at a franchise AMEX office, you will be charged a fee? 1000 miles for a $5.00 fee is still a half-cent a mile, and puddingguy says he'd snap at that one. Anyone know what the fee is/might be?
2. If we call the office in question, will they know what we're talking about?
Fee aside, I think the bigger concern is that a franchise would process is as a cash advance rather than a purchase which on most FF credit cards will run out about 20-25% interest on the spot, if I'm not mistaken. Those 1000 points aren't worth $20-$30 to most.
peace,
~Ben~
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Fee aside, I think the bigger concern is that a franchise would process is as a cash advance rather than a purchase which on most FF credit cards will run out about 20-25% interest on the spot, if I'm not mistaken. Those 1000 points aren't worth $20-$30 to most.
In that worst case scenario, you could avoid the interest by pre-paying your AMEX to get a credit balance. The bigger expense would be a cash advance fee if it were charged.
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Quote:
Originally Posted by rrgg
In that worst case scenario, you could avoid the interest by pre-paying your AMEX to get a credit balance. The bigger expense would be a cash advance fee if it were charged.
Right, the fees from most FF cards are x% for an advance, but a minimum of $10 in fees regardless of the amount OR x% for an advance or $20, whichever is greater. (usually 2-5% in fees)
Cash advances begin accruing interest immediately / have no grace period - are you sure that carrying a credit balance would mean there would be interest of $0? Knowing CC companies, I'd imagine that they would charge me the cash advance fee and interest and reconcile that balance against my outstanding credit only once the bill is processed for the month.
All that aside, you don't earn points/miles for cash advances -- only purchases -- so if this is a concern, there's no reason to bother with this scheme anyway.
peace,
~Ben~
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Robin: "What do you think, Ben?"
Me: "There's time for thinkin' when we're dead! Let's go!"
Cash advances begin accruing interest immediately / have no grace period - are you sure that carrying a credit balance would mean there would be interest of $0? Knowing CC companies, I'd imagine that they would charge me the cash advance fee and interest and reconcile that balance against my outstanding credit only once the bill is processed for the month.
All that aside, you don't earn points/miles for cash advances -- only purchases -- so if this is a concern, there's no reason to bother with this scheme anyway.
Well the whole deal dgordon posted rests on the fact that AMEX will process this as a purchase anyway. Pre-paying the balance is just a way to mitigate the risk for someone who isn't convinced, and fears a cash advance.
I guess I'll have to double check the very latest T&C in case something has changed, but yes pre-paying means you'll avoid interest. Let's say you took a normal cash advance on the 1st of the month and then sent a payment which arrived on the 14th. Your statement closes on the 21st of the month. The bank will bill you for 2 weeks of interest, not 3. By the same reasoning, if you had a credit balance you'd pay no interest.
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Partial update. My statement is not yet available online so I don't know the details of what happened on my bill, but I was charged $9 as a fee which AMEX refunded. What got transferred to SPG was 812 points short of what I should have gotten. The agent said it shows in the system that I will get the 812 transferred with my next statement - closing June 27th. She agreed that it doesn't make sense. Nothing was said that it had anything to do with the $1000 being treated as a cash advance or emergency funds - which would have left a difference of 1000 points short, not 812. By tomorrow I should be able to see my statement online. I still have to call the travel agency that "sold" me the TC as emergency funds. I'll let you know.
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Update
The statement has appeared. THAT purchase was treated as a cash advance and I was charged 3.91 in interest, not the $9 that the rep thought, but she is crediting me $9. No other fees were showing. I pay my bill along the way, so the average daily balance was $204 which is why the $1000 at 23+% was that low. It look about two weeks to finally appear on my account with the two week later date being the one that showed. I have no idea if the underpayment of points has any relationship to this but the rep said it shows that I am scheduled to get 812 more points. I have a call to the travel agency that did this so I don't know what they will say, and if it can be done as a purchase, not a cash advance with them.
I just called my nearest center where i can get Amex TCs , they told me that they will charge my CC as a cash advance, so if they do it like this then amex will treat it as cash advance also? if they do then no points? am i right?
We do sell AMEX travelers cheques fee free to American Express cardholders.
When you use you AX card to purchase travelers cheques, it is American Express that considers their prepaid products, as a cash transaction on your account. We are an American Express affiliate, and we do sell their products but they must approve the purchase on your card.
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Unfortunately it takes about a week for the charge to appear on your credit card, and then the end of the statement for the points to transfer to SPG. And given the limitation of $1000 per week, you'd have to do a little better advance planning. But it sounds nice.
I suspect, however, that someone will. And then it'll be all over (if not before). 
