Originally Posted by
shel
Just read from another thread that Amex is not giving cash rebate to "reload" cards. It's quite surprising that no discussion here. I checked the T&C in Amex site and indeed it is buried under "Terms and limitations apply" -- you have to click the tiny sign (†) to see it. (
https://www.americanexpress.com/us/c...sh-back-cards/)
Now the question becomes whether gift cards are considered "cash equivalents"? It's quite chilling because in that same thread someone reported claw back of reward dollars by Amex (though for a different reason). What if one year later Amex wants you to return all the cash back because it's earns on "cash equivalents"?
Yes, gift cards are considered cash equivalents, and AMEX has had that wording in the fine print for a while. They could probably claw back the last several years rewards if they could tell what you were buying and if they felt like pursuing it. As it is now they don't know what you are buying and they have not been pursuing clawing back. They have handled it by putting a cap on the rewards your can earn.