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Old Dec 8, 18, 3:11 pm
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 3,843
Originally Posted by tsmith12 View Post
Haha, the free room (especially 1-4) can't cost them that much to separate 15k spend from 40k. I barely had any spend on the 15k meter this year even though I qualified for Diamond.
If we were playing the system legitimately, you would be correct. Spending $15K on an Amex card for real spend should bring Amex swipe revenue and merchant fees that are far more than the cost of a level 1-4 room. But we aren't playing according to their playbook. I suspect (but have absolutely no knowledge of) that Amex gets almost nothing from a merchant for their selling a GC. So revenue is short-changed in that situation and they wind up losing money. Thus the need to track your spend. And how hard is it to track SMVGC purchases??

With the above being said, once programed and coded into the system, I imagine it costs them nothing to follow your spend and allot it to the appropriate bucket. If they say that bucket "a" qualifies for a free room night and bucket "b" doesn't, how much is Amex spending to categorize the bills to the appropriate bucket and report out the results?
UA does that routinely for every elite member as they climb the status ladder using both EQM's and EQD's and the earning algorithm is much more complex than Amex
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