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Award fees can not be paid with gift card

Award fees can not be paid with gift card

Old Jul 2, 19, 8:56 pm
  #1  
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Award fees can not be paid with gift card

How come award fees can not be paid with AA gift card?. Exec Plat desk said taxes must be paid with a credit card but we all know a large portion of fees are not taxes. What logic is behind this rule? I am not talking about the minimal $5.60 charge each way for domestic tickets but over the water fees that are in the hundreds of dollars for each ticket. Example LHR>PHX is near $600 for two people.
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Old Jul 2, 19, 9:06 pm
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The British charge ~$250 per ticket in departure taxes in business from London. If you’re booked on an AA metal award ticket, it’s entirely possible that those actually do reflect $600 in taxes. I’ve always thought it unreasonable that they don’t accept gift cards for taxes, though.

You can save nearly all of that by beginning your journey in Dublin and just buying a cheap Ryanair ticket to connect there!
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Old Jul 2, 19, 9:32 pm
  #3  
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It is a protection against fraudulent use of an account

By requiring the account holder to pay the taxes by card on an award issued from the account, there is less chance of someone coming and claiming miles were fraudulenetly used

Unless the award is being issued for travel on BA or IB, the only charges will be taxes ( other than expedited processing fees )

For LHR-PHX , for 1 person, the taxes in business class are $313.10 one way

United States APHIS Passenger Fee Passengers (XA) US$3.96
United States Customs User Fee (YC) US$5.77
United Kingdom Passenger Service Charge Departures (UB) US$59.00
United Kingdom Air Passenger Duty APD (GB) US$217.80
United States Immigration User Fee (XY) US$7.00
US International Arrival Tax (US) US$18.60

Some of the US taxes may be exempt on an award

Last edited by Dave Noble; Jul 2, 19 at 9:38 pm
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Old Jul 2, 19, 9:56 pm
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<<It is a protection against fraudulent use of an account>> THANK YOU. That makes sense but I think they should clearly disclose this on gift cards.
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Old Jul 2, 19, 10:45 pm
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Originally Posted by Centurion View Post
<<It is a protection against fraudulent use of an account>> THANK YOU. That makes sense but I think they should clearly disclose this on gift cards.
Do learn a bit more about those charges, which BA passes through to AA. They’re avoidable in many instances. Carrier Imposed Surcharge / YQ: AA award on BA / British (& IB) & avoiding it
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Old Jul 2, 19, 10:50 pm
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Originally Posted by JDiver View Post
Do learn a bit more about those charges, which BA passes through to AA. They’re avoidable in many instances. Carrier Imposed Surcharge / YQ: AA award on BA / British (& IB) & avoiding it
At $300 , it would seem likely ( unless in economy class ) that the person is booked on AA since the taxes / charges for the journey are approx $300 per person
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Old Jul 3, 19, 12:27 am
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Originally Posted by Centurion View Post
That makes sense but I think they should clearly disclose this on gift cards.
They do in any place I've seen them for sale, which is why I've never bought the discounted cards that were sold at Costco. The main website at https://giftcards.aa.com/ says:
Gift Cards may not be used for ... AAdvantage Award Travel or other non-flight products and/or services sold on AA.com.
I originally figured this rationale was akin to hotels in Europe that insist city taxes be paid by cash (i.e., hotel doesn't want to finance a transaction fee on the part that's just passed to a gov't.
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Old Jul 3, 19, 7:39 am
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Originally Posted by armus View Post
They do in any place I've seen them for sale, which is why I've never bought the discounted cards that were sold at Costco. The main website at https://giftcards.aa.com/ says:

I originally figured this rationale was akin to hotels in Europe that insist city taxes be paid by cash (i.e., hotel doesn't want to finance a transaction fee on the part that's just passed to a gov't.
But I bought lots of straight REVENUE tickets at a 10% at the time.^
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Old Jul 3, 19, 8:18 am
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Other times your can't use a Gift Card:
  • Paying Co-Pay for Mileage Upgrade
  • Paying fare difference when upselling/upfaring a revenue ticket - has to be CC
  • Redeeming a voucher - any balance of the revenue ticket has to be paid by CC
  • Though a quick way around this is to put a reservation on hold at AA.com, call in and have them split the ticket to outbound and return on separate record locators, use voucher for outbound portion (and perhaps some cash to cover anything the voucher did not), pay for return ticket with gift cards (plus cash as needed).
Agreed they are a bit cumbersome to use, I'm sure at the design of AA to keep these funds on GC as long as possible.
Another edition of: Welcome to AA - we're going for something well short of great!
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Old Jul 4, 19, 7:00 pm
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There's a bright side to covering award fees with a credit card. Credit cards often come with a bit of travel insurance coverage. By using one for just the award fees on a flight, delay costs, baggage loss, etc now get covered by the credit card's coverages. I'm not aware of any gift cards having any coverage.
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Old Jul 4, 19, 8:04 pm
  #11  
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Originally Posted by Centurion View Post
<<It is a protection against fraudulent use of an account>> THANK YOU. That makes sense but I think they should clearly disclose this on gift cards.
They do. Sorry that you totally miss it. The terms and conditions are right on the purchase screen on AA website. It is very specific on what can be paid with gift card.

Did you ever read them?
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Old Jul 5, 19, 9:41 am
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Originally Posted by Long Zhiren View Post
There's a bright side to covering award fees with a credit card. Credit cards often come with a bit of travel insurance coverage. By using one for just the award fees on a flight, delay costs, baggage loss, etc now get covered by the credit card's coverages. I'm not aware of any gift cards having any coverage.
This is great advice. I do this often with Chase Sapphire Reserve. Even paying the $5.60 on an award ticket triggers benefits like Chase pays for your hotel if you are delayed overnight.
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