What do to with AMEX Reward Points?
#1
Original Poster
Join Date: Apr 2011
Posts: 14
What do to with AMEX Reward Points?
I've had the card for about 3 months now and I have just over 100k points. My visa offers 1% cash back and I usually get about $2000-$4000 annually just from the offer. I looked on the AMEX Reward site today and cash back offer was 0.5%? Is there anyway I could get close to 1%? Can I call and negotiate with a CSR to see if they are willing to budge or do I need to get a whole bunch of gift card and try to resell them? Any inputs are appreciated.
#2
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Welcome to Flyertalk.
The best use of Membership Rewards points is transfer to an airline frequent flyer program and redeem for expensive tickets, typically intercontinental business or first class. Used in this fashion the points are worth at least $0.02, but more if there is a transfer bonus.
The next best use is the Pay with Points program. This allows you to purchase travel on americanexpress.com/travel, and claim a credit to offset the charge by redeeming points. If you have a Green or Gold account the value is typically $0.01 per point. If you have a Platinum or Centurion account the value is increased to $0.0125 because there is a 20% point rebate.
Third would be merchants giftcards, typically $0.01 per point.
Fourth would be American Express giftcards, statement credits or other cash equivalents, typically $0.005 per point.
Worst is redeeming points for merchandise.
I am surprised you are using a 1% cashback card because 2% cards are readily available.
The best use of Membership Rewards points is transfer to an airline frequent flyer program and redeem for expensive tickets, typically intercontinental business or first class. Used in this fashion the points are worth at least $0.02, but more if there is a transfer bonus.
The next best use is the Pay with Points program. This allows you to purchase travel on americanexpress.com/travel, and claim a credit to offset the charge by redeeming points. If you have a Green or Gold account the value is typically $0.01 per point. If you have a Platinum or Centurion account the value is increased to $0.0125 because there is a 20% point rebate.
Third would be merchants giftcards, typically $0.01 per point.
Fourth would be American Express giftcards, statement credits or other cash equivalents, typically $0.005 per point.
Worst is redeeming points for merchandise.
I am surprised you are using a 1% cashback card because 2% cards are readily available.
#3
Join Date: Nov 2009
Location: Yellow Springs
Programs: AS 75k
Posts: 1,523
Well, if you're up for a somewhat convoluted idea (and being on FT, you probably are ) that gets Amex gift cards (not as good as cash, but close), you could:
1. Sign up for a Delta Skymiles account, if you don't already have one.
2. Sign up for the Amex MR 50% bonus for transferring 50k or more miles to your DL Skymiles account.
2. Get a Amex Gold Delta credit card (can probably find one with a 35k-50k Skymiles bonus).
3. Before 5/31/2011, transfer 100k MR points to your DL Skymiles account yielding 150k Skymiles (plus 25k DL MQMs which makes you a DL Silver Medallion if you care). You have to do it in one transfer to get the full bonus. Cost is $60 to transfer the MR points.
4. Buy Amex gift cards at the Skymiles Marketplace for 10.5k-11k Skymiles per $100 card. I'm not sure why some people can buy the cards at the 10.5k vs 11k rate, but you'll need an Amex DL card to get those rates.
5. With a 35k Skymiles bonus from the Amex Gold Delta card plus the 150k Skymiles from the transfer, you should be able to get $1,600-$1,700 worth of Amex gift cards, so your yield would be 1.6%-1.7% less the $60 cost of the transfer.
1. Sign up for a Delta Skymiles account, if you don't already have one.
2. Sign up for the Amex MR 50% bonus for transferring 50k or more miles to your DL Skymiles account.
2. Get a Amex Gold Delta credit card (can probably find one with a 35k-50k Skymiles bonus).
3. Before 5/31/2011, transfer 100k MR points to your DL Skymiles account yielding 150k Skymiles (plus 25k DL MQMs which makes you a DL Silver Medallion if you care). You have to do it in one transfer to get the full bonus. Cost is $60 to transfer the MR points.
4. Buy Amex gift cards at the Skymiles Marketplace for 10.5k-11k Skymiles per $100 card. I'm not sure why some people can buy the cards at the 10.5k vs 11k rate, but you'll need an Amex DL card to get those rates.
5. With a 35k Skymiles bonus from the Amex Gold Delta card plus the 150k Skymiles from the transfer, you should be able to get $1,600-$1,700 worth of Amex gift cards, so your yield would be 1.6%-1.7% less the $60 cost of the transfer.
#4
Join Date: Oct 2008
Location: BOS
Programs: AmEx Gold PR, BoA Plat Priv
Posts: 73
Hey, mia, could you drop a quick pointer for reading up on such cards? My impression was that they're not exactly readily available. The much-discussed Charles Schwab 2% card has changed owners a few times, I believe, ending up as a targeted offer by Bank of America. I haven't seen any other current 2% offers; the best I could find was BoA Platinum Privileges Visa that gives back 1.5% when redeemed into a BoA account.
#5
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Fidelity Rewards American Express® Cards
This card is discussed two doors down in Other Credit Cards because it is an Amex-network card issued by Bank of America for Fidelity. Most of the threads have been short because the card is very straightforward with no travel-related angle, but this changed recently when a path to convert the points to Aeroplan miles (rather than cash) was added.
Here are a couple:
http://www.flyertalk.com/forum/other...lity-amex.html
http://www.flyertalk.com/forum/other...l#post14912959
This card is discussed two doors down in Other Credit Cards because it is an Amex-network card issued by Bank of America for Fidelity. Most of the threads have been short because the card is very straightforward with no travel-related angle, but this changed recently when a path to convert the points to Aeroplan miles (rather than cash) was added.
Here are a couple:
http://www.flyertalk.com/forum/other...lity-amex.html
http://www.flyertalk.com/forum/other...l#post14912959
#6
Join Date: Jan 2008
Posts: 78
After transferring some of my balance to Skymiles to purchase flights for a trip for my family, I will have about 8,000 or so AMEX reward points left before I cancel next month and avoid the fee. I'm considering a couple options:
a) $80 worth of gift cards to Home Depot and Old Navy
b) I ended up with 25,000 Skymiles leftover, 8,000 more from AMEX would get me to the 32,500 range which would be helpful since it's difficult to get Delta flights (domestic) for only 25K anymore.
c) New promotion from 4/1 through 5/31 for 25% off transfers to hotel programs. This includes 750 AMEX points for 333 Starwood points. Not sure this is a great deal but Starwood points are a decent value.
a) $80 worth of gift cards to Home Depot and Old Navy
b) I ended up with 25,000 Skymiles leftover, 8,000 more from AMEX would get me to the 32,500 range which would be helpful since it's difficult to get Delta flights (domestic) for only 25K anymore.
c) New promotion from 4/1 through 5/31 for 25% off transfers to hotel programs. This includes 750 AMEX points for 333 Starwood points. Not sure this is a great deal but Starwood points are a decent value.
#7
Join Date: Jan 2007
Location: Nashville, TN - BNA
Programs: Hilton Gold, WN RR
Posts: 1,818
(snip)
Wow! Thanks for the post...I'm seriously considering this, as I have 100K burning a hole in my pocket as well...
5. With a 35k Skymiles bonus from the Amex Gold Delta card plus the 150k Skymiles from the transfer, you should be able to get $1,600-$1,700 worth of Amex gift cards, so your yield would be 1.6%-1.7% less the $60 cost of the transfer.
#8
Join Date: Aug 2007
Posts: 558
Where are you seeing this? I only see 15% off. I have Premier Gold. Are you Plat or Cent?
#9
Join Date: Jan 2008
Posts: 78
#11
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
This is prohibited by the Membership Rewards terms, read at least the section titled Points Accrual:
http://www.membershiprewards.com/cat...rmsSplash.aspx
Also note, that Flyertalk prohibits selling, bartering, trading of points, miles etc. Before posting again please take some time to review Flyertalk's rules which are here:
http://www.flyertalk.com/help/rules.php
http://www.membershiprewards.com/cat...rmsSplash.aspx
Also note, that Flyertalk prohibits selling, bartering, trading of points, miles etc. Before posting again please take some time to review Flyertalk's rules which are here:
http://www.flyertalk.com/help/rules.php
#12
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
It depends entirely on how you would redeem the Starpoints. It isn't appealing if the ultimate objective is airline miles.
The standard transfer rate to SPG is 3:1, which means MR 60,000 = SPG 20,000 = 25,000 miles on most airlines.
In previous years the promotional offer was 2:1, which meant MR 40,000 was required to generate the same miles.
This year the offer is only 2.25:1, which means MR 45,000 (rounded down) is required.
This is weak considering that you can transfer Membership Rewards at full value into all three airline alliances, and there have been recurring bonuses for transfers to BA, DL and VS.
The standard transfer rate to SPG is 3:1, which means MR 60,000 = SPG 20,000 = 25,000 miles on most airlines.
In previous years the promotional offer was 2:1, which meant MR 40,000 was required to generate the same miles.
This year the offer is only 2.25:1, which means MR 45,000 (rounded down) is required.
This is weak considering that you can transfer Membership Rewards at full value into all three airline alliances, and there have been recurring bonuses for transfers to BA, DL and VS.
#13
Join Date: Jan 2008
Posts: 78
It depends entirely on how you would redeem the Starpoints. It isn't appealing if the ultimate objective is airline miles.
The standard transfer rate to SPG is 3:1, which means MR 60,000 = SPG 20,000 = 25,000 miles on most airlines.
In previous years the promotional offer was 2:1, which meant MR 40,000 was required to generate the same miles.
This year the offer is only 2.25:1, which means MR 45,000 (rounded down) is required.
This is weak considering that you can transfer Membership Rewards at full value into all three airline alliances, and there have been recurring bonuses for transfers to BA, DL and VS.
The standard transfer rate to SPG is 3:1, which means MR 60,000 = SPG 20,000 = 25,000 miles on most airlines.
In previous years the promotional offer was 2:1, which meant MR 40,000 was required to generate the same miles.
This year the offer is only 2.25:1, which means MR 45,000 (rounded down) is required.
This is weak considering that you can transfer Membership Rewards at full value into all three airline alliances, and there have been recurring bonuses for transfers to BA, DL and VS.
Basically, if I want Starwood points, I can get about 3300 for my 8000 points. Using that strictly for hotels, I have to decide if that is worth the trade off of $80 in gift cards to some stores that I would definitely use them at.
#14
Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
Programs: DL PM/MM, AA ExPlat, Hyatt Glob, HH Dia, National ECE, Hertz PC
Posts: 16,579
While in my head I usually do value Membership Rewards points around $.02 each, in reality I typically receive much greater value than that because of their liquid nature. The ability to bank the points in MR and then transfer them to a number of programs when needed confers a greater value on them, just to give you a few examples:
1) AMEX MR has had a couple of promotions in the past year where if you transfer 25k MR points to Delta you got 50k RDM (redeemable miles) plus 25k MQM (Medallion (i.e., elite) Qualification Miles). A $.02 valuation would put the value at $500, I believe the value was much greater than that, probably closer to $1,000 (even considering the subpar valuation many assign to Delta SkyMiles).
2) Delta has had several promotions in the past few years where x number of partner transactions would yield y number of bonus points. Membership Rewards points count as a partner and for a 1,000 MR point transfer you would effectively get 2,000 SkyMiles.
3) When BA was added as an MR partner there was a promtion where 1,000 MR points = 6,000 BA miles. While I sometimes get frustrated with the ridiculous fees on BA awards, that transfer still far exceeds $.02 per MR point.
4) In general, the reason I always like to keep points in MR (and Diners Club too) is that if you are a few thousand miles short of an award that you have a need to redeem for, those last few thousand points gain an increased value. For example, say you want to redeem for a 25k mile award that will otherwise cost you $500 (which works out to the rule of thumb $.02 per mile valuation), but you only have 24k miles. Are those last 1k miles worth just $20? They wouldn't be to me.
All that being said, if you're just looking to get cash like products in return and not use it for airline or hotel awards (note, hotel transfers are typically a lower value from AMEX MR than airline transfers, though #4 above may still apply if you're a bit short from a specific award you'd like to redeem for) AMEX Membership Rewards is not your best option.
#15
Join Date: Aug 2007
Posts: 558
I was not aware that MR targeted discounts on reward redemption. I know they do it on promotions, and that Plat & Cent sometime get deals, but I don't remember ever seeing a discussion where one MR member saw 15% and the other saw 25%.
I might bite at 750 MR = 1300 HH. That works out to 3.1 HH point per $ spent