Downsides of selling MR to broker?
#1
Original Poster
Join Date: Dec 2017
Programs: Amex/Aeroplan
Posts: 8
Downsides of selling MR to broker?
I've been clearing close to 1mm MR a month to a broker since I run a ticket brokering agency and we have heavy monthly expenses on our Amex cards. So far everything has been going smoothly but the broker constantly transfers my points to different frequent flyer accounts. Has there ever been an incident where amex will ask why I transfer to so many different accounts? Or is this looked at as "normal"?
#2
Join Date: Feb 2005
Location: Marin County, California
Programs: Amex Centurion
Posts: 412
My understanding is:
1. You can't transfer MR Points to another MR Account.
2. In order to transfer to "so many" frequent flyer accounts is those accounts would all have to linked to additional Amex Cardmembers on your Amex account.
1. You can't transfer MR Points to another MR Account.
2. In order to transfer to "so many" frequent flyer accounts is those accounts would all have to linked to additional Amex Cardmembers on your Amex account.
#3
Original Poster
Join Date: Dec 2017
Programs: Amex/Aeroplan
Posts: 8
1. Yeah we don't do any transfers directly to another MR, only to FF accounts
2. Nope. They pay me more for that option, but there is also the option of transferring to new FF accounts that they create in my name. So we don't add so many additional users.
2. Nope. They pay me more for that option, but there is also the option of transferring to new FF accounts that they create in my name. So we don't add so many additional users.
#4
Join Date: Mar 2015
Location: Wisconsin
Programs: Hilton Diamond, Delta PM
Posts: 323
Given that the Membership Rewards terms and conditions expressly say, "Points are not your property. You can't transfer points to any other person or program account." I would say the big downside of selling to a broker is that you're violating the terms and may have your account (and associated credit cards) closed and all points forfeited.
#5
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Why come here and ask if it is OK to commit fraud when the contract (t&c) to which you agreed make that quite clear?
If 1,000 people told you that it's OK and it isn't, that wouldn't make a fig's bit of difference.
If 1,000 people told you that it's OK and it isn't, that wouldn't make a fig's bit of difference.
#6
Join Date: Sep 2012
Location: IAD/DCA
Programs: Bunch of mid-tiers
Posts: 1,034
If I've got this correctly you (or someone) are creating multiple FF accounts (e.g.Aeroplan) in your name and then transferring MR to them?
The issue may not be AMEX as much as the FF programs if so.
The issue may not be AMEX as much as the FF programs if so.
#7
A FlyerTalk Posting Legend
Join Date: Apr 2013
Location: PHX
Programs: AS 75K; UA 1MM; Hyatt Globalist; Marriott LTP; Hilton Diamond (Aspire)
Posts: 56,448
OP is participating in a scam. The sale of brokered miles tickets is fraudulent activity, since the tickets are obtained in violation of program rules and are subject to cancelation by the airline.
#8
Join Date: Dec 2009
Location: New York, NY
Programs: AA Gold. UA Silver, Marriott Gold, Hilton Diamond, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,776
The OP has asked this in two other spots here on FT and one involved a Canadian Amex thread so the card may have different T&C or may not. I still think it's a bad way to go and OP should stop before Amex audits.
#9
Original Poster
Join Date: Dec 2017
Programs: Amex/Aeroplan
Posts: 8
Given that the Membership Rewards terms and conditions expressly say, "Points are not your property. You can't transfer points to any other person or program account." I would say the big downside of selling to a broker is that you're violating the terms and may have your account (and associated credit cards) closed and all points forfeited.
#11
Join Date: May 2014
Location: YYZ
Posts: 527
Actually, he is correct.
Airlines have been know to crack down from time to time when it comes to selling mileage tickets, or in some cases they have scrutinized points transfers if they came from Chase.
Amex, however, has never penalized anyone for selling points.
Even in cases where airline accounts were penalized for bartering of rewards, as long as you sell your points/miles to an honest broker you will not incur any loss. But now we're getting off topic....
Airlines have been know to crack down from time to time when it comes to selling mileage tickets, or in some cases they have scrutinized points transfers if they came from Chase.
Amex, however, has never penalized anyone for selling points.
Even in cases where airline accounts were penalized for bartering of rewards, as long as you sell your points/miles to an honest broker you will not incur any loss. But now we're getting off topic....
#12
Join Date: Apr 2005
Location: LAX
Programs: UA Silver, AA, WN, DL
Posts: 4,091
Nope, not one person ever got in trouble with AMEX over this type of activity. Never, just a myth. In fact, OP should increase his activity even more to show everyone who said it's not allowed and rub it in their collective faces. Include screen shots as evidence that the OP is doing this in earnest (be sure to include MR account number for proof it's the OP).
#13
Original Poster
Join Date: Dec 2017
Programs: Amex/Aeroplan
Posts: 8
Lol ok guys no need to be so sarcastic! I understand that amex would prefer I don't sell my points, but the fact of the matter is there don't seem to be any actual cases of amex penalizing the account holder for doing so! But if there is and I missed it then please advise so I can make an educated decidion next month when I have 1,xxx,xxx MR sitting in my account
To you guys it may seem obvious not to sell your hard earned MR from welcome bonuses, etc. But my company sees this as a serious revenue stream.. $100k+/yr certainly adds up quickly.
To you guys it may seem obvious not to sell your hard earned MR from welcome bonuses, etc. But my company sees this as a serious revenue stream.. $100k+/yr certainly adds up quickly.
#15
Join Date: May 2014
Location: YYZ
Posts: 527
We're still working on clearing out the surplus of airline gift cards that we got when we used to redeem that way!