American Express / Continental have the promotion featured on their homepage now that allows consumers to get 500 bonus miles for a minimum purchase of $750 of American Express "currency."

American Express waives all of their fees (except shipping/handling of $5.95) for all "currency" orders made by Amex Gold and Platinum cardholders.

So as a Platinum Amex holder with Membership Rewards, can you make the purchase and accrue lots of CO miles for a $5.95 fee ...and then just cash the Amex checks to pay the Amex bill?

Example: buy $1,000 and get 1,506 miles/points for $5.95 every 14 days? (Or 9,036 miles for $35.70 ...the most possible for the promotional period ending 12/31.)

According to the TravelFunds site, "There's a $14.95 Issuance fee" -- also, will Amex let you pay your bill with this? Somehow I doubt it.

i was about to make a purchase but found the fees to be egregious.

I think the question is whether this is waived if you pay with your Amex Gold or Platinum Card.

Even if you can't pay your Amex bill with Amex funds, you could certainly use the funds to pay for something else - rent? your Visa or MasterCard bill?

I don't know whether depositing the funds in your savings account would be considered check kiting, and thus be illegal.

The extra miles don't seem worth the time trouble and effort even for $5.95 if all I can use the card for is the same stuff I can use my regular amex for.

I was just making sense of this site, and my take on it is as follows:

1. The 500 CO bonus applies only once, if you by at least $750US of product.

2. For traveller's checks, there is a $5.95 mailing fee only. (I went thru the entire purchase process up to clicking OK)

2. There are also these TravelFund Cards -- which seem like pre-loaded cards that can be used as a 'debit card', although you are debiting the amount on the card and not a linked checking account. They can be reloaded. Reg mailing is $0. THere is a $14.95 processing fee BUT it is waived until 12/31/03. (I went through the purchase process but could not get a final total including all fees before being in my cc info, so I cannot vouch for surprise fees. That really ticks me off)


Sooooo ...... the options are:

1. Traveller checks: Buy $750US + $5.95 fee = $755.95.
Get 500 CO miles and 756 points from your AmEx or CC.

2. TravelFund Card: load with $800 (only available in even hundreds) + no mailing fee + waived processing fee = $800
Get 500 CO miles and 800 AmEx/CC points.

It could turn out to 1256 miles/points for ~$6, or 1500 mile/points for nothing. BUT you would have to use your AmEx card to avoid it being considering a cash advance.


BIG CAVEAT I pulled this from the Website FAQs:

If I use my credit card to purchase a TravelFunds Card, will I be charged a cash advance fee?
If you use your American Express Card, you will not be charged a cash advance fee. However, if you use another credit card, you may be charged a cash advance fee depending on the card issuer�s policies. You should check with your card issuer to understand their policy.


What fees apply to the TravelFunds Card?
$14.95 Issuance fee per Card (waived here)
$5.00 Reissue fee per Card
$9.95 Express Delivery fee
$2.50 ATM fee
$5.00 Reload fee
$10.00 Cancellation fee
$15.00 Shortage fee
$5.00 Paper Transaction History Request

So, if you can afford to shift around $750-800, this might be a decent deal.



[This message has been edited by DaDOKin DC (edited 10-12-2003).]

This would allow you to use the AMEX to get travellers checks and use it at merchants who do not accept AMEX cards.

Hmm...

Also from the TravelFunds FAQ
Can I earn Membership Rewards� points when I purchase a TravelFunds Card?
No. Membership Rewards� enrollees cannot earn Membership Rewards program points for purchasing the TravelFunds Card.