Is this just a money grab by DL?
Jul 22, 2019, 7:04 am
#1
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Original Poster
Join Date: Jun 2019
Programs: DL DM, Marriott Gold, Hertz President's Club
Posts: 141
Is this just a money grab by DL?
Between my Amex's, Chase and Citi cards I've transferred points to numerous airlines and there's never been a charge. I went to transfer Amex MR points to DL and there was a fee to do so. My sense is that DL charges Amex for the points transfer and Amex passes on the charge to the customer.
Is this just a money grab by DL?
Is this just a money grab by DL?
Jul 22, 2019, 7:36 am
#2
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,055
So apparently you believe AMEX is lying when they make this statement?
"Every time you transfer points into a U.S. airline frequent flyer program, your Linked Card account will be charged an excise tax offset fee of $0.0006 per point (with maximum fee of $99). We charge this fee to offset the federal excise tax we must pay when you transfer points. We may offer you the option to use points to pay this fee. You will be able to review these details before completing the transfer."
"Every time you transfer points into a U.S. airline frequent flyer program, your Linked Card account will be charged an excise tax offset fee of $0.0006 per point (with maximum fee of $99). We charge this fee to offset the federal excise tax we must pay when you transfer points. We may offer you the option to use points to pay this fee. You will be able to review these details before completing the transfer."
Jul 22, 2019, 7:57 am
#3
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So apparently you believe AMEX is lying when they make this statement?
"Every time you transfer points into a U.S. airline frequent flyer program, your Linked Card account will be charged an excise tax offset fee of $0.0006 per point (with maximum fee of $99). We charge this fee to offset the federal excise tax we must pay when you transfer points. We may offer you the option to use points to pay this fee. You will be able to review these details before completing the transfer."
"Every time you transfer points into a U.S. airline frequent flyer program, your Linked Card account will be charged an excise tax offset fee of $0.0006 per point (with maximum fee of $99). We charge this fee to offset the federal excise tax we must pay when you transfer points. We may offer you the option to use points to pay this fee. You will be able to review these details before completing the transfer."
So is this unique to only Amex & DL? I've transferred Chase UR points to UA and never paid a fee, and also just did a dummy attempt to transfer them again and there was no fee associated. So this fee being called an excise tax is unique to Amex and Delta.
Jul 22, 2019, 7:59 am
#4
formerly jackvogt
Join Date: Dec 2015
Location: Atlanta, GA
Programs: Delta SkyMiles,
Posts: 822
It's unique to AMEX not Delta.
Jul 22, 2019, 8:11 am
#5
FlyerTalk Evangelist
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I appreciate the info, but not sure why it needed to be with a side of snark. I asked a question, not accusing anyone - Amex or DL - of lying.
So is this unique to only Amex & DL? I've transferred Chase UR points to UA and never paid a fee, and also just did a dummy attempt to transfer them again and there was no fee associated. So this fee being called an excise tax is unique to Amex and Delta.
So is this unique to only Amex & DL? I've transferred Chase UR points to UA and never paid a fee, and also just did a dummy attempt to transfer them again and there was no fee associated. So this fee being called an excise tax is unique to Amex and Delta.
Jul 22, 2019, 8:11 am
#6
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Thank you, appreciate the info. I've never transferred Amex points to B6 or HA, so only experienced this with DL. However, when I've transfered Amex points to Aeroplan, Virgin or Singapore there was never a fee so it caught me off guard and seemed like a money grab by DL.
Jul 22, 2019, 8:13 am
#7
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Here is accusing Delta - "Delta rips off Amex customer by charging fee to transfer points." See the difference??
Jul 22, 2019, 9:59 am
#8
Join Date: Aug 2006
Location: SJC
Programs: DL PM MM, Marriott Titanium
Posts: 3,276
Calling something a money grab is accusatory.
Jul 22, 2019, 10:06 am
#9
Join Date: Jul 2018
Programs: HHonors Lifetime Diamond, Delta Tupperware Medallion, National EE
Posts: 158
I honestly don't see a difference between the two statements other than the number of words used to convey the same sentiment.
Jul 22, 2019, 10:09 am
#10
Join Date: May 2015
Location: DCA
Programs: AA EXP, DL FO, Marriott Titanium
Posts: 6,712
It's really just a money grab by Amex. No other issuer with transferable points passes along an excise tax in this way.
Jul 22, 2019, 10:19 am
#11
FlyerTalk Evangelist
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Thank you, appreciate the info. I've never transferred Amex points to B6 or HA, so only experienced this with DL. However, when I've transfered Amex points to Aeroplan, Virgin or Singapore there was never a fee so it caught me off guard and seemed like a money grab by DL.
I would guess Aeroplan, SQ, VA not being US carriers/programs they aren't subject to the Federal Excise Tax.
Jul 22, 2019, 10:20 am
#12
Join Date: Oct 2015
Location: Economy, mostly :(
Programs: Skywards Gold
Posts: 7,801
Thank you, appreciate the info. I've never transferred Amex points to B6 or HA, so only experienced this with DL. However, when I've transfered Amex points to Aeroplan, Virgin or Singapore there was never a fee so it caught me off guard and seemed like a money grab by DL.
Jul 22, 2019, 11:01 am
#14
Join Date: Oct 2012
Location: Toronto, Canada
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Jul 22, 2019, 11:08 am
#15
Join Date: Aug 2018
Programs: DL Plat, Marriot Plat
Posts: 349
I just transfer AMEX points to Aeroplan, no fee charge.