Good morning everyone, my American Express Platinum Charge Card statement just closed and I noticed that there were a lot of “important changes” from American Express. Most of the time these “important changes” are minor changes in wording to the cardmember agreement, but in the most recent statement, there are some relevant changes to how AMEX Membership Reward points are earned and redeemed. Here is a quick summary of all the changes:
- Late payment fees are going up from $37 to $38
- Returned payment fees are going up from $37 to $38
- If you do not pay the amount due by the closing date of your next billing period, you will forfeit all points earned during that period
- If you return an item and receive a statement credit, the points you earned from that purchase will be reversed
- If reversed points make your account balance go negative, all future points earned will be applied to your negative balance
All the aforementioned changes go into effect on January 1, 2017. It seems like American Express is really cracking down on churners and MSers, especially on AMEX Platinum Charge Cardholders. Here is page 1 of 5 showing the new changes:
Here is page 2 of 5 showing the new changes:
Here is page 3 of 5 showing the new changes. Basically, if you do not pay your credit/charge card bill by the due date, you will forfeit all the points you should have earned during that period.
Here is page 4 of 5 showing the new changes. Basically, if you return an item or get a refund for a purchase you made with your credit/charge card, the statement credit will cause a reversal in the number of points you earned from that purchase. A negative balance may occur as a result of the points reversal.
Here is page 5 of 5 showing the new changes. If your points balance becomes negative either from a points reversal or if you are “ineligible for an additional points incentive award” (aka sign up bonus or targeted spending offer), all future points that you earn will go toward eliminating the negative balance. After that, your points balance will become positive.
A few questions…
- Will American Express let you close a credit/charge card with a negative points balance? Will they charge you for having a negative points balance? What value will they assign for each AMEX Membership Reward point?
- What happens if you receive a refund to a closed American Express credit/charge card? Will they pull AMEX Membership Reward points from a linked AMEX Membership Reward account to account for the points reversal?
I don’t have any answers to the above questions, but it sounds like American Express is ready to fight credit card churners and MSers. I expect to see some interesting stories come out after the new changes go into effect on January 1, 2017.
If you have any questions, please leave a comment below. Have a great day everyone!