topic Re: Risk of an Amex FR for rapid spend in Credit Cards

Risk of an Amex FR for rapid spend

red259 — Sun, 04 Jun 2017 23:20:28 GMT

So I read an article that talked about Amex FR and one of the things they said that triggers it is rapid spend on a new card. It made me slightly paranoid but I want to make sure I am on safe ground with what I am doing. I need to spend 3k for the signup bonus. I got the card yesterday. I'd like to meet the min spend today. I have already run 1.2k through the card so I would run another 1.8k through today to hit the 3k mark. The card has a limit of 12.9k or so and I have been with amex since 2014 and have several cards with them. My credit report is solid. Not carrying any balances and I will be paying this amount down as soon as it posts. The 3k in spend is the result of several different charges. This is totally fine right? I'm not someone maxing out my card and I have a history with the company so I don't think amex would really care? In the past I have run charges of a little over 2k through a card in a single swipe, but its just because this card is soo new that I had a slight hestitation. Normally I don't rush to get bonus signups but I have an upcoming trip and those points can really come in handy. Am I being silly?

Re: Risk of an Amex FR for rapid spend

AverageJoesCredit — Sun, 04 Jun 2017 23:26:01 GMT

Silly

Re: Risk of an Amex FR for rapid spend

red259 — Sun, 04 Jun 2017 23:28:30 GMT

@AverageJoesCredit wrote:
Silly

Thank you. Sometimes even with a lot of experience its nice to be reassured. In any event I just sent in like a $550 payment so that should keep the overall balance reasonable.

Re: Risk of an Amex FR for rapid spend

MrDisco99 — Sun, 04 Jun 2017 23:31:00 GMT

$3,000 in the first two days will not go unnoticed.

Slow down.

Re: Risk of an Amex FR for rapid spend

Anonymous — Sun, 04 Jun 2017 23:51:01 GMT

It probably depends on what you're buying. If you're buying a sofa, you're fine. If you're buying $1800 worth of gift cards, anticipate a FR right away.

Re: Risk of an Amex FR for rapid spend

Anonymous — Sun, 04 Jun 2017 23:53:09 GMT

@MrDisco99 wrote:
$3,000 in the first two days will not go unnoticed.

Slow down.

Things are relative. I'm sure many people spend a lot more. I put about $5K in my first two transactions with a new Amex card and there were no issues. $3K isn't that much for Amex's intended audience (which is somewhat different to what they actually have).

There's an approach (in the MS space but still) that it is CHANGES that get you noticed. So if you plan to spend $X regularly, start by spending that straight away. Ramping up can equally invite questions ("Why is the spend increasing, maybe a sign of trouble?")

So your statement is, IMO, far too broad.

Re: Risk of an Amex FR for rapid spend

AverageJoesCredit — Sun, 04 Jun 2017 23:57:22 GMT

I think Op will be ok, Op has history with Amex and previous experiences with big charge single swipe. Of course anything is possible with Amex, but being that its not the first card where Amex doesnt yet know the style of cardholder , should be ok. Enjoy your upcoming trip

Re: Risk of an Amex FR for rapid spend

red259 — Mon, 05 Jun 2017 00:03:28 GMT

@Anonymous wrote:
It probably depends on what you're buying. If you're buying a sofa, you're fine. If you're buying $1800 worth of gift cards, anticipate a FR right away.

Some payments will go via plastiq but they are student loan payments and those charges show up as going to student loan companies. Others were for a new pair of sunglasses with lenscrafters and con ed utility bill, so everything is to a large company in one form or another.

Re: Risk of an Amex FR for rapid spend

red259 — Mon, 05 Jun 2017 00:05:41 GMT

@Anonymous wrote:
@MrDisco99 wrote:
$3,000 in the first two days will not go unnoticed.

Slow down.

Things are relative. I'm sure many people spend a lot more. I put about $5K in my first two transactions with a new Amex card and there were no issues. $3K isn't that much for Amex's intended audience (which is somewhat different to what they actually have).

There's an approach (in the MS space but still) that it is CHANGES that get you noticed. So if you plan to spend $X regularly, start by spending that straight away. Ramping up can equally invite questions ("Why is the spend increasing, maybe a sign of trouble?")

So your statement is, IMO, far too broad.

yea I'm pretty sure I have spent 5k in a month with amex in the past meeting signup etc. Once I hit 3k this card will go in the SD though since its not goo for regular spend. Just the annual night and the signup and hilton stays in the US.

Re: Risk of an Amex FR for rapid spend

Anonymous — Mon, 05 Jun 2017 00:09:46 GMT

@red259 wrote:
@Anonymous wrote:
It probably depends on what you're buying. If you're buying a sofa, you're fine. If you're buying $1800 worth of gift cards, anticipate a FR right away.
Some payments will go via plastiq but they are student loan payments and those charges show up as going to student loan companies. Others were for a new pair of sunglasses with lenscrafters and con ed utility bill, so everything is to a large company in one form or another.

I think you're probably fine, but I'm not personally very familiar with Plastiq or how it works. If you've done Plastiq transactions using Amex cards before, then I wouldn't be worried. I seem to recall Paypal used to trigger FRs, but I could be wrong (that predates my time in the credit card points and miles hobby). In my opinion, credit card companies and banks tend to get most concerned when the activity you're engaged in looks similar to money laundering (such as with MS).

Another factor to consider is whether your income supports that amount of spending, and that's something only you know. If you told Amex you make $10,000 a year and you spend like you make $50,000, then you might attract some attention.

At the end of the day though, don't let fear of FRs control your life. They're annoying, but they're usually not the end of your relationship with Amex.

Re: Risk of an Amex FR for rapid spend

Anonymous — Mon, 05 Jun 2017 05:54:07 GMT

DW has $15K limit After 2 weeks of having it she had 2 transactions for $10K. She paid $5 K the same day it posted. NO fr.

Re: Risk of an Amex FR for rapid spend

JustBPatient — Mon, 05 Jun 2017 15:14:37 GMT

I think it will be just fine. If you are really worried about it, jump on chat or give them a call and just let them know. I have done this a couple of times with no issue!

Re: Risk of an Amex FR for rapid spend

CreditCuriosity — Mon, 05 Jun 2017 16:07:30 GMT

3k rapid spend espeilaly if Amex knows who you are they won't blink an eye as long as your income supports it along with other things.. Amex likes big spend as that is their intended audience or at least use to be.. I put 6-7k spend on my SPG business Amex in about 35 days without an issue and my normal spend on Amex is around 300-500 a month recently on other cards.

Re: Risk of an Amex FR for rapid spend

jamesdwi — Tue, 06 Jun 2017 00:46:45 GMT

silly

spending 25% of your credit limit isn't going to freak them out even if you were new, but you are not new, you have an existing relationship with them. If you other cards have low balances everything will be fine.

Re: Risk of an Amex FR for rapid spend

K-in-Boston — Tue, 06 Jun 2017 01:04:07 GMT

OP, you have absolutely nothing to worry about. My first SPG charge alone was for well over the $5,000 required to meet both my 25k and 10k bonuses in one fell swoop. I've run my charge cards up well into 5 digits in a month several times without them batting an eye. As long as your income supports your ability to pay them back, they are happy to let you use your cards. If it's obvious that you are purchasing a lot of cash analogues, that may set off some red flags, however.

Re: Risk of an Amex FR for rapid spend

Anonymous — Tue, 06 Jun 2017 01:24:24 GMT

You're being silly! I don't see there being any issue at all. I put that tyoe of spend through my Amex when I first got it and no one batted an eye.