topic Re: Amex and cash in Credit Cards

Amex and cash

krmurrayjr10 — Sat, 09 Mar 2019 01:29:58 GMT

I have a mix of credit and charge cards with Amex, and they are the cards I use most of the time.

Some time ago, I enrolled my Platinum card in Amex‘ „Express Cash“ program, which allows the cardholder to withdraw cash at an ATM, which then results in Amex drafting the amount withdrawn from a checking account the cardholder links with the service. My reason for enrolling was to have a backup method of obtaining cash if I were ever traveling somewhere and my debit card was lost/stolen/otherwise not working.

Amex has offered this service for decades, but it now appears based on notices on the most recent charge card statements that Amex is discontinuing this service as of May 1, in favor of treating cash withdrawals at ATMs via the charge cards as cash advances, which are billed on the next statement at a high APR. (I assume that cash withdrawals via their revolvers were always treated as cash advances.)

I assume that this feature was seldom used on the charge cards and Amex stands to make more money treating the withdrawals as cash advances. Cash advances are, of course, never a good idea except as a last resort, and it seems to me that Amex perhaps more than any other lender would get spooked if a cardholder needed one. (My other card issuers only SP my credit once every 1-2 months, but Amex is checking me at least twice each month, so the last thing I would ever want to do is indirectly tell them I need cash NOW...)

Has anyone ever taken a cash advance with an Amex card and experienced any account adjustments as a result?

Re: Amex and cash

Brian_Earl_Spilner — Sat, 09 Mar 2019 01:46:19 GMT

They're not gonna punish you for using a feature they offer. If you abuse it, that's when they get nervous.

Re: Amex and cash

BlueMystic — Sat, 23 Mar 2019 05:38:39 GMT

I've never used it but agree it seems like it would have been a useful thing to have as a backup. Now that they're changing it to be a cash advance, the only way this would be useful is if it was treated like any other charge -- i.e. if you pay in full by the due date, there are no interest charges or other fees. That's how Express Cash used to work, if memory serves.

Re: Amex and cash

UpperNwGuy — Sat, 23 Mar 2019 10:38:12 GMT

I have checking accounts at more than one bank, so I take two debit cards with me when I travel, so I always have a backup without resorting to cash advances on credit cards.

Re: Amex and cash

NRB525 — Sat, 23 Mar 2019 17:30:40 GMT

I don't seem to have the paperwork, but in my recent Platinum app, I thought the disclosure had a 3% fee for the current "Cash pass through from your checking account" if you use your AMEX charger? Even if connected to your bank account?

Then the question becomes, what is the APR that is assigned to the cash advance, after May 1 2019? If that is a 20% APR, that actually could open the possibility of a lower-cost Cash Advance, if one quick-like-a-bunny pays off the cash advance.

Re: Amex and cash

BlueMystic — Sun, 24 Mar 2019 00:05:15 GMT

@NRB525 wrote:
Then the question becomes, what is the APR that is assigned to the cash advance, after May 1 2019? If that is a 20% APR, that actually could open the possibility of a lower-cost Cash Advance, if one quick-like-a-bunny pays off the cash advance.

According to my Cardmember Agreement:

As of 05/01/2019, the Rates and Fees Table [of] the Cardmember Agreement is amended by adding the APR for Cash Advances row under Interest Rates:

APR for Cash Advances: 27.49%. This APR will vary with the market based on the Prime Rate.

The Rates and Fees Table [of] the Cardmember Agreement is further amended by adding a Cash Advance row to the Transaction Fees row under Fees:

Cash Advance: Either $10 or 5% of the amount of each cash advance, whichever is greater.

Part 2 of the Cardmember Agreement is further amended by adding the following new sub-section called Limits on Cash Advances:

Your Cash Advance balance may not exceed:

Zync Card® $3,000

Green Card $3,000

Gold Card $6,000

Platinum Card® $8,000

Centurion® Card $10,000

Effective May 1, 2019, the EFT Agreement will be amended as follows:

The How Express Cash works section is deleted.

So, it certainly appears that the ExpressCash feature is being discontinued.

Re: Amex and cash

NRB525 — Sun, 24 Mar 2019 19:50:18 GMT

Yes, and the combination of a 5% fee / $10 minimum with 27% APR makes it not an appealing backup cash resource.