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I will assess this after a year and see where my spending it. For the gold, depending on how much you value the MR points, one needs to spend 2k to 5k more to beat a 2% card if the AF is changed from 30 to 130.
If my spending won't support this, I will just close it.
Is anyone really shocked if they did plug the loophole? Bloggers, such as TPG, basically did it in. Obviously the credit was never meant to cover GC purchases. I wouldn't be surprised at all if Amex's RAT team has simply decided enough is enough. They want people who are going to use the card for travel purchases (not gift cards), and they of course want some amount of breakage. With the gift card thing, there is no (or very reduced) breakage.
@Anonymous wrote:
It's hard to imagine amex doesn't know this method.
Amex also needs to know, and I bet they do, that shutting down this will lead to loss of many business as well.
Yes, it's a loophole, but amex is a beneficiary of it too.
The thing is that on some level they want to lose that business. Amex doesn't want people who are exploiting loopholes. They want to advertise travel credits and pay them out to legitimate users and/or pay out as little as possible. This loophole makes it too easy for anyone to use, meaning people who really cannot justify the card are justifying it, coming ahead against the AF, and Amex is losing money.
It sucks, but I don't think they will lose any business they really are concerned about
I'm hoping this will make the Centurion Lounges less crowded.......
@Anonymous wrote:
Yea it sucks because I literally just got the BBP to compliment my gold. My AF is due in October so I will go from there.
So basically you buy a gift card then use it as a partial payment towards a flight and it should trigger the credit?
idea is that amex will reimburse anything around 100 or less coming from an airline, because it thinks that much amount cannot be a ticket, so it must be a fee.
this seems to be the case at least with delta, as people has reported amex credit 100 or more even if its ticket cost.
this has not been tested with AA, at least I don't think it has been tested. But if AA GC is out of the window, this may just worth a try.
@kdm31091 wrote:
@Anonymous wrote:
It's hard to imagine amex doesn't know this method.
Amex also needs to know, and I bet they do, that shutting down this will lead to loss of many business as well.
Yes, it's a loophole, but amex is a beneficiary of it too.The thing is that on some level they want to lose that business. Amex doesn't want people who are exploiting loopholes. They want to advertise travel credits and pay them out to legitimate users and/or pay out as little as possible. This loophole makes it too easy for anyone to use, meaning people who really cannot justify the card are justifying it, coming ahead against the AF, and Amex is losing money.
It sucks, but I don't think they will lose any business they really are concerned about
I completely agree with you on this.
The only small caveat is that when you fly premium cabin and/or have airline status you already get all these things for "free" that the credit covers, so the GC trick was a nice way for those people to utilize the credits.
As someone that has $550 a year in Amex Airline credits. It won't make me run to cancel my cards but if this pans out it will make me focus on the earning potential of the cards more as I will have to offset those AF's somehow.
Thankfully I've already used all $550 of the airline credits for this year.
Here's to hoping that Delta GC's dont change, as that will be my stratergy for next year. Will be stockpiling these for a rainy day when my AA flying will be over.