Will Amex take back MR points or Cash Back for this?

[Mycreditjourney2020]

My local hardware store codes as a grocery store due to it having a small ( three aisles and a deli counter) grocery store in it.  So anything I've ever bought from eggs to ant traps to lumber, I get my 4 MR points per dollar or 6% on my BCP.  These have always been < $100 purchases.

I have some home renovations totaling about $15K in materials coming up. I'd like to use my Amex Gold either by itself or in conjunction with my BCP to make these purchases due to high MR points and cash back.  My concern is that I usually only spend about $200-$300/month on groceries ( at an actual grocery store) so when all the sudden I put these high spends and they code as groceries, I assume it's going to raise a flag and Amex will look to see what was purchased and see it wasn't actually groceries.  I've read they can see specifically what is purchased if they so choose.

If I put these materials on one or both Amex cards and Amex sees that it wasn't groceries purchased, will they take back points/cash back?  Thanks in advance for any insight.

[redpat]

IMO, if that is how that store is coded by amex then it shouldn't matter.  That Hardware store will have a higher merchant charge from amex. 

Don't worry you probally wouldn't be the first...... 

[K-in-Boston]

redpat, AmEx fees aren't always more than on other card networks.  (In many cases they can be less than Visa Signature, Visa Infinite, World Elite MasterCard, and particularly business and international MasterCard products.)  It depends on the merchant setup, and whether they process directly with Amex (and if so whether their merchant processor charges a pass-through fee), or through their merchant processor with OptBlue (and whether their markup is artificially higher "because everyone knows Amex is more expensive" and they bought into that from their salesperson).  Many small businesses use point of sale systems with flat rate credit card processing as well.

OP, whether Amex flags your transactions depends on a number of factors.  Are you making all of these purchases at once or over a period of time?  If the merchant passes through Level 3 transactional data, then Amex is privy to a line item detail of what was purchased.

[Mycreditjourney2020]

K-in-Boston,

I do plan to make the purchase at once, if possible.  I'd have to check Spending Power with the Gold Card as the most I've spent in one month is $4000, biggest purchase at once was $2k.  The BCP has a $25K limit.

I mean obviously I have nothing to do with a stores MCC and I'm not buying $15K in gift cards, lol.  I'd be buying building

materials so not unauthorized items.  It's not like I am Manufacturing my spend, it really comes down to using my BoA Cash Rewards and go to Home Depot or Lowes at 3% cash back or Amex for the MRs or 6% CB.

[redpat]

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@K-in-Boston wrote:

redpat, AmEx fees aren't always more than on other card networks.  (In many cases they can be less than Visa Signature, Visa Infinite, World Elite MasterCard, and particularly business and international MasterCard products.)  It depends on the merchant setup, and whether they process directly with Amex (and if so whether their merchant processor charges a pass-through fee), or through their merchant processor with OptBlue (and whether their markup is artificially higher "because everyone knows Amex is more expensive" and they bought into that from their salesperson).  Many small businesses use point of sale systems with flat rate credit card processing as well.

OP, whether Amex flags your transactions depends on a number of factors.  Are you making all of these purchases at once or over a period of time?  If the merchant passes through Level 3 transactional data, then Amex is privy to a line item detail of what was purchased.

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K-B, I have some clients that are getting charged different merchant rates based upon the card used.  It seems the higher reward cards have a higher merchant fee.  Maybe they are mistaken but I hear them complain all the time.

[BijouMan]

The POS terminal, no matter how sophisticated, only sends the total transaction amount to the payment processor, not the itemized list. If it did, you would be able to see everything you bought in your transaction register, but the only information sent to the issuer is the merchant name, location, merchant category code, currency and amount.

[K-in-Boston]

@BijouMan many larger retailers send Level 3 transactional data to their card processors as it results in lower merchant fees.  (Level 1 and Level 2 do not detail items purchased.)  From a recent Amex statement:

This is why the Amex RAT is able to say "you bought $5,000 in Visa gift cards at Kroger" therefore you engaged in rewards abuse.

Edit:  As OP is purchasing from a local hardware retailer, it's unlikely that they are submitting Level 3 transaction data, however.  The concern would just be more from the "why are they spending $15k on groceries" perspective.

[Kforce]

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I use my local hardware store a lot.

I believe in supporting local business.

The 3% vs 5% becomes nothing, when looking at price between a local hardware and Lowes or Home Depot.

I would be shopping by item prices not credit card rewards.