new AmEx holder and where not to use card question

[jsickz32]

Ive used my PRG evrywhere. From the random food truck to strip clubs. They have never bothered me.

[navigatethis12]

A few years back it was confirmed by American Express themselves that they were profiling customers based on where they shopped and taking actions they felt would reduce their risk. I reckon this has stopped now, but at one point they were doing it. Another reason, in my opinion, that this lender is one of the worst when it comes to ridiculous practices.

[PastorH]

Awaiting my new Amex. Good advice.  what is MS ... FR?

Thanks.

[Anonymous]

MS is Manufactured Spend, where you buy stuff that is equivalent (perhaps after a few steps) to cash.  So you can put lots of money through a credit card, getting lots of rewards, and then get most of the money back to pay the credit card bill.

FR is Financial Review (specifically Amex) where the freeze your card without warning, and then require tax documents from you to prove your income etc.  After the review you can be left as you were, have some credit limits reduced or have cards closed.   This really happens very rarely and is much overblown on this forum.

[PastorH]

Thanks for the wisdom, longtimelurker.

[azguy13]

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@Anonymous wrote:

MS is Manufactured Spend, where you buy stuff that is equivalent (perhaps after a few steps) to cash.  So you can put lots of money through a credit card, getting lots of rewards, and then get most of the money back to pay the credit card bill.

FR is Financial Review (specifically Amex) where the freeze your card without warning, and then require tax documents from you to prove your income etc.  After the review you can be left as you were, have some credit limits reduced or have cards closed.   This really happens very rarely and is much overblown on this forum.

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Agreed

[nyancat]

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@azguy13 wrote:

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@D-Wall wrote:

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@nyancat wrote:

Remember they probably get detailed transaction data too, so hotel rooms should be fine. I'd say avoid anything normally considered "sinful" by the Christian Right along with the Christian Right's favourite shop (Walmart). Both seem to be considered bad habits by Amex that can result in AA. Especially if they're new habits for you (aka if you drink every week on your Amex, no big deal. Never used your Amex in a bar and run up a $100 tab this Friday night? BIG deal)

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I've done this and nothing happened. 

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When I was in college and worked in a bar, I used to do this all the time. Granted, I barely paid for anything there, but I used to buy bottles from them. I would ALWAYS put it on my AMEX and nothing ever happened. I probably put a few hundred a month on it. And before anyone asks, it was not a restaurant, strictly a bar. 

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Exactly, you said it yourself - you did it all the time. Amex doesn't care. It's when your habits CHANGE to include more "sins" and discount stores and cheap fast food - because those changes could indicate a worsening financial situation.

[enharu]

Like longtimelurker said, FR rarely happens. All banks do conduct financial reviews, and they usually take action only in pretty extreme circumstances (such as customer exhibiting signs of default, overextending, etc).

Like everyone said, use your card anywhere you want. They are not going to bother you just because you spent $100 at a bar or club. It sometimes cost more than $100 to even get your foot into a decent club, much less pay for anything else. Its easy to rack up 4-6 digit tabs in a club as well, depending on the individual.


I have seen people do cash advances on their cards on the casino floor just because they are too lazy to walk an additional 3-5 mins to get money at the ATM. Not really a wise move, but if their income can support it, who's to stop them?

None of these is out of the norm, as long as you have the credit history, and more importantly, income, to support your spending habits.

[azguy13]

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@enharu wrote:
Like longtimelurker said, FR rarely happens. All banks do conduct financial reviews, and they usually take action only in pretty extreme circumstances (such as customer exhibiting signs of default, overextending, etc).

Like everyone said, use your card anywhere you want. They are not going to bother you just because you spent $100 at a bar or club. It sometimes cost more than $100 to even get your foot into a decent club, much less pay for anything else. Its easy to rack up 4-6 digit tabs in a club as well, depending on the individual.


I have seen people do cash advances on their cards on the casino floor just because they are too lazy to walk an additional 3-5 mins to get money at the ATM. Not really a wise move, but if their income can support it, who's to stop them?

None of these is out of the norm, as long as you have the credit history, and more importantly, income, to support your spending habits.

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I agree. AMEX is just nice enough to tell you they are doing it vs other lenders who don't make a peep. 

Also, a previous poster mentioned going to fast food restaurants and discount stores. I would love to hear the story of anyone on here who has been AAd for going to McDonalds and shopping at TJ Maxx. My in-laws are very very wealthy and also very frugal and they use theirs ALL the time at these stores. Never once has anything happened to them. I know this because we used to sit around and laugh at how people think of Amex.

Now, if you start spending hundreds or thousands a month at these places and you just pay your minimum balance while the principle balance continues to go up, then you have a problem. However, the AA will be due to you constantly charging towards your max while paying your min. I can tell you for a fact that happened because it happened to me many years ago. It wasn't at discount stores a Micky Ds though, it was for motorycycle parts.

[Networth]

So true, most wealthy individuals did not become that way by shopping only at "high end" stores. My grandfather just bought a house on Nantucket, he than proceeded to furnish the entire pool house, patio, and garage buy purchasing things online from none other than Walmart(bikes, grill, shelves etc) while paying with a Centurion. Amex does not assume because you shop at Walmart here and there for some cheaper stuff that your going poor. On a side note you don't have to be the "Christian right" to shop at a discount store, you know what they say about assumptions....