Amex quietly closes loophole for valuable perk

The world of credit cards is often a complex game that captivates millions globally. Recently, a move by American Express has stirred discontent among its cardholders, many of whom feel blindsided by the change.

Without much fanfare, American Express has put an end to a popular method that allowed cardholders to maximize one of its premium card benefits. This decision has sparked considerable backlash among the card’s loyal users.

This week, online forums have been buzzing with complaints as American Express ceased the practice of allowing its annual airline incidental credit to be utilized via deposits into United Airlines’ TravelBank.

This change directly impacts a favored perk of the American Express Platinum Card, which provides cardholders with up to $200 in annual statement credits specifically for airline ‘incidental’ charges.

These credits are typically meant to cover expenses like checked baggage fees, seat selection charges, in-flight snacks and beverages, lounge access passes, and other similar add-ons.

It’s crucial to note that these benefits are explicitly designed not to cover the cost of airfare itself, cabin upgrades, or substantial ticket purchases.

Instead, qualifying transactions must be coded by the airline as an ‘incidental’ charge in order for the reimbursement to be automatically triggered.

But in recent years, a workaround spread widely among frequent travelers. 

American Express has reportedly quietly shut down a popular workaround tied to one of its premium card perks – sparking backlash among loyal cardholders

Cardholders who selected United Airlines as their designated carrier discovered they could deposit up to $200 into United’s TravelBank – a digital wallet that stores funds for future flight purchases.

Because those deposits were coded similarly to incidental charges, they would trigger the statement credit.

In effect, this allowed customers to convert the more restrictive incidental credit into a flexible $200 flight credit that could be used toward base airfare at a later date.

‘Some clever folks found that you could add money to United’s TravelBank and it would be triggered as an incidental credit, which is essentially depositing funds to be used at a later date,’ one Redditor wrote. 

‘So, each year, you select United, purchase $200, and get essentially $200 flight credit, which is far more flexible than the incidental credit.’

That workaround now appears to have been closed.

On discovering the change, many Redditors voiced frustration, arguing that the card had ‘lost a good chunk of value.’

‘Yeah, card basically lost a good chunk of value. Pretty big. Will reevaluate and change cards. No biggie,’ one disappointed user wrote.

Online forums erupted with complaints that the company has stopped allowing its airline incidental credit to be triggered through deposits into United Airlines' TravelBank (stock image)

Online forums erupted with complaints that the company has stopped allowing its airline incidental credit to be triggered through deposits into United Airlines’ TravelBank (stock image)

Cardholders who selected United as their designated carrier discovered they could deposit up to $200 into United's TravelBank - a digital wallet that stores funds for future purchases

Cardholders who selected United as their designated carrier discovered they could deposit up to $200 into United’s TravelBank – a digital wallet that stores funds for future purchases

Others used the moment to reassess the broader package of statement credits attached to American Express’ premium products, some of which carry annual fees approaching $900.

One critical commenter listed several benefits they considered underwhelming.

Their gripes included credits for Equinox memberships, Saks purchases, Uber One subscriptions, CLEAR airport security memberships, dining reservations through Resy, and airline incidentals.

‘So here is a list of all the useless credits Amex the ‘premium’ credit card offers with their hefty $900 annual fee,’ the commenter wrote, before detailing each perk and questioning its real-world value.

Some users suggested the loophole’s popularity may have contributed to its demise.

‘Honestly, stuff like this gets ruined because people just don’t know how to play the game,’ one wrote. ‘Instead of figuring it out quietly, they go and call Amex asking how to ‘redeem’ the $200 credit.’

Another added that they had recently attempted a TravelBank deposit and did not receive a credit.

The change highlights the ongoing tension between credit card issuers and savvy consumers who seek to maximize rewards

The change highlights the ongoing tension between credit card issuers and savvy consumers who seek to maximize rewards 

While issuers design perks with specific limitations, online forums frequently surface strategies to stretch those benefits further - until companies adjust the rules

While issuers design perks with specific limitations, online forums frequently surface strategies to stretch those benefits further – until companies adjust the rules 

A spokesperson from American Express told the Daily Mail that ‘statement credits that were previously applied to United TravelBank purchases were issued in error.’

They added: ‘The American Express Airline Fee Credit allows eligible Card Members to earn up to $200 annually in statement credits for eligible incidental fees charged by their one selected domestic airline. 

‘United TravelBank purchases are considered gift cards. Under the benefit’s terms, gift cards are not considered incidental fees, so they are not eligible for this credit.’

The change highlights the ongoing tension between credit card issuers and savvy consumers who seek to maximize rewards. 

While issuers design perks with specific limitations, online forums frequently surface strategies to stretch those benefits further – until companies adjust the rules.

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