Credit Cards

American Express Cash Back redemption policy

  • Last Updated:
  • Sep 11th, 2021 7:16 pm
Tags:
None
[OP]
Newbie
Dec 14, 2020
34 posts
20 upvotes

American Express Cash Back redemption policy

Maybe this is public knowledge. I just fund out about it and wanted to share it in case it is useful for somebody.
A customer care agent just confirmed on the chat that all cash back accumulated on the account is lost when the account is cancelled. And the cash back is only redeemed in September.

I applied for the card a few months ago and paid the annual fee in July. So, for me, this means that if I keep using the card all year and gain cash back balance, I would be forced to pay the annual fee again in July or else I would lose all the rewards at cancellation.

Now that I know, I will simply cancel the card after September's statement and be done with it. But it is a shame to use a $99 annual fee card for only 2 months.

But there is another reason for me posting this here. The agent mentioned an alternative. He said that I could keep using the card and then in May 2022, for example, downgrade to the Simplycashback card, that has no annual fee. He said that this way I would keep all the rewards earned until then and be able to redeem them in September without having to pay a new annual fee. So, my question is, has anybody had any experience doing this before? I wouldn't want to accumulate $300 in rewards and then next year find out that the agent was lying or exaggerating and that the process is not as easy as he made it out to be.
4 replies
Member
Aug 9, 2020
260 posts
155 upvotes
apertotes wrote: Maybe this is public knowledge. I just fund out about it and wanted to share it in case it is useful for somebody.
A customer care agent just confirmed on the chat that all cash back accumulated on the account is lost when the account is cancelled. And the cash back is only redeemed in September.

I applied for the card a few months ago and paid the annual fee in July. So, for me, this means that if I keep using the card all year and gain cash back balance, I would be forced to pay the annual fee again in July or else I would lose all the rewards at cancellation.

Now that I know, I will simply cancel the card after September's statement and be done with it. But it is a shame to use a $99 annual fee card for only 2 months.

But there is another reason for me posting this here. The agent mentioned an alternative. He said that I could keep using the card and then in May 2022, for example, downgrade to the Simplycashback card, that has no annual fee. He said that this way I would keep all the rewards earned until then and be able to redeem them in September without having to pay a new annual fee. So, my question is, has anybody had any experience doing this before? I wouldn't want to accumulate $300 in rewards and then next year find out that the agent was lying or exaggerating and that the process is not as easy as he made it out to be.
Seems reasonable that the cashback would be received given the switch but don't have experience here.
Deal Fanatic
Feb 4, 2015
7023 posts
3258 upvotes
Canada, Eh!!
Read this thread:

amex-simplycash-preferred-i-card-10-cas ... v-2400284/

Basically they may or may not let you downgrade. If not then just apply for no fee Amex and then call in to transfer.
.......
July 13, 2017 to October 25, 2018: BOC raised rates 5 times and MCAP raised its prime rate next day each time.

2020: BOC dropped rates 3 times and MCAP waited and waited to drop its prime rate to include all 3 drops.
Deal Guru
User avatar
Jan 9, 2011
12161 posts
15230 upvotes
Vancouver
Forfeiture of the cash back when canceling your card before the payout date is spelled out in the T&Cs. This is why it is best to apply for the card right after September instead of just before, if you intend to cancel. Amex generally does not allow downgrades of products unless a specific offer has been made to you. I wouldn't count what the agent said as a formal offer. Proceed with caution.

Top