American Express Changes Authorized User Rules, Will No Longer Award Points on Late Payments

Jun 5, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Loyalty programs are a moving target, with benefits, transfer partners, terms and conditions frequently changing. American Express recently expanded the bonus categories on the American Express® Gold Card to earn 4x points at restaurants around the world, and now Travelwithgrant is reporting a number of broader changes to the Amex Membership Rewards program.

The first and most important change has to do with transferring points to an authorized user. Amex doesn’t allow you to pool Membership Rewards points, but you can transfer your points to a frequent flyer account belonging to an authorized user on your card. However, beginning Sept. 1, you’ll need to wait 90 days after adding an authorized user before you can transfer points to their accounts.

Business authorized user cards (referred to as employee cards) also saw a negative change. Effective immediately, business employee cards cannot have their own Membership Rewards account. All points must be pooled with the primary card holder. If you currently have a separate Membership Rewards account for your employee card, these will be discontinued on Sept. 28.

Another change to how Amex awards Membership Rewards points makes it a lot less enticing to carry a balance on your credit card. Starting Sept. 1, if you don’t pay your bill by the payment due date you’ll forfeit any Membership Rewards points earned during that period. Note that on some Amex credit cards the “please pay by” date is not the same as your payment due date.

I find this change to be the most interesting by far. The cardinal rule of travel rewards is to never carry a balance on your credit cards, as the sky-high interest rates will quickly outpace the value of any rewards you earn. Not everybody reads The Points Guy, though, and 2018 ended with American credit card debt at an all time high of $870 billion.

For more information on Amex Membership Rewards please see:

American Express® Gold Card

With some great bonus categories, the American Express Gold Card has a lot going for it. The card offers 4x points at restaurants worldwide, at US supermarkets (up to $25,000; then 1x), and 3x points on flights booked directly with airlines or through amextravel.com.

Apply Now
More Things to Know
  • Earn 35,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 3 months.
  • Earn 4X Membership Rewards® points when you dine at restaurants worldwide. Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.
  • $100 Airline Fee Credit: up to $100 in statement credits per calendar year for incidental fees at one selected qualifying airline.
  • Choose to carry a balance with interest on eligible charges of $100 or more.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
See Rates & Fees
Annual Fee
$250
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.