Beginning September 2019, it may be time to start looking at new points programs. Here’s why.

(Courtesy of PEYD) Historically, the high value of Amex Membership Rewards points (MR) was based on their ability to be transferable into a variety of frequent flyer programs and MR points could be transferred to an account in any person’s name, not just the credit card holder.

Some time ago, Amex changed the process for transferring MR points and only allowed transfers into frequent flyer accounts where the member was an authorized user on the Amex credit card account. Amex will be adding a new restriction very soon, which will make it more difficult to transfer the points to someone else’s frequent flyer account, which will therefore potentially impact their overall value.

Effective September 1, card-members will be required to add the recipient of their points as an additional cardmember on their credit card account and then will need to wait 90 days before card-members can transfer MR points to the new frequent flyer accounts.

Here’s how Amex described the change:

We are changing the Membership Rewards Terms and Conditions to provide that an Additional Card must be issued to an Additional Card Member at least 90 days prior to linking your Membership Rewards program account to that Additional Card Member’s frequent customer program account.

Additionally, effective immediately, employees on business credit card accounts cannot have their own MR account. All points will be pooled into one MR account of the primary card holder. If you currently have a separate MR account for your employee card, these will be discontinued on September 28.

What does this mean for me?

The changes that will take effect September 1, and those that have already been implemented will continue to reduce the overall value of Amex points. These changes will make it much more difficult to use the points for friends and family to book travel for as well. Individuals and businesses who have been redeeming their Amex points frequently should be aware of these upcoming changes and plan accordingly by evaluating different rewards programs based on their business and individual needs.

Additionally PEYD has been working tirelessly to stay abreast of the new changes and has put together a list of options and a plan of action to help businesses with significant spending and credit lines prepare accordingly.

Contact us ASAP at 646- 801-PEYD (7393) or at www.getpeyd.com  to redeem your current points and discuss our recommendations for your daily credit card spending.