Amex Rewards vs Chase UR

Discussion in 'American Express | Membership Rewards' started by Mrlasssen, May 19, 2013.  |  Print Topic

  1. Mrlasssen

    Mrlasssen Silver Member

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    Why does Amex collect a Federal Excise tax for transfers of points into a US airline but Chase UR points do not collect the same tax?
     
  2. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    Because they can.

    Technically it is a tax offset, not a tax, so it is the prerogative of the company as to whether they charge it or not.
     
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  3. Mrlasssen

    Mrlasssen Silver Member

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    So then does Chase pay the fee for us?
     
  4. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    In both cases the banks pay the federal excise tax. In the case of Chase they don't attempt to recoup anything from you for it.

    This is how AmEx describes it in their T&Cs:
     
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  5. Mrlasssen

    Mrlasssen Silver Member

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    Thank you for the explanation, kind of reminds me of the time I questioned the tax's on my phone bill. The rep could not tell why but did not even know what the charges were for. Thanks again.
     
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