How Does Amex See Gift Card Purchases

Discussion in 'American Express | Membership Rewards' started by IPBrian, Aug 16, 2011.  |  Print Topic

  1. IPBrian

    IPBrian Silver Member

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    Let's say I was going to my local mall and purchasing several hundred dollars in visa gift cards. How does Amex categorize these? Do they count toward minimum spend? Do they get coded as a cash advance? I wouldn't want to get charged a cash advance fee for buying gift cards.
     
  2. Andyandy
    Original Member

    Andyandy Gold Member

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    If you make the purchase at a store, they'll have no idea what you are buying. But seeing as how they code purchases of their own gift cards as purchases, not cash advances, I'd say you'd be safe even if they knew what you purchased. Many folks here have used GCs to meet spend.
     
  3. IPBrian

    IPBrian Silver Member

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    Thanks Andy, I didn't think it would be too much trouble, but wasn't sure. Didn't want to get hit with a weird fee.
     
  4. jaw_24
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    jaw_24 Silver Member

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    Look for places where you can earn extra incentives for spend on gift cards. I have a few other comments about this on other topics if you need ideas.
     
  5. Scottrick
    Original Member

    Scottrick Gold Member

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    It might be a good idea to buy gift cards at the grocery store if you can earn triple points.
     
  6. Million Mile Secrets

    Million Mile Secrets Silver Member

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    Citi Amex & Visa cards will charge a cash advance fee for purchasing gift cards from, say, American Express directly.
    Purchases made in a mall or drug store most likely get tagged as originating from a mall or drug store and you shouldn't get charged a cash advance fee.

    American Express is notorious for instituting Financial Reviews (where they suspend your account and ask you for your tax returns) if there are lots of American Express or other financial institution gift card purchases.

    But you should be fine with purchasing gift cards from the mall, since those transactions will appear to be regular retail transactions.
     

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