Getting a credit card is one of the great things that can happen to you, and if you get one from American Express, things can get even better. There are services that different financial companies have to benefit the consumer, and AMEX points are one of them.
The American Express Membership Rewards is a way to reward people who have made purchases with the company’s credit card. It is one of the top services in the US and it is easy to earn points, however, there is a multitude of options that you can redeem and vary its value.
That is why we are going to show the amount of money that AMEX points are worth and the redeeming options that are at your disposal.
What are AMEX points and how can you earn them?
Like we said above, these are rewards that are given to those who purchase something with an American Express card. These points can be accumulated, so you do not have to spend them right away. Although, if you want to know how much you can obtain, it will also depend on the card’s level.
In other words, AMEX offers a wide variety of credit cards made for personal use, small businesses, or corporates. Not all of them apply for the Membership Rewards, so if you are going to open an account and also want to earn AMEX points, first decide on the card that satisfies your necessities.
For example, if you decide to get an American Express Gold Card (personal), you can spend 4,000 dollars within the first 6 months from opening an account and get 60,000 AMEX points as a reward.
Methods to redeem them and their estimated value
Now that you know how these points work, let us introduce you to the redeeming processes. Some of these can cost more than others, and the AMEX points can vary in cents:
- Cover card charges. You can receive statement credits through this method; the point exchange has a value of 0.6 cents per point. But there is a drawback because if you want to use this option, the minimum points you have to redeem are 1,000.
- Checkout. American Express has a selection of merchants that allow these rewards to checkout online, for example, PayPal, Best Buy, and Amazon are among those online stores. Depending on where you are going to use this method, AMEX points can vary from 0.5 to 1 cent.
- Gift card. These can be obtained from different stores; some of them are Staples, Home Depot, and Wayfair. It’s the same as a checkout; the estimated value goes from 0.5 to 1 cent.
- Travel. American Express not only has business with finances, but it also opens the doors to traveling, and you can book or upgrade a flight on the AMEX travel portal. If you purchase a flight, you can redeem AMEX points for 1 cent, but if you book a hotel, for example, it can go from 0.5 to 0.7 cents.
- Transferring points. Another option related to travel is to transfer points to another loyalty program, like Hawaiian Airlines or Marriot Bonvoy. The process is at a 1:1 ratio, but search information of the program you are transferring to, as that ratio can vary slightly.
- Shopping. On their website, you can also spend points to buy various products. There is an extensive catalog, and the estimated value of points is 0.5 cents.
Easy AMEX points calculator
If it is hard for you to estimate how much you are going to spend in dollars, then we have a solution for you. American Express offers a calculator that shows the different methods we have just talked about, and also the monetary value.
To do this, you just have to select the type of credit card you own, have already an account, and choose the amount of AMEX points. Instantly, the website will show the results on different options, for example, if you choose to checkout, you will see all the merchants available.
If you want to use this calculator, you just have to click here. Remember that you do not have to spend your points immediately, you can accumulate them.
For years I have studied the irs regulations regarding forms and taxes. All the information in this blog is sourced from the Internal Revenue Service (Irs) of the United States government .
Salesforce Certified SALES & SERVICE Cloud Consultant in february 2020, Salesforce Certified Administrator (ADM-201) and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.