Amex Membership Rewards
Many points and travel enthusiasts routinely redeem for what they perceive as outsized travel value in cents per point (cpp). I know this, because they tell me, you, and everybody – routinely, when none of us asked. But I get it, sort of. When I make what I consider to be a high-value redemption aligned with our goals, I’m looking for a Top Gun high five, too. My wife’s usually around in those instances, usually sporting a predictable eye roll. So naturally, many focus on the eye-popping Amex Membership Rewards redemptions involving airline partner transfers or via direct Business Platinum bookings, invariably in premium classes. But other options are out there, and they can bring solid value for certain individuals. Today, I’m talking about my favorite. But first, why have we made this change?
Why We’ve Changed our Amex Membership Rewards Redemptions
We have many reasons for why we’re opting for different Amex Membership Rewards options. It hasn’t been that difficult to consider them, primarily because we’ve never redeemed Membership Rewards for traditional travel. We’ve historically cashed out Membership Rewards via the Amex Schwab Platinum’s Invest with Rewards benefit. But things have changed there. That perk has substantially devalued, with us facing substantially less “reward” for our preferred redemption. Semi-related, we’re not earning MR’s like we previously were, and other premium card benefits have gone stale. We’re no longer interested in paying our Schwab Platinum annual fees – or accepting retention offers – and have started closing ours.
Also, we’ve had zero use for Amex’s transfer partners, as we have plenty of currency in the airline loyalty programs we routinely use. Premium bookings via the Business Platinum isn’t my thing, either. And my wife and I easily found another solid use for Membership Rewards points, anyway.
Amex Membership Rewards Redemption Options
I’m still cashing out at 1.1 cents per point as a Schwab Platinum cardholder, but we’re currently redeeming my wife’s points in other ways. Amex provides a handy page summarizing the overall transfer rates for a variety of redemption options listed below.
- Use Pay with Points at Checkout
- Redeem for Gift Cards
- Use Points for Statement Credit
- Book Travel at AmexTravel.com
- Transfer Points
Of course, the last two are where travel enthusiasts primarily focus. My wife and I considered the first three for her MR redemptions and quickly came upon our preference – gift cards.
Paying with points at checkout – at a significant level, at least – doesn’t generally make sense for us. Amex MR cardholders can redeem points at 0.7 cpp at retailers like Amazon and Best Buy. Of course, it’s worth saving a small handful of points to leverage Amex pay with points promos at Amazon. Using points for statement credits to essentially erase charges brings even less value. MR cardholders can cover card charges or use points for a statement credit for a measly 0.6 cpp value.
What We Like
On the flip side, redeeming Membership Rewards points for gift cards has been a solid move for us. Amex offers a variety of third-party gift cards, including air and lodging, car and rail, dining, and retail. Cardholders can also redeem for cash equivalents via Amex gift cards, but I highly discourage that option, which only comes with a 0.5 cpp value. Let’s look closer at those other options.
We found the best options for our family in the retail section. Options range from redemptions reflecting 0.7 to 1 cpp. My wife and I easily identified several 1 cpp gift card options where we normally shop for clothing, shoes, home improvement, and housewares needs.
Not For Us, Maybe for Others
A few other options stand out. Anyone planning Fairmont Hotels stays can pick up gift cards at a 1 cpp valuation. Some may even squint to make sense of Mandarin Oriental gift cards at 0.85 cpp – clearly a step below but maybe logical in unique situations. Some may find a Soothe gift card at 1 cpp a nice redemption for their wellness needs. Shout-out to the Total Wine & More gift cards at 0.85 cpp; that’s ho-hum, but I can think of a few hobbyists who may enjoy the novel concept of subsidized booze.
Conclusion
Some may consider this my latest instance of turd polishing. That may be true for your situation, but not necessarily for mine or certain others’. My wife and I can realize immediate, undeniable, unsexy value from Membership Rewards points while we phase out our portfolio of high-annual-fee Amex cards.
But I also realize that we have myriad options for obtaining discounted gift cards elsewhere. Given those alternatives, I know we can’t necessarily consider every Amex gift card redemption we make at an exact value of 1 cpp. Bigger picture, though, I won’t quibble with reliable, useful redemptions while avoiding annual fees.
When have you redeemed Amex Membership Rewards points in a less-than-obvious manner and why?
