When I’m considering signing up for a new card, there are several things I think about. How big is the signup bonus? Will I keep this card for the long term? How can I meet the minimum spending requirement? If I’m considering an AMEX card, I must also worry about the Rewards Abuse Team (affectionately called RAT).
The RAT’s job is to find any reason to deny a signup bonus to any cardholder they feel is trying to game the system and sign up for cards just for the bonuses. Why AMEX thinks this practice is a bad idea would make you question why they offer huge bonuses in the first place if it’s bad for business, but better to blame the customers, right?
A big no-no for AMEX is buying gift cards to meet minimum spending requirements. The presence of a single gift card purchase has been the reason for the RAT to deny a bonus, even if you’d otherwise meet the requirement without it.
Unlike the other banks, AMEX knows about everything you purchase because it is both the bank and the processor for credit card transactions. So when I’m trying to meet the minimum spend on an AMEX card, I watch every purchase, making sure there’s nothing that raises a warning flag. I’m not buying any gift cards, not even a $50 Starbucks card at a drugstore to give as a farewell gift to a co-worker.
This reflects my cautious approach to earning miles and points. While I aim to accumulate enough points for us to travel comfortably and in style, I prefer to fly under the radar without drawing attention. Despite my efforts to play it safe, my wife, Sharon, has still ended up in AMEX Pop-Up Jail.
Am I being overly cautious or just careful?? What’s your experience? How much has the AMEX RAT let you get away with before they slam the door in your face?
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