American Express only allows cardholders to transfer Membership Rewards to partner accounts of authorized users, and those authorized users need to have been added at least 90 days ago. What does this mean?
American Express pools all your Membership Rewards into a single account. Still, you can’t transfer (or pool) Membership Rewards between people, even with your spouse, family member, or authorized user(s). This rule is more restrictive than those of Capital One, Chase and Citi, which all let you send points between accounts.
You can currently transfer Membership Rewards points to the loyalty accounts of people who are authorized users on one of your American Express cards that earn Membership Rewards. For example, I can transfer my wife Sharon’s Membership Rewards to my Delta SkyMiles account. In the past, I also added my dad as an authorized user so I could transfer Membership Rewards to his ANA Mileage Club account—which helped him book a memorable trip to Bali and Thailand. Back then, it was possible to add an authorized user and transfer points almost immediately. But that’s no longer the case due to the 90-day hold period now in effect.
There’s no doubt AMEX’s RAT team suggested this change to keep people from selling points. All you needed to do was add someone as an authorized user. What’s to keep those with little to no moral compass from sending points to whomever they want if someone is willing to pay them for the points? In this case, a 90-day hold period seems reasonable.
To ensure that you can transfer Membership Rewards to someone in the future, it’s a good idea to add them as an authorized user on your American Express card that earns Membership Rewards. Which American Express card is the best choice for this purpose?
These are the things I take into consideration when deciding which AMEX card I want to add an authorized user:
Cost
Depending on which card you choose, you can pay anywhere from $350 to add an additional user to the Business Platinum card, $195 for additional users on a Personal Platinum card, or no charge to add users to any number of other American Express cards.
Now, there may be a good reason to add someone as an authorized user to an American Express Platinum personal or business card. Most importantly, authorized users get some of the same perks as the primary cardholder, like lounge access to Delta Sky Clubs and Centurion Lounges.
That’s not the basis of this post, so I’m going to say that when it comes to adding an authorized user only to allow point transfers, these cards aren’t the best choices.
Or are they?
Credit Report Consequences
One of the biggest drawbacks of adding authorized users to credit cards is that if it’s a personal account, it will show up on your credit report even if it’s not your account. This can be a good thing if you’re looking to build credit, but if you’re trying to stay under Chase’s 5/24 rule, this is a big problem. You can call the bank and explain how you’re just an authorized user and not responsible for the charges, but that’s one more step I’d prefer to avoid.
Considering this, the best card to add someone to for allowing transfers of Membership Rewards to their accounts would be an AMEX business card. The same ones I just said weren’t a good idea. Here’s why.
American Express Business Charge Cards
If you have any of the American Express Business charge cards (Platinum, Gold, or Green), you can add additional users to your account. For example, say you have a Business Gold Card. You can add an additional five Gold cards to your account for $95, OR you can provide an Employee Business Expense card to an authorized user for FREE!
In fact, all AMEX business charge cardholders, no matter the card type, can add Employee Business Expense cards for no charge.
If the only reason you’re adding an additional cardholder is so you can transfer points to their partner accounts, this is the best option. There’s no cost, and the cards don’t show up on the authorized user’s credit report.
American Express Blue Business Plus Card
The Blue Business Plus card has no annual fee and earns 2x points on all purchases up to $50,000 per year. It also allows authorized users to be added for free.
American Express Everyday Card
What if you don’t have an American Express business card?
Until recently, the best personal option was one of the American Express Everyday cards. They had no annual fee, earned Membership Rewards, and allowed you to add authorized users for free. In fact, this is one of the few cards where I added myself to Sharon’s account so I could transfer her points to my frequent flyer accounts when needed.
However, these cards are no longer available for new applications, so if you already have one, great—hang onto it. But if you don’t, you’ll need to consider a different option.
The Next-Best Personal Card Option
If you’re looking for a personal AMEX card to add an authorized user to—strictly for the ability to transfer Membership Rewards—the next best move is to add a no-fee additional card to one of your existing Membership Rewards-earning accounts.
For example, if you have a personal AMEX Green or Gold card, you can add a basic authorized user card at no extra cost. AMEX Platinum cardholders also have the option to add a Companion Platinum card with no fee. These additional cards don’t include premium perks like lounge access, but if your only goal is to enable point transfers, they’ll do the trick.
Final Thoughts
Planning ahead is key when it comes to transferring American Express Membership Rewards to someone else’s loyalty account. Because of the 90-day rule, you can’t just add an authorized user and transfer points immediately like you could in the past.
If you think you may want to send points to a partner, family member, or travel buddy at some point, add them as an authorized user now—even if you don’t need to transfer points today. Choose a no-fee option, ideally a business charge card or a basic additional user card on a personal account, to avoid extra costs or unwanted hits to their credit report.
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