How To Use Amex Points To Pay Your Bills

Paying bills can be a drag. Between rent utilities subscriptions, and more, those monthly payments really add up. What if you could use your Amex points to cover some of those expenses? Well, with Amex’s Pay With Points program, you can!

In this article, I’ll explain how the Pay With Points feature works. I’ll go over what charges are eligible, how to redeem your points, and any limitations you need to know about. After reading this, you’ll be ready to start slashing your bills with your Amex points. Let’s get started!

Overview Of Pay With Points

The Pay With Points program allows you to use your Membership Rewards points to cover eligible charges on your Amex card statement Essentially, you can redeem points to pay yourself back for purchases you’ve already made

This feature provides a great way to maximize the value of your Amex points. Rather than transferring them to airline partners for potentially less than 1 cent per point in value you can redeem your points at a value of 1 cent each to erase charges.

Pay With Points can be used to cover all or just a portion of an eligible charge. You can pay for the whole thing with points, or only part of it to conserve your points balance. Either way, it’s a simple process that can save you cash.

Eligible Charges For Pay With Points

Not all charges on your Amex statement can be covered with Pay With Points. Amex has rules about what purchases are eligible. Here’s what you need to know:

• The charge must appear on your current card statement to be eligible. Pay With Points cannot be used to cover future purchases.

• All charges made directly with the Amex card are eligible. This includes retail purchases, dining, travel, etc.

• Charges made through third parties like PayPal are not eligible. The purchase must show up as a direct Amex transaction.

• No fees, interest charges, or cash advances can be covered with Pay With Points. Only tangible goods and services qualify.

• The charge cannot already be covered by a payment or credit. Pay With Points is meant to pay original charges only.

As long as the charge shows up on your current statement as a direct Amex transaction for goods or services, it should be eligible for Pay With Points. Just avoid any third-party transactions, fees, or financial charges.

How To Redeem Points For Charges

Redeeming your Amex points through Pay With Points is simple. Just log into your Amex account online or via the app and follow these steps:

1. View your current online statement to identify eligible charges. Look for direct Amex transactions for goods and services only.

2. Select the charge or charges you wish to cover by clicking the checkbox. A confirmation checkmark will appear.

3. Click the “Redeem Now” button at the bottom once you’ve selected all your charges.

4. Confirm the point redemption and your work is done! The credit should appear on your statement within 48 hours.

The process is quick and painless. Within two days, you’ll see your statement balance drop as the points are redeemed for credits. The value comes out of your Membership Rewards balance instantly.

I like to log in and redeem my points through Pay With Points as soon as my statement closes each month. That way, I can reduce my balance due before making a payment. It takes less than 5 minutes!

Maximum Points You Can Redeem Per Year

While Pay With Points is easy to use, there are some limitations on how many points you can redeem each year:

• With the Gold, Green, and Platinum cards, you can redeem up to 100,000 points per calendar year via Pay With Points.

• With the Blue Cash and Blue Business Plus cards, the maximum is 50,000 points per year.

• There is no limit for the Business Platinum Card.

So depending on what Amex card you have, your ability to erase charges with points may be capped annually. Just something to be aware of if you have one of the cards with a threshold.

Still, 50,000 or 100,000 points can cover a ton of purchases! That’s up to $1,000 or $2,000 per year in charges you can wipe out. Maximize Pay With Points as best as you can under the limit.

The Value Of Erasing Charges With Points

Using Membership Rewards points via Pay With Points allows you to redeem them at an even 1 cent per point. That makes it one of the best redemption options available.

Let’s compare the potential value to some alternatives:

• Transferring to airline partners gets you ~0.7 to 1 cent per point in value for economy and 1.5 cents for business/first class. Not as good for everyday spending.

• Using points for gift cards or Amazon purchases gives you up to 0.8 cents in value. Pay With Points does better.

• Booking travel through Amex’s portal gets up to 1 cent per point usually. The value is similar.

• Getting statement credits for travel offers just 0.5 to 0.7 cents per point. Pay With Points gives you more.

As you can see, redeeming points to cover charges is one of the top options, beaten only by using them for fancy flight awards. You get a solid 1 cent per point return to erase purchases.

Given how easy and flexible Pay With Points is, I recommend maxing it out each year before transferring points anywhere. The value is hard to beat!

Pay With Points Strategy Tips

To make the most of the Pay With Points program, here are some tips on the best strategies to use:

• Pick big purchases – Use your points for large charges to maximize the value. Using 2,000 points to cover a $20 purchase isn’t efficient. Save your redemptions for $100+ charges.

• Erase non-category spending – Don’t use points to erase bonus category purchases you’d earn extra points on anyway. Cover your non-category bills instead.

• Pay your balance down – Redeem points as soon as your statement closes to lower your balance right away before making a payment.

• Combine with a credit – If you have returns or credits on your statement, use Pay With Points to finish paying off the balance.

• Don’t over-redeem – Be mindful of the annual redemption limits for your card so you don’t lose out on any leftover points.

• Use it or lose it – Points don’t last forever, so don’t let them go to waste. Put your Membership Rewards balance to good use.

Following strategies like these will help you optimize this great redemption program from Amex. Getting 1 cent or more per point in value is a big win.

Common Questions About Pay With Points

If you’re new to redeeming your Amex points to cover charges, you may still have some questions. Here are answers to a few common ones:

Will my credit limit or minimum payment be affected?

No, redeeming points does not impact your credit limit or minimum payment due on your statement. Think of it as just getting a credit.

When will the credit from my points post to my account?

In most cases, the credit will appear within 48 hours or less after you redeem points. You should see the updated balance right away.

Can I use Pay With Points for past statements?

Unfortunately, no. You can only cover charges from your most current open statement period. Older charges are not eligible.

What if I return an item or get a refund?

If you redeem points to cover a charge that later gets refunded, the points will be redeposited back into your balance automatically.

Does this work for business cards?

Yes, Pay With Points can also be used with eligible American Express business cards the same way.

That covers some common questions on the ins and outs of the program. It’s pretty straightforward once you get the hang of it.

Use Amex Points For Big Rewards

Membership Rewards points are hugely valuable – don’t let yours go to waste! Using the Pay With Points feature, you can erase charges from your statement at an awesome 1 cent per point redemption rate.

Cover big expenses you already have to pay for anyway to maximize your points. Keep it simple and get solid value. Pay With Points gives you an easy way to slash bills and get closer to redeeming your Amex points for incredible rewards!