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!

Use Amex Points To Bill Pay

Cards that offer a Pay with Points bonus

As mentioned, there are three Amex cards for small businesses that offer a rebate when you pay with points (terms apply). Here are their current welcome offers and other details:

  • The Business Platinum Card from American Express: Earn 150,000 points after you spend $20,000 on eligible purchases with your card within the first three months of card membership.
  • American Express® Business Gold Card: Earn 70,000 bonus points after you spend $10,000 on eligible purchases in the first three months of card membership.
  • Centurion Business Card from American Express: Applications by invitation only.

The information for the Centurion Business card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Details Business Centurion Business Platinum Business Gold
Pay with Points rebate 50%. 35%. 25%.
Value of each redeemed point 2 cents. 1.54 cents. 1.33 cents.
Eligible flights All flights. First- and business-class flights, and economy flights on your selected airline. First- and business-class flights, and economy flights on your selected airline.
Maximum number of bonus points N/A 1 million points per calendar year. 250,000 points per calendar year.

Amex Pay with Points value

If you have any Membership Rewards points-earning cards, you can redeem your points at a fixed rate of 0.6 cents each to wipe charges off your statement. However, TPG values Membership Rewards points at 2 cents each, so youd be sacrificing a lot of value if you go this route, making this one of the worst possible ways to redeem your Membership Rewards points.

Booking through Amex Travel gets you a slightly better value, as your points will be worth 1 cent each toward the cost of airfare, or 0.7-0.85 cents each for hotels, car rentals, cruises and more. If your goal is a truly free vacation, using points for car rentals or cruises can help keep your out-of-pocket costs down, but this is still far from an ideal redemption option.

However, you can generally get the highest Amex Pay with Points value through flight redemptions. There are three Amex cards for small businesses that offer attractive rebates of 25%-50% when using Pay with Points for flights, making this a solid redemption choice. This can be an easy way to lock in a minimum redemption value of more than 1 cent per point and is also a useful option when you need “last-seat availability”, i.e. you need to be on a specific flight even if it doesnt have award space via a frequent flyer program.

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How To Redeem Amex Points For MAX VALUE (Beginner’s Guide)

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