American Express Reverses Cash Advance Definition Changes
Update (Oct. 5, 2021) – American Express has revered the changes it made early this year for its the definition of “Cash Advance” in the Cardmember Agreement. As of October 1, 2021, “precious metal coins or bullion and digital precious metals products” are no longer part of the definition of cash advance.
That means that those purchases will be eligible to earn points, miles or cash back. This is important for those who want to use American Express credit cards for Mint coin purchases. I often write about these Mint coin deals which can be quite profitable through reselling but also for the rewards and spending for welcome bonuses.
The new Amex “Cash Advance” definition, which was first reported by Travel with Grant, reads as follows:
A cash advance is a charge to get cash or cash equivalents, including travelers cheques, gift cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, and similar offline and online betting transactions.
American Express Adds New Categories that Code as Cash Advance
Update (Oct. 17, 2020) – This section will get another update soon.
Effective January 15, 2021, we are updating this sub-section to add precious metal coins and bullion to the definition of Cash Advance in your Cardmember Agreement.
American Express has sent out letters notifying cardholders that starting in November the definition of cash advance is changing. Two new categories are added, although it’s not exactly clear what they cover. Here’s the notice that has been sent out to American Express cardholders about the change:
Effective November 1, 2020: “A cash advance is a charge to get cash or cash equivalents, including travelers cheques, gift cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, similar offline and online betting transactions, and digital precious metals products.”
Digital currency and digital precious metals products are the new additions to the terms for cash advance charges. These probably have to do with purchases of cryptocurrencies and blockchain currencies, although I’m not sure. If anyone has any better idea, please let me know in the comments. Some of these charges are probably already coding as cash advance but now it will be listed in the terms.
HT: true_tedi
