What does Amex consider eligible purchases?

Decoding American Express’s “Eligible Purchases”: What Counts and What Doesn’t

American Express (Amex) offers a range of credit cards known for their rewards programs and exclusive benefits. However, understanding what constitutes an “eligible purchase” is crucial to maximizing those rewards. While the basic definition seems straightforward – transactions for goods and services – the nuances require closer examination.

Amex explicitly states that eligible purchases are transactions where you receive goods or services. This is a broad category encompassing everything from groceries and gas to flights and hotel stays, online subscriptions, and even professional services like haircuts or legal consultations. Essentially, if you’re paying for something tangible or intangible that adds value to you, it’s likely an eligible purchase.

However, the crucial exclusion is equally important: refunds and credits are not considered eligible purchases. This means that if you return an item and receive a refund, that refund will not count toward your spending requirements for bonuses, rewards points accrual, or other promotional offers. Similarly, any credit applied to your account, whether it’s a statement credit or a merchant credit, is also excluded.

This seemingly simple distinction can have a significant impact on your rewards earning. Consider the following scenarios:

• Scenario 1: You purchase a $100 item and later return it, receiving a full refund. Only the initial $100 purchase would be considered an eligible purchase; the refund itself is not.

• Scenario 2: You purchase a $500 airline ticket and receive a $50 discount code at checkout. Only the $450 net amount paid after the discount is considered an eligible purchase.

• Scenario 3: You pay your utility bill with your Amex card and later receive a bill adjustment credit for an overpayment. The original utility payment is an eligible purchase, but the credit is not.

This highlights the importance of carefully tracking your spending and differentiating between purchases and credits. Understanding this distinction ensures you accurately track your progress towards rewards milestones and avoid any unexpected discrepancies in your points balance. Always check your Amex statement regularly to verify that all your purchases are properly reflected and that any refunds or credits are correctly accounted for. If you have any questions regarding a specific transaction’s eligibility, contacting Amex customer service directly is always recommended. Understanding Amex’s definition of “eligible purchases” is key to unlocking the full potential of your Amex card.