Amex makes U-turn on reward points deductions after complaints from cardholders
NEW DELHI: Several American Express (Amex) credit cardholders woke up on 9 November to find that thousands, and in some cases lakhs, of reward points had disappeared from their accounts. Some even found their rewards balances in the negative. These were points that did not expire as long as customers held at least one active card, with rewards earned across multiple cards accumulated in a common pool.
Mint spoke to five affected Amex cardholders, who confirmed deductions from their accounts, with some reporting losses running into lakhs of points.
By the night of 10 November, Amex had moved to reverse the deductions following a spate of complaints from cardholders. Many had threatened to escalate the matter to the Reserve Bank of India Ombudsman if the issuer failed to resolve the issue or provide a clear breakdown of how the deductions had been calculated.
Emails signed by Sanjay Khanna, chief executive officer of American Express Banking Corp., India, were sent to several cardholders on 10 November, saying the deducted points would be restored and credited to one of their active Amex card accounts within 48–72 hours. Mint has seen the email sent to an Amex cardholder.
In response to Mint's queries, Amex said the adjustments to membership rewards points balances on 9 November were in line with its applicable terms and conditions, which stipulate that unredeemed points associated with cancelled cards are forfeited 30 days after cancellation. “After carefully considering the concerns shared by our Card Members, we have decided to reverse these adjustments. Affected Card Members’ Membership Rewards® points balances will be restored to their 8 November 2026 levels, taking into account any points earned or redeemed since then,” the company said in its statement.
The deductions came ahead of Amex's transition to a new online portal on 15 November, under which membership rewards points previously pooled across multiple cards will be displayed separately for each card. In its latest email, the issuer clarified that the existing terms and conditions would continue to apply to cards cancelled on or after 15 November.
What upset the cardholders
The biggest grievance was what customers saw as the retrospective application of a 30-day redemption rule.
Affected cardholders told Mint that Amex had long maintained that membership rewards points did not expire as long as the card account remained active. Since points earned across multiple cards were combined into a single pool, many believed their accumulated rewards would remain available as long as they held at least one active card.
Several cardholders also shared screenshots of chats and emails with Mint in which customer care executives appeared to assure them of the same.
Ajay Awtaney, founder of LiveFromALounge and an Amex customer for 15 years, said this was how the programme had operated for years. “The company's website states that membership rewards points have no expiry and can be redeemed while the card account is active and in good standing, subject to programme terms.”
Moreover, cardholders holding multiple Amex cards see a combined rewards balance rather than a clear breakup of points attributable to each card, making it difficult to establish how many points belong to a particular card.
Ankur Mittal, co-founder and chief technology officer of Card Insider, said that while customers can access transaction-level points data on the Amex website, it must be reviewed manually, month by month, to work out card-wise accumulation and redemption.
“There is no simple consolidated card-wise summary showing how many points were earned, redeemed or remain attributable to each card,” Mittal said. “Expecting customers to manually reconcile this information, particularly at the time of card closure, is not practical.”
The calculation was further complicated by the fact that rewards were generally redeemed on a first-in, first-out (FIFO) basis, Awtaney added. “Points earned earlier are used first. Customers have no option to specify that they want to redeem points earned on one particular card.”
This was particularly problematic for customers whose cards had been closed several years earlier.
Deduction calculations unclear
Complaints extended beyond points earned on previously closed cards. Several cardholders told Mint that points had been deducted from their active cards, while others said points earned on a current card appeared to have been attributed to an older, cancelled card.
Customers who had upgraded their cards also reported losing points, raising questions about whether the system had classified replaced or upgraded cards as cancelled accounts. A few cardholders had their points reinstated on 10 November after complaining to Amex, before the issuer announced the broader restoration.
Some customers also reported negative reward-point balances following the deductions. A few were able to close their Amex cards despite these balances, although the implications remain unclear. Mittal said card issuers generally generate a final statement after an account is closed, and Amex could potentially levy charges corresponding to negative rewards balances. Customers might also encounter a negative rewards balance if they applied for another Amex card in the future, he said.
Amex's latest communication addresses the restoration of points balances but does not specifically clarify how accounts closed during the intervening period, or any charges arising from negative rewards balances, will be treated.
Was Amex trying to cut its rewards liability?
Experts had questioned whether the deductions were part of a broader effort by Amex to reduce the cost of its rewards programme. Card issuers account for reward points as future redemption obligations, and forfeiting accumulated points can reduce the liability on their books.
Over the past year, Amex has devalued rewards and benefits on some of its cards. It is not alone: other major issuers, including HDFC Bank, ICICI Bank and SBI Card, have also revised benefits on several credit cards amid pressure on the economics of their card businesses.
“Extinguishing accumulated reward points could reduce liabilities carried on the company's books,” Awtaney said.
Mittal also linked the deductions to efforts to reduce outstanding rewards liability. “It could have been a step to reduce its outstanding rewards liability,” he said, adding that invoking the 30-day clause after years of allowing pooled points to remain available suggested a change in practice aimed at reducing rewards costs.
While devaluations are common across banks and credit card issuers, retrospectively taking back accumulated rewards is less common. Such deductions are more typically associated with cases where customers are found to have exploited loopholes or misused rewards programmes to maximise benefits.
Some experts believe Amex's move could have been prompted by customers repeatedly closing and reopening cards to maximise referral and welcome benefits. Mittal said such customers were likely to constitute a relatively small proportion of the cardholder base and that Amex could instead have restricted their eligibility for future applications.
Amex has now agreed to restore the points, but questions remain over whether the shift to card-wise rewards balances from 15 November will affect how customers can redeem points across multiple cards.
Customers who received the restoration email should check their balances after the promised 48–72-hour period and reconcile them with their balances as of 8 November, accounting for subsequent earnings and redemptions. Those who continue to find discrepancies can raise a formal complaint with Amex and seek a detailed card-wise calculation.