Amex has taken a stand against a clever loophole that some Delta cardholders were exploiting, and it's a move that's sure to spark debate. The company has now closed a popular money-making trick, and it's even going back to reclaim refunds from those who tried it.
For those unfamiliar, Delta American Express cards offered a sweet deal: statement credits for booking prepaid hotels and vacation rentals through Delta's portal. These credits ranged from $100 to $250, depending on the card's annual fee. But here's where it gets controversial: cardholders discovered that they could turn these credits into cash by canceling their bookings and keeping the statement credit.
Until recently, this loophole was a well-known secret among cardholders. However, Amex has now implemented a new policy, and it's not looking back. Starting around two weeks ago, Amex began reversing statement credits for cardmembers who canceled their bookings.
The Delta Stays benefit, as it was known, now operates similarly to the Amex Platinum's Fine Hotels and Resorts credit. Amex's terms state that credits may be reversed if refunded or canceled, but it seems they're now strictly enforcing this rule.
Amex keeps a detailed record of eligible Delta Stays spend and issued credits. When a refund is processed, it reduces the eligible spend and triggers a credit reversal, ensuring the credits align with the net spend. This new system even accounts for bookings made in one year for stays in the next.
For example, a Delta Business Gold cardmember booked a $180 room on January 29 and received a $150 credit on February 1. When they refunded the room the same day, Amex reclaimed $135, not the full $150. This is because last year's bookings were factored in, reducing the clawback amount by $15.
This change in policy significantly impacts those who were previously gaming the system. It makes it harder to justify the higher annual fee cards, as the benefits are now more limited. However, for those who genuinely intend to use the credits, it's still a valuable perk, offering a wide range of properties beyond premium hotel booking credits.
And this is the part most people miss: the Hilton Aspire resort credit clawback logic might also change soon. Many are wondering if Amex will take similar action, leaving Hilton cardholders in a similar situation.
The timing of statement credit reversals varies, with some experiencing same-day reversals and others waiting longer. It seems Amex is taking a case-by-case approach, leaving cardholders unsure of when their credits might be reclaimed.
So, what do you think? Is Amex right to close this loophole, or should cardholders be able to exploit these benefits? Share your thoughts in the comments below!
