Overview
American Express’s line of premium cards has a slew of high-end perks to help validate its astronomical fees ($895 for both the personal and business versions). From unparalleled lounge access and elite status to shopping credits and exclusive experiences, those who can wield the Platinum line well can more than validate the cost.
One of those perks, found on both the American Express Platinum Card® and The Business Platinum Card® from American Express, is the $200 airline fee credit. Since its arrival, it’s been a popular add-on, allowing customers to save money on incidentals on the airline of their choice. Unbeknownst to many, there was a sneaky loophole allowing cardholders to maximize the credit in a way Amex never intended. But it looks like that path is closed.
What Does the Perk Allow?
The perk itself is simple. Customers select one qualifying airline (Alaska, American, Delta, Frontier, Hawaiian, JetBlue, Southwest, Spirit, and United Airlines), and use their Platinum card to cover incidental fees when using the chosen carrier.
Generally, these are limited to checked baggage, flight change fees, lounge day passes, pet kennel fees, phone reservation fees, and even in-flight refreshments. Flight tickets, points purchases, gift cards, upgrades, award tickets, and duty-free purchases have never been included.
It’s a generous benefit, even without the ability to buy tickets, but the limits often meant some cardholders weren’t using the whole credit or forced themselves to find ways to use it. But some customers had a smart workaround allowing them to do just that.
What was the sneaky workaround?
Customers would select United Airlines as their chosen carrier and open a United TravelBank account. TravelBank is a MileagePlus feature that allows members to deposit cash in a travel-specific savings fund. It’s really just a tool for budgeting, but it’s a nice concept, and it helps United keep customers in its ecosystem.
At this point, Amex Platinum cardholders would deposit funds into the account using the card, typically in increments of $50 or $100. In a rare oversight, Amex would code these deposits as an “incidental” with United, triggering the statement credit. Customers were then able to purchase flights with the $200 deposited in the account and reimbursed a few weeks later.
But multiple reports now suggest this loophole is closed. So, with the best (and yes, sneakiest) way to use the credit now a dud, how should you use the credit?
- Best for: Luxury Perks
- Annual Fee: $895
- Pay Over Time APR
- Reward Rate: 5X
- Recommended Credit: Good to Excellent
American Express Platinum Card®
As high as 175,000 Membership Rewards® Points
Offer Details:
You may be eligible for as high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
Why we like it
The Amex Platinum was once the sole dominating force in the luxury credit card space. While it now faces some stiff competition, it still offers unbeatable perks like unprecedented airport lounge access, elite status at Hilton and Marriott, and some outstanding statement credits making the mammoth $895 worth it for some.
Reward details
Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings.
You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
Pros & Cons
Pros
-
Large intro bonus
Incredible lounge access
-
Statement credits worth over $3,500 annually.
-
Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
Cons
-
The $895 annual fee is brutally high. Too high for many that can’t, or don’t want to take full advantage of its benefits.
-
Points-earning rates are low unless spending directly on flights or with the Amex Portal.
-
Some of the benefits, like travel credits, are more limited and are harder to use than competing cards’ offerings.
The Best Way to Use Your $200 Airline Credit
Once you know what’s happening, it’s best to take a breath. You have the information and can process how long you’ll be expected to be in the airport. If there’s no obvious end to the issue, you can make plans to leave the airport and head home, or rent a car. If it’s an overnight wait, you’ll hopefully have been offered accommodation near the airport.
For anything else, check out your credit card protections.
Consider your airline
It’s logical to pick the airline you fly with most, but that’s not necessarily the best idea. If you fly Delta 80% of the time and have a Delta card, you probably already have free checked bags or priority boarding. Sure, you can splash on a SkyClub visit or gorge on in-flight snacks, but you could actually save some money by assigning your perk elsewhere.
Opting for a budget carrier like Spirit can be a great choice. It typically charges exorbitant fees for added baggage, so having $200 in reserve allows you to book the super cheap flight without the annoying excess. That in itself can save you more than the $200 a year if you wouldn’t have flown the airline otherwise.
Even if you don’t want to go budget, consider the other big airlines at your nearest airport. Fly American, but find yourself on a United flight once or twice? Pick United, save on the baggage fees, and invest in an American co-branded card to take advantage of the broader advantages.
Cover baggage fees
Generally speaking, I think using the statement credit to cover baggage fees is the most sensible option, as it represents the most direct savings. Other options, while handy, can swing towards a more experiential use of the credit. There’s nothing wrong with that as such, but when you’re trying to validate the presence of an $895 card in your wallet, true savings should be the goal.
They can save you money beyond the basic baggage fee, too. Remember, most airlines have tiered their prices to a mad degree, with the “Basic” options often far cheaper than the traditional economy seats. An “Economy Light” seat from JFK to Paris can cost $130 less than a traditional economy seat. The $200 credit is enough for baggage at $75 both ways, so you’re actually saving $260 instead of the $200. Not too shabby.
Overweight/oversized baggage fees
In the same realm, but more situational, are overweight and oversized Baggage fees. I’m not a fan of casually overpacking, so I won’t ever advise that, but if you find yourself in a situation where you need to bring a little extra stuff, it can be a lifesaver. It’s definitely something I could have used prior to my move out to Malaysia. As it was our first base in a year, we naturally had more things to bring with us than when we were backpacking. I paid in excess of $200 per bag just to get it out there.
If you have a similar situation, whether it’s a move, a kid going to college across the country, or even bringing Christmas gifts, using the fees for this can be brilliant. Maybe not something to plan on in advance, but if the situation arises, it’s there.
Change fees
Change fees are another option that represents a real saving, but isn’t something you can necessarily plan for. In an ideal world, you won’t ever need to use change fees, but having the ability to cover them helps massively.
Airport lounges and annual memberships
We’re waltzing into the world of experiential uses for the credit now, and using it for lounge access is a great idea if you’re not fussed about practical savings. Of course, if you own the Platinum card, you already have pretty comprehensive lounge access, but it can be handy if you want to get into a specific lounge that’s not covered, or if you need to bring a guest. Day rates for the lounges often sit at around $50, so you have a good number of entries for your guest.
You can also use it to cover annual passes or, more likely, a portion of it. But if you were never going to spend that money on an annual pass anyway, it’s not a true saving, just a nice perk.
Other options
You can also use the credit for in-flight amenities, entertainment fees, seat assignment fees, and other little add-ons. But almost all of these fall very much under the luxury category. The exception to that is you are someone who will consistently pay for a seat fee or buy a ton of snacks mid-flight. At that point, it becomes a real saving for you.
I rarely do this, and a lot of people will avoid this too, hence why they are much further down the list.
- Best for: High-spending business owners and luxury perks
- Annual Fee: $895
- APR: 17.74% - 28.49% Variable
- Reward Rate: 1X-5X
- Recommended Credit: Good to Excellent
Business Platinum Card® from American Express
Earn 200,000 Membership Rewards® Points
Offer Details:
Elevated Welcome Offer: Earn 200,000 Membership Rewards® points after you spend $20,000 in eligible purchases on the Business Platinum Card® within the first 3 months of Card Membership.
Why we like it
The Business Platinum Card® from American Express remains one of the most sought-after cards on the market for good reason. It’s bursting with high-end perks like lounge access and helpful statement credits, while its massive 200,000 point intro bonus can’t be beaten.
The annual fee is high and it does take a good amount of spending to make the most of the this card, but for the right business owner, it’s unbeatable thanks to its steady earning rates in high-spend categories.
Reward details
5X points on flights and prepaid hotels on AmexTravel.com
Enhanced! 2X points on purchases at U.S. construction material & hardware suppliers, electronic goods retailers and software & cloud system providers, and shipping providers, as well as on each eligible purchase of $5,000 or more, up to $2 million of these purchases per calendar year. Purchases eligible for multiple additional point bonuses will only receive the highest eligible bonus.
1X points for each dollar you spend on other eligible purchases.
Pros & Cons
Pros
-
Massive intro bonus
Lounge access
-
Strong earning on high-spend categories
-
Tons of high-end perks and useful statement credits
-
Looks and feels fantastic
Cons
-
High annual fee
-
Spending threshold for the bonus is also high
-
Lesser spending businesses may find value in a cheaper card
The Point
The closing of the United loophole is a frustrating one for savvy Platinum cardholders. With that said, it’s a reasonable shift for Amex as it goes against the intended use of the credit. But there are still plenty of practical ways to use the $200 perk to make real savings, particularly with baggage fees and secondary airline choices.
by your friends at The Daily Navigator
