I recently booked a Fine Hotels + Resorts property in Sedona using American Express’ Pay with Points feature. Due to logistical changes, I had to cancel the trip, which led me to an important realization: when you use Pay with Points and cancel your reservation, your Membership Rewards points do NOT automatically return to your account. Instead, the refund is issued as a statement credit at the same 1 cent per point (cpp) rate that you originally redeemed them for.
This might not seem like a big deal at first glance, but it absolutely is. Here’s why you should always request your points back instead of accepting the cash refund.
According To Amex, You Can Get Your Points Back If You Are Within TEN Billing Statements Of The Original Charge
American Express allows you to request your points back as long as you cancel within 10 billing statements of the original charge. This is nowhere that I can find in the terms, but was relayed to me by a Membership Rewards phone rep. Regardless, I would request the points back as soon as the refund hits your statement. f you don’t take action, you’ll simply get a cash credit at the fixed 1 cent per point rate, which is far from the best use of Membership Rewards points.
Why You Should Want Your Points Back
While 1 cent per point might seem reasonable, you can often get far more value from your points by transferring them to travel partners. Amex Membership Rewards points transfer to numerous airline and hotel programs, where they can yield significantly more value per point.
What to Do When Canceling a Pay with Points Booking
If you’ve used Pay with Points and need to cancel, follow these steps:
- Cancel the reservation as usual.
- Monitor your Amex account for the refund, which will come as a statement credit at 1 cpp.
- Call Amex Membership Rewards customer service asap and request the points be reinstated.
- Verify the points post back to your account so you can maximize their future value.
Final Thoughts
If you use Pay with Points, it’s crucial to be aware of how cancellations are handled. Letting your refund remain as a statement credit means locking in a mediocre redemption rate, while requesting your points back keeps your options open for higher-value redemptions in the future. Always take the extra step to reinstate your points—you’ll thank yourself later when you’re booking that next business-class flight or luxury hotel stay at a fraction of the cost!
The Points Mom’s Got IT!
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