The American Express Platinum Card is known for its luxury travel perks, including airport lounge access, hotel elite status, and premium benefits. However, these features come with a high annual fee that many cardholders look to offset.
A common question is whether American Express Membership Rewards points can be used to pay the Platinum card’s annual fee. The answer is yes, but with certain limitations. This guide explains how to redeem points, the cost of redemption, and whether using points for this purpose is a good financial decision.
Can You Pay the Amex Platinum Annual Fee with Membership Rewards Points?
Yes, American Express allows cardholders to use Membership Rewards points to pay the annual fee. This can be done online for free or by calling customer service, though phone redemptions come with a charge.
Redemption Methods:
- Online: Redeem points via the American Express website at no additional cost.
- By Phone: Call Amex customer service and request a redemption. This method costs 800 Membership Rewards points per transaction.
While this option exists, using points for the annual fee is not always the best way to redeem them.
How to Redeem Membership Rewards Points for the Amex Platinum Annual Fee
1. Paying Online (No Extra Charge)
To redeem points online for your Platinum annual fee, follow these steps:
- Log in to your American Express account.
- Go to the “Pay with Points” section in your account dashboard.
- Select the annual fee charge from your billing statement.
- Choose “Redeem with Membership Rewards” and confirm the transaction.
- Check your updated balance to ensure the fee is covered.
2. Paying Over the Phone (800 Points Per Call)
If you prefer to redeem points by phone, here’s how:
- Call the Amex customer service number listed on your card.
- Request to use Membership Rewards points for the annual fee.
- An agent will process the redemption, deducting 800 points as a service fee.
- Verify the updated balance in your Amex statement.
Phone redemptions cost extra points and take longer to process, making online payments the better choice.
Rules and Limitations for Paying with Points
Before using Membership Rewards points to pay your annual fee, consider the following restrictions:
- You can only redeem points up to your current balance. If you don’t have enough points, you’ll need to cover the rest in cash.
- Membership Rewards points expire after three years if not redeemed. Always check your balance.
- You can view your points balance through:
- The Amex website
- Your monthly statement
- Sending a text message through Amex’s mobile services
- Once you redeem points for the annual fee, the transaction is final—you cannot reverse it.
- There is no option to set up automatic payments with points for the annual fee.
Is Paying the Amex Annual Fee with Points a Good Idea?
While paying the annual fee with points is possible, it may not be the best use of Membership Rewards.
1. Value Comparison: Paying the Fee vs. Travel Redemptions
The value of Membership Rewards points varies based on how they are redeemed:
- Annual Fee Payment: 0.6 cents per point
- Amex Travel Portal: 1 cent per point
- Airline & Hotel Transfers: 1.5 to 2 cents per point (or more, depending on the program)
- Gift Cards: 0.7 to 1 cent per point
For example, using 100,000 points to pay the annual fee only covers $600, whereas transferring them to airline partners could be worth $1,500 or more in flight redemptions.
2. Alternative Ways to Offset the Annual Fee
Instead of paying the fee with points, consider maximizing Amex Platinum benefits:
- Use the $200 Airline Fee Credit for baggage fees, in-flight purchases, and seat upgrades.
- Claim the $200 Uber Cash benefit for Uber rides and Uber Eats.
- Take advantage of the $100 Saks Fifth Avenue credit for statement reimbursements.
- Use the $189 CLEAR Plus credit to save on airport security fast lanes.
- Leverage hotel elite status benefits for free room upgrades and extra perks.
Using these benefits can offset the annual fee without sacrificing Membership Rewards points.
Other Ways to Use Membership Rewards Points
Instead of using points to pay the annual fee, here are better ways to redeem them:
- Book Travel: Use points for Amex Travel bookings at a higher redemption value.
- Transfer to Airline & Hotel Partners: Convert points into frequent flyer miles or hotel loyalty programs for better rewards.
- Pay Off Other Statement Purchases: Use points to cover eligible purchases instead of fees.
- Shop with Points: Spend points on Amazon, Best Buy, and Apple purchases.
- Redeem for Gift Cards: Some retail and travel gift cards offer higher redemption values than statement credits.
By choosing smarter redemption options, cardholders can maximize the value of their Membership Rewards.
Conclusion
Using Membership Rewards points to pay the Amex Platinum annual fee is an option, but it does not offer the best redemption value. Instead, cardholders should consider using points for travel, statement credits on other purchases, or transferring them to airline and hotel partners for greater benefits.
Before redeeming points, always compare the value of different redemption methods to make the most of your American Express rewards program.
Would you rather use your points to pay fees or save them for travel? Share your thoughts in the comments!
Frequently Asked Questions
Can I Use Points for a Partial Payment of the Annual Fee?
Yes, you can redeem points for a portion of the fee and pay the remaining balance with cash.
How Can I Check My Membership Rewards Balance?
You can check your points balance in the Amex website dashboard, mobile app, or monthly statement.
Can I Reverse a Points Redemption for the Annual Fee?
No, once points are used, the transaction cannot be undone.
Is It Better to Use Points for Travel Instead of Paying the Annual Fee?
Yes, redeeming points for travel bookings or airline transfers provides higher value than paying the fee directly.
Do Other Amex Cards Allow Paying Fees with Points?
Some other Amex cards may allow fee payments using points, but the redemption value is typically low.
