AMEX Forced account closure

[levelnine]

How does it breach T&Cs?

Sorry, should have been clearer. Gift cards are against US SUB T&Cs, not Australian SUB T&Cs, and they aggressively enforce it. Not surprised they are on the look out for gift card abuse here too. Used for manufactured spending, money laundering, etc etc.

 

[foggy]

I’m not sure why Amex would have a problem with this

reason I was given is that they "can't verify the spend". I bought another $6k worth of apple gift cards from 15% off Apple eGift Cards - Variable Load ($1000 Max) @ GiftCards.com.au yesterday. Lets see if issues will still come up.

 

[Pele]

reason I was given is that they "can't verify the spend". I bought another $6k worth of apple gift cards from 15% off Apple eGift Cards - Variable Load ($1000 Max) @ GiftCards.com.au yesterday. Lets see if issues will still come up.

I like the way you roll brother!

 

[33kft]

reason I was given is that they "can't verify the spend".

Was your spend towards a sign-up bonus? I buy significant gift card volume during promos at colesworth and it just shows up as the supermarket name + location, I'd be shocked if amex ever pulled me up but I am 6+ years on this card so they can't call it manufactured spend for bonus points

 

[foggy]

Was your spend towards a sign-up bonus? I buy significant gift card volume during promos at colesworth and it just shows up as the supermarket name + location, I'd be shocked if amex ever pulled me up but I am 6+ years on this card so they can't call it manufactured spend for bonus points

No, i've had the charge card since 2014. it is just unusual spending pattern though, I needed some goodguys gift cards for appliances

 

[33kft]

No, i've had the charge card since 2014. it is just unusual spending pattern though, I needed some goodguys gift cards for appliances

Ah, charge card. Mine is a credit card and I am fairly sure these types of abnormal patterns are less concerning to AMEX on credit cards given pre approved limits, subject to not doing things that AMEX don't seem to like such as going into credit and cycling the card up to the limit several times over in short succession.

I have happily hit my card with anywhere up to 20k at a time (tax, big bills, bonus points on prepaid cards) but would not have ever done that more than 2 times over in a month that I can recall.

It had one marked downside for me, I bought up big on prepaid cards last year to avoid having to apply for a visa/MC card alongside my AMEX because of exclusion periods for bonuses (and surviving with just an AMEX works until it doesn't, eg car servicing don't accept it), and the next month Qantas did their 20% bonus points if you spend $xx per month promo which they clearly derived from my 3 month spend as the amount to qualify was astronomical and there were no good offers during that time, so I missed out on that one.

 

[Aussietraveller86]

FWIW, I had a similar experience when I first got my amex platinum card.

They suspended my card due to "large" spend until I provided proof of income, etc. No issues since then.

Could it be that you didn't provide the details they needed in time and they closed it?

 

[0x012fd0aa]

FWIW, I had a similar experience when I first got my amex platinum card.

They suspended my card due to "large" spend until I provided proof of income, etc. No issues since then.

Could it be that you didn't provide the details they needed in time and they closed it?

Strange that I don't have an issue with single purchases over $50k on the plat charge card... maybe not large enough...

 

[albyd]

Strange that I don't have an issue with single purchases over $50k on the plat charge card... maybe not large enough...

I think the issue here as I’ve understood it (please correct me if I’m wrong) is with the charge card, your past conduct is effectively what determines Amex’s comfort with your spend. If they don't have any track record yet or spend outside your "normal" pattern, (ie you've only just recently opened the card or go from spending an average of $5,000/month to a $20,000 purchase suddenly), Amex think there's foul play involved and clamp down to avoid losses (and they would say protect you from poor spending behavior).

I think that's what's at play here. The credit card is a simpler to understand facility - spend up to your limit then no further without an "early" payment. Charge card has a "shadow" limit which fluctuates based on your spending pattern. Only through time, can you build up to larger purchases. In the meantime, you have to call up to get them approved and make a pre-payment if Amex request it. They need to see that you can afford to pay back what you've spent. I think that's why they introduced the "check spending power" tool on their portal so you can do that in the first instance before calling them to request approval for that purchase. Anecdotal evidence suggests not to use that tool too frequently or that may have similar consequences we're seeing here with account suspensions and closures.

I suspect that there would be subtle differences in the way they assess the credit applications as a result (I don't know for sure as I don't work in the industry), that's my "armchair" assessment.

 

[slowbro]

If they don't have any track record yet or spend outside your "normal" pattern, (ie you've only just recently opened the card or go from spending an average of $5,000/month to a $20,000 purchase suddenly),

Thats logical but on the first few months after I got the card my spend is around $4k then I got one big transaction $70k and it went throught. Before I go for that transaction I check the spending power and its allows me up till 200k

 

[albyd]

Nice result

 

[travelnutjohn]

i know someone recently who has had their account closed "due to a commercial decision" for asking for a credit surplus to be refunded to them, 10 year member

 

[foggy]

i know someone recently who has had their account closed "due to a commercial decision" for asking for a credit surplus to be refunded to them, 10 year member

they refunded something after paying off the balance?

 

[travelnutjohn]

they refunded something after paying off the balance?

they were expecting to buy something double their limit, or multiple transactions to the value of double their limit, but either they didnt, or decided not to, or used a different payment, so they called the amex requesting a refund, who said they will process it, and then the account got closed......

 

[foggy]

Oh yes, AmEx does not like you prepaying your credit cards.. I don't think any bank allows it?

 

[travelnutjohn]

Oh yes, AmEx does not like you prepaying your credit cards.. I don't think any bank allows it?

ive heard a few stories in the past eg once the account goes intro credit, the banks will/can close it

or

if you use more than your credit limit in a month and top up, the system will trigger and banks can close it

but I didnt know that banks dont like your account to be in credit,
ive read many times on here people putting their card into credit for a purchase....

admittedly, ive done it a few times before too, but no problems yet, however my amounts have only been a few $1000

 

[DC3]

Has the OP left the building?

 

[albyd]

I think American banks like Amex don’t like you putting the card into credit. I think Aussie hanks don’t care.

In the lead up to the Amex points devaluation in April 2019, I paid my Amex into credit multiple times - usually with an over the phone payment which I then spent.

Difference may have been a matter o constantly spending the credit rather than let it sit there unless there has been a policy change since 2019 which is possible.

 

[33kft]

I think American banks like Amex don’t like you putting the card into credit. I think Aussie hanks don’t care.

I think someone mentioned at one point that they lack the banking license to allow customers to be in credit? Seems like a reasonable explanation.

 

[slowbro]

Has the OP left the building?

according to his profile he hasnt login since the day he post the thread