9/1/16 Update: AMEX's new policy is in effect: no more prorated refunds of the annual fee.
Have an AMEX card? Today's the last day to get a prorated refund of the annual fee, if you cancel today. Specifically, AMEX's new terms state “If an Annual Membership fee applies, we will refund this fee if you notify us that you are voluntarily closing your Account within 30 days of the Closing Date of the billing statement on which that fee appears. For cancellations after this 30 day period, the Annual Membership fee is non-refundable.” (see AMEX: No More Prorated Refunds of Annual Fee).
Cancel or Keep the AMEX Platinum?
As always, it depends on the value you get out of your card. While I've decided to keep my AMEX Business Platinum for now, due to anticipated visits to AMEX Centurion Lounges, including some where I'll be bringing in my husband and son, that is the main value of the card to me at the moment, especially as the retention offer was so low–just 5000 Membership Rewards points (seeAMEX Retention Offers: Business Gold Rewards, AMEX Platinum and AMEX Business Platinum). We haven't kept my husband's AMEX Business Platinum, since he almost never travels without me, so one card is sufficient for both of us.
Cancel or Keep the AMEX Business Gold Rewards Card?
I've already accepted a retention offer for this card, so I'll be keeping it for now. I do like to have a diversity of transferable points and frequent flyer miles, and the main way we earn a category bonus for AMEX Membership Rewards points is via the 3X airline bonus. But we'll most likely cancel my husband's AMEX Business Gold Rewards card, after transferring all the points to a frequent flyer program, as the $195 is expensive just to preserve the option to transfer points later, especially as we mostly transfer to Singapore KrisFlyer anyway. There's currently a 50% bonus on transfers to British Airways Avios from AMEX Membership Rewards, but even with the bonus I'm less likely to use Avios for award travel these days than AAdvantage miles, when it's a oneworld award.
The Diminishing Relative Value of AMEX Membership Rewards Cards
AMEX should be afraid, very afraid of the new Chase Sapphire Reserve. For starters, the Sapphire Reserve has a lower effective annual fee of $150, thanks to $300 of the $450 annual fee easily reimbursed as statement credit for any travel spend. By comparison, the AMEX Platinum's $450 annual fee is only partially lowered by the $200 airline incidental credit, which is a much bigger pain to use: you have to select one airline that it will apply for, and few of these airlines make it possible to get e-gift cards that can then be used towards tickets. Officially, none of the $200 can be used for tickets.
The AMEX Platinum itself has no category bonuses, so it's a terrible card for travel or everyday use if you want to earn points faster. And even the AMEX Premier Rewards Gold card and AMEX Business Gold Rewards card only provide 3X for airlines, when purchased directly from the airline. The Chase Sapphire Reserve, on the other hand, provides 3X for all travel and dining, making it the card you definitely want to be using when traveling abroad or even for daily spend while commuting to the office by public transit or by taxi.
Don't Forget to Transfer Your Membership Rewards Points Before Closing Your AMEX Cards
If you do close your AMEX cards, make sure you either have at least one AMEX card liked to Membership Rewards still open, or that you remember to transfer all your Membership Rewards points to a frequent flyer program before closing your card. And it's always worth checking to see first if there's a good enough retention offer to keep your card open, since transferable points such as Membership Rewards are worth more, for their flexibility of transfer options, than the frequent flyer miles they can transfer to.
So you plan to cancel any of your AMEX cards today to get a prorated refund of the annual fee?
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FAQs
It's sometimes possible to get a American Express annual fee refunded due to financial hardship too. Otherwise, if you try to get a refund on your annual fee after 30 days, American Express will not offer you any full or prorated refund.
Does Amex refund annual fees prorated? ›
(3) If you cancel the Card, we will refund the annual fee if you notify us of your intention to do so within 30 days of the date of the statement on which the annual fee appears. For cancellations after this 30-day period, the annual fee is non-refundable.
How does Amex Pro rata refund work? ›
American Express has traditionally offered one feature which other UK credit card companies did not. If you took out a card with an upfront annual fee, you would receive a pro-rata fee refund if you cancelled your card part-way through the year. Amex decided to stop pro-rata fee refunds on 2nd October 2023.
Will I get my annual fee back if I cancel my credit card? ›
Many card issuers will usually credit an annual fee if you close the account and request a refund quickly enough. You have about 30 days after an annual fee posts to do this—give or take a few days. It varies by issuer and is not always guaranteed.
How to get back Amex annual fee? ›
The Centurion Card from American Express offers white-glove service to a select, chosen few. Better known as the Black Card, you'll need a personal invitation from AmEx to apply, and if approved, you'll be on the hook for a one-time $10,000 initiation fee on top of a $5,000 annual fee. Terms apply.
Can you get a prorated refund? ›
Sometimes, you may also be eligible for a prorated refund, which is a partial refund that's based on your usage of the subscription service. For example, if you've paid for a year of services but used them for only six months, you could get a refund of half the sum.
Can annual fee be refunded? ›
If you decide to cancel your credit card right after the annual fee is charged to your account, you can call your card issuer to cancel and ask for a refund.
How does a pro rata refund work? ›
With the pro-rata cancellation method, you compute the refund amount based on the remaining length of the policy. This means the insured only ends up paying for the number of days the insurance contract is actually in effect.
What is an example of a prorated refund? ›
If your car insurance quote was $750 for 6 months, you would expect to pay $125 per month. However, if after just over three months, you were unhappy with your provider, you could cancel, and they would refund the third month's payment on a prorated basis.
What is a prorated refund of unused premium? ›
On the flip side, pro-rata cancellation operates on a more straightforward principle. When a policyholder cancels their insurance policy under a pro-rata system, the insurance company calculates their refund based on the exact portion of the unused coverage period.
However you're able to contact American Express (email, live chat, mail, etc.), the hands-down best way to ask for a fee waiver is to call. Immediately ask to speak to the retention department. Explain your situation and that the annual fee doesn't make sense to pay anymore.
How to reverse credit card annual fee? ›
In case you see that the bank is still charging an annual fee despite you having met the criteria, you can call customer care and ask them to waive your annual fee. The bank will check whether you have spent the necessary amount, and if you have, your annual fee will be waived off.
Is it better to cancel unused credit cards or keep them? ›
Canceling a credit card will cause a direct hit to your credit score, so more often than not, you'll want to keep the account open. Correctly managing an open, rarely-used account may require some extra attention, but the added effort will help your credit in the long run.
Why the annual fee of Amex is so high? ›
American Express credit card annual fees range from $0 to $695, depending on the card. Generally, the higher the annual fee, the more rewards and benefits the card is likely to offer. American Express typically charges annual fees when the cardholder opens an account and again on each account anniversary.
How do I dispute an Amex annual fee? ›
Call us at: 1-800-446-6307 or write to us at: American Express, P.O. Box 30384, Salt Lake City, UT 84130. To investigate your dispute, we must hear from you no later than 60 calendar days after we sent the FIRST statement on which the problem or error appeared.
How many people have the Amex black card? ›
Amex Centurion Card qualifications, fees and benefits. Experts estimate that there are around 100,000 Amex Centurion cardholders in the world, with only about 20,000 of those being in the United States.
Does American Express charge annual fee right away? ›
When does Amex charge its annual fee? New cardmembers will see the annual fee on their first billing statement. In subsequent years, you'll see the annual fee in the anniversary month of your account.
Does Amex refund disputed charges? ›
A Charge is Disputed*
We'll work directly with the Card Member and try to resolve the case before reaching out to you. If more information is needed, you'll either receive an Inquiry or a Chargeback. Once you hear from us, you'll have 20 days to respond. Be sure to send your supporting documents before the deadline.
Can you negotiate Amex annual fee? ›
If you're on the fence about whether it's worth continuing to pay the fee, you can call and ask Amex to waive or lower it. You might not be successful at having the fee waived, but American Express is known to offer generous retention bonuses instead.
