Register for E-mail alerts. Comment on articles. Sign up today, it's easy.
Close
The Washington Times Online Edition

KRALEV: Travelers unearth rare ‘deals’

ON THE FLY COLUMN:

How many frequent-flier miles or hotel points have you earned without setting foot on a plane or sleeping in a bed other than your own? To what lengths would you go to beef up your account?

Most of us have credit cards that earn points with at least one of the many loyalty programs available. There also are Web sites that track promotions in various industries on a daily basis. Then there are those deals that were never meant to be deals.

About two years ago, American Express Co., the fourth-largest U.S. credit card issuer, began what company officials called a pilot program that allowed customers to use their cards to buy traveler’s checks without the standard $15 fee. The limit was set at $1,000 a week per card.

Several months later, reports surfaced on the Internet that those transactions appeared as regular purchases on card statements, and if you had a co-brand American Express card from companies such as Delta Air Lines or Hilton Hotels Corp., you could earn miles or hotel points.

Having figured out that they could amass thousands of points at no cost, scores of cardholders descended on American Express offices around the country to buy traveler’s checks, even though they didn’t really need them. Although some of them used the checks for various purchases, most simply deposited them in their bank accounts and then paid their credit card bills with those same funds. For many customers, a stop at their local American Express office became a weekly habit.

You have to admit that it was a great deal - you circulate your own money between your bank and credit card accounts, and in a few months, you get a free plane ticket or hotel stay.

As you may have noticed, I’ve been using past tense, and with good reason. On Nov. 6, American Express sent a memo to all its offices instructing them to stop selling traveler’s checks to customers with co-brand cards.

The company never intended for this to become a points gold mine. In fact, no points should have been awarded for those purchases, said Desiree Fish, vice president for public affairs. “Those have been our terms and conditions for years, and we seek to enforce them,” she said, but she added that no points will be taken away retroactively. “We may reinstate the program in the future, but customers will not be able to earn points.”

Some of those who benefited from the unintended deal are angry at American Express for ending it, but most are understanding and happy about all the points they earned.

“Although I’m sad to see this point opportunity end, I don’t blame Amex at all,” said Bob from Long Island, N.Y., who asked that his last name not be used for fear of retribution. “It certainly makes sense to allow cardholders to buy traveler’s checks if they actually need them, but to give away points at a loss makes no business sense.”

Bob said he “started taking advantage” of the offer in June and “netted $27,000 in purchases,” earning 27,000 Hilton points and 15,000 Starwood points. The chain Starwood Hotels & Resorts Worldwide Inc. includes such brands as Sheraton, Westin and St. Regis.

“Amex discovered the loophole and plugged it,” he said. “That’s life. Move on to the next deal.”

If you thought those who visited an American Express office every week went too far in pursuit of points, you probably will find the next deal some people have moved to even more peculiar.

In the summer, the U.S. Mint announced a “circulating $1 coin direct ship program,” making it “easy for retailers, financial institutions and other interested parties to obtain smaller quantities of $1 coins than can otherwise be obtained from the Federal Reserve.”

Story Continues →

View Entire Story
Comments
blog comments powered by Disqus
About the Author
Nicholas Kralev ON THE FLY

Nicholas Kralev ON THE FLY

Nicholas Kralev is The Washington Times’ diplomatic correspondent. His travels around the world with four secretaries of state — Hillary Rodham Clinton, Condoleezza Rice, Colin Powell and Madeleine Albright — as well as his other reporting overseas trips inspired his new weekly column, “On the Fly.” He is a former writer for the weekend edition of the Financial Times and ...

You Might Also Like
  • An Army carry team moves a transfer case containing the remains of Staff Sgt. Israel P. Nuanes after arrival at Dover Air Force Base, Del. Nuanes died in Afghanistan supporting Operation Enduring Freedom. (Associated Press)

    Military diligent in quest to locate its missing

  • Presumptive Republican presidential nominee Mitt Romney speaks to reporters on a campaign charter flight between New York and Washington on Wednesday, May 23, 2012. (AP Photo/Mary Altaffer)

    Romney sees D.C. school vouchers as model for U.S.

  • A snapshot posted on an internal GSA website shows attendees at the four-day, $823,000 2010 Western Regions conference in Las Vegas participating in a poolside activity.

    High-level officials partied with GSA in Vegas

  • Celebrities In The News
  • Viola Davis (AP Photo/Chris Pizzello)

    Viola Davis: Actress addresses R.I. high school alma mater

  • Singer Kanye West, left, and television personality Kim Kardashian arrive for the screening of Cruel Summer at the 65th international film festival, in Cannes, southern France, Wednesday, May 23, 2012. (AP Photo/Francois Mori)

    Kanye and Kim Kardashian: Cuddles in Cannes

  • American pop singer and songwriter Lady Gaga poses May 19, 2012, before the media upon her arrival in a hotel in Manila's financial district of Makati, Philippines. (Associated Press)

    Lady Gaga: Singer angers Thai fans with fake Rolex comment

  • Happening Now

        Independent voices from the TWT Communities

        Travel the World

        It's a big world to play in, and learn from. Join us as we travel it's boundaries and beyond.

        Medicine and Politics in America

        Health care reform, organized medicine, physician practice management, and patient care--a real time look at the challenges facing doctors and patients in America today.

        Political Potpourri

        A collection of reader guest articles, thoughts and opinions by Communities writers and breaking news and information.

        Premium Cable

        Distilling the best that television has to offer with news, reviews, previews and insights into premium cable programs and award winning series