5 Strategies for Getting the Most Value from Your AmEx Membership Rewards Points

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With such a strong emphasis on ways to earn points and miles these days, many overlook the equally important aspect of redeeming them. While it’s thrilling to score a new sign-up bonus, that’s the easy part; the real challenge lies in maximizing the value of those points.

American Express is renowned for enticing new customers with appealing welcome bonuses that usually include substantial points. It's also recognized for its impressive earning rates on certain purchase categories, making it easy to accumulate points. However, many are unaware that redeeming AmEx points (officially known as Membership Rewards Points) requires a bit of strategy. Often, redeeming points for travel can provide tremendous value, while using them for statement credits or shopping may significantly diminish their worth.

The newly relaunched, benefit-rich American Express® Green Card (annual fee $150, see rates and fees) features an exceptional two-part introductory bonus, offering 60,000 Membership Rewards points after spending $3,000 within the first six months of card membership. Additionally, cardholders earn 20 percent back on eligible travel and transit purchases made during the first six months, up to $200 in statement credits.

With 60,000 points, you could potentially secure a business-class ticket to Paris on Air France valued at over $3,000, a feat I've achieved personally. Conversely, those same 60,000 points could be exchanged for just $300 in statement credits—a common scenario (womp, womp). The stark contrast between $3,000 and $300 is striking, to say the least. Here, we’ll share our top five strategies to help you maximize your points and land you in that luxurious business-class seat beside us on the flight to Paris.

1. Transfer to airline and hotel partners for the most rewarding point redemptions

American Express Membership Rewards points are highly valued because they can be redeemed in various ways. Options include travel through AmEx Travel, gift cards, shopping, charitable contributions, and more. To truly maximize Membership Rewards, plan to transfer your points to 17 airline partners—3 domestic and 14 international—as well as 3 hotel partners. Consider these transfers as swapping one currency (Membership Rewards points) for another. With 20 transfer partners, Membership Rewards stands out as the premier credit card loyalty program for transferable points, surpassing competitors like Chase Ultimate Rewards, Capital One points, and Citi ThankYou Points.

When redeeming points for travel, expect a baseline value of at least 1 cent per point (often significantly higher). However, using points for shopping generally offers a fixed return of 0.5 cents per point, 0.6 cents per point for retail purchases via the AmEx portal, and 0.7 cents per point when redeeming on Amazon and other online partners, as well as for gift cards.

With a plethora of airline and hotel chain partners, cardholders aren't limited to a single carrier or hotel brand. They can freely choose when and where to transfer their points. Transfers can easily be completed directly through the American Express website, and they often happen instantly.

2. Be aware of transfer ratios with airline and hotel partners

Most transfers between Membership Rewards and airline or hotel partners occur at a 1:1 ratio. This applies to airlines such as Aer Lingus AerClub, Air Canada Aeroplan, Air France/KLM Flying Blue, ANA, Asia Miles, Avianca LifeMiles, British Airways Executive Club, Emirates Skywards, Etihad Guest, Iberia Plus, Qantas Frequent Flyer, Singapore Airlines KrisFlyer, and Virgin Atlantic Flying Club. For hotels, this ratio applies to Choice Privileges and Marriott Bonvoy.

There are three exceptions to the 1:1 transfer rule. AmEx points transfer to Aeromexico Club Premier at a rate of 1:1.6, to JetBlue True Blue at 1:0.8, and to Hilton Honors at 1:2.

3. Take advantage of limited-time transfer bonuses

Among AmEx’s various partnerships, certain ones are notably more rewarding. Based on experience, the partnerships that tend to provide the most value include Air Canada Aeroplan, Air France/KLM Flying Blue, British Airways Executive Club, Hilton Honors, Iberia Plus, Singapore Airlines KrisFlyer, and Virgin Atlantic Flying Club.

With this in mind, I always seize the opportunity when AmEx announces a transfer bonus with one of these partners, which occurs multiple times throughout the year. For instance, from July 1 to August 31, 2023, AmEx offered a 30 percent bonus for points transferred to either British Airways Executive Club or Iberia Plus, translating to a ratio of 1:1.3. Personally, I frequently use Iberia Plus points for my business-class flights to and from South America on LATAM, another Iberia partner, so I eagerly transferred a significant amount. This allowed me to book a one-way business-class flight from La Paz, Bolivia, to Miami (with a stop in Lima) for just 45,000 Iberia Plus points (equivalent to 35,000 AmEx points), which would cost over $4,000 otherwise.

In a similar vein, AmEx had two separate promotions in 2022 offering a 25 percent transfer bonus with Air France/KLM Flying Blue. Given that Paris is always appealing, and Air France offers business-class rates starting at 70,000 Flying Blue points, I didn’t hesitate to transfer 60,000 points each time to secure a round-trip ticket in business class. I can’t decide what was better—the lie-flat seat, premium champagne, and exquisite cuisine while flying across the Atlantic, or the fact that I paid less than $3,000 for each leg of the trip!

4. Explore Amex Travel as an alternative to point transfers

For those who find transferring points between programs and navigating various systems daunting, Amex Travel offers a simpler way to utilize Membership Rewards points. When you book through the American Express Travel portal, points can be redeemed at a rate of 1 cent each. So, a $500 hotel room would cost 50,000 points, and a $500 flight would also be 50,000 points—simple and straightforward.

Sometimes, Amex secures discounted rates with airlines, known as Insider Fares, allowing you to redeem points for even better value. For example, a flight that usually costs $500 might only require 45,000 points. However, don’t expect to book that $3,000 Air France flight for just 60,000 points through Amex Travel; such high-value rewards demand thorough research and effort to explore partner opportunities.

5. If you prefer cash back, select an AmEx card that earns cash instead of points

Membership Rewards points excel in travel redemptions, but they fall short when redeemed for cash back, statement credits, gift cards, or shopping, with rates plummeting to as low as half a cent per point. If cash back is your goal, consider an AmEx card designed to reward you in actual dollars rather than Membership Rewards points.

The Blue Cash Preferred® Card for American Express ($0 for the first year and $95 annual fee thereafter, see rates and fees) offers 6 percent cash back at U.S. supermarkets on up to $6,000 per year (then 1 percent after that), 6 percent on select U.S. streaming services, 3 percent back at U.S. gas stations and transit, and 1 percent on all other purchases. Currently, the card is enticing new cardholders with a $250 statement credit after spending $3,000 within the first six months.

If you want to experience travel like a VIP without overspending, consider using an AmEx card that earns Membership Rewards points on your purchases and offers a substantial sign-up bonus after you meet a spending threshold. Right now, the American Express® Green Card is providing an incredible 60,000-point welcome bonus along with $200 in statement credits. The American Express® Gold Card (annual fee $250, see rates and fees) offers a 60,000-point introductory bonus after spending $4,000 in the first six months. Meanwhile, The Platinum Card® from American Express (annual fee $695, see rates and fees) boasts an impressive 80,000-point welcome bonus after you spend $8,000 within your initial six months of membership.

We’ll meet you in business class on our way to Paris.

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