American Express’ annual fee refund policy was to give a full annual fee refund if a card is cancelled within 30 days of the annual fee posting and a prorated annual fee refund if outside that 30 day window. In September 2016 they changed their policy to no longer offer prorated annual fee refunds when closing a card, but downgrading your card still worked to receive a prorated refund. It looks like there has been another.
Reddit user RlCHARlZARD let me know that they received a prorated annual fee rather than a full annual fee refund when product changing within 30 days of the annual fee posting. At first I thought this might have been a new American Express policy, instead it looks like that was always the case after American Express made the changes back in September 2016. I’ll update our post on annual fee refunds to make this point clearer.
Data Points
Some data points I gathered before I realized this wasn’t a new policy.
Downgrades:
- American Express Delta Gold to Blue (27 days after AF posted)
- American Express Delta Gold to Blue
- American Express Delta Platinum to Blue (7 days after AF posted)
- American Express Platinum to Green (29 days after AF posted)
- No specifics: 1
Same happened to me when I downgraded my BCP to BCE back in February: I got 11/12 pro-rated refund. It took them almost a week to fully process the downgrade as well. I called about the pro-rated refund and got the rest adjusted back by the CSR “as a courtesy” since I’d not used my card during that month.
Sounds like the way to go with Amex is to close/downgrade the card prior to the AF hitting.
This is new? For some reason, I always thought they were pro-rated, and it’s only when you cancel within 30 days that you get a refund. But then all the ones I’ve downgraded are cards that I’ve also upgraded.
Not new, just posting clarification since I didn’t know this was the case.
My billing cycle ends mid December for my personal plat. Does anyone know if I’d be more or less likely to get away with getting the $200 travel credit for next year, cancel vs downgrade? I never really figured out what the new clawback policies were for the travel credit. I’m def not paying another annual fee on the plat. Thanks in advance.
Citi also has same policy . I got prorated refund from them and product conversion took more than 4 weeks.
Does a closed card within 30 days still get a full refund?
Yes
Yes it should.
I downgraded my EDP card to ED 2 days after the AF posted, and I only received an $87.03 refund. Note, they charged me for 1 month’s worth of annual fee (refund = $95 x 11/12), even though I downgraded 2 days after the annual fee posted. This is consistent with FLL’s experience above. His refund was $68.75 (= $75 x 11/12).
Yup. Happened to the same downgrade for me earlier in June this year.
Only got $68.75 back only. The initial AF was suspended by the CSR so it was not even showing but the available balance was reduced by the $75. Then a $68.75 credit was posted next billing cycle, and $6.75 shown as outstanding balance that required payment.
It looks like downgrade must be done BEFORE AF is posted. Else you are out one month pro rata fee regardless.
In other words, it makes no sense to downgrade unless you still want to keep a card in the same family and dont want to apply anew (and affecting the 5/24 from Chase or whatever restrictions from BofA or Barclays).
Added this to our primary post to make it clearer, thanks
I closed my Amex Gold Delta Skymiles account a couple weeks ago (just after the 30 day period ended, dangit), and am receiving a prorated refund of the AF. Was told it could take into the next billing cycle to be posted though, and am still waiting for that.
Technically not supposed to work anymore but glad to hear they are still offering you a prorated AF refund on a cancellation outside the 30 day window.
For better profitability, obviously.
Yeah, I noticed this too. I downgraded my Surpass card last month (about 15 days after AF posted) and I only got back $68.75 out of $75 back.