⚠️ Amex Is Emailing People to Cash Out Points for Gift Cards — Here’s Why You Shouldn’t Do It
Hey friends, what’s up? Phillip here with Points with Phillip, and today I’ve got a bit of a warning for you.
American Express recently sent me an “interesting” email encouraging me to cash out my Membership Rewards points for gift cards—framing it as a way to “provide for my family,” buy gifts, and basically feel good about using my points.
And look… I had to admire the ruthlessness of it all. In a way.
Because here’s the uncomfortable truth:
Redeeming Membership Rewards points for gift cards is one of the worst possible uses of Amex points.
Like, truly bottom-tier.
Let’s break down why Amex pushes this so hard—and why you should almost never take the bait.
Why Amex Gift Card Redemptions Are So Bad
When you redeem Membership Rewards points for gift cards, you’ll typically get:
0.6¢ to 0.8¢ per point
Maybe 1¢ per point if there’s a sale (rare)
So if you have 100,000 Amex points:
Gift cards: ~$600–$800
At best: ~$1,000
Meanwhile… you could get $1,000+ in FHR value, or thousands in value through transfer partners.
This is why gift cards rarely—if ever—make sense.
Amex knows that gift cards are low-cost redemptions for them. So naturally, they push them. Hard.
Better Redemption #1: Fine Hotels & Resorts
If you really have no interest in transfer partners, you can always fall back on:
1 cent per point toward Fine Hotels + Resorts (FHR)
Is that the best use?
No.
Is it dramatically better than gift cards?
Absolutely.
At least with FHR you’re getting:
Late checkout
Property credits
Room upgrades
Free breakfast
And you get to travel instead of collecting plastic rectangles.
Better Redemption #2: Transfer Partners (This Is Where Amex Shines)
Here’s where people get real value.
✈️ My Cathay Pacific Example
I recently transferred 126,000 Membership Rewards to Cathay Pacific Asia Miles.
Those points turned into two business class seats worth nearly $5,000 in retail value.
Compare that to Amex’s email suggestion:
126,000 points → gift cards: ~$900–$1,000
126,000 points → FHR: ~$1,260
126,000 points → Cathay Pacific business class: ~$5,000
The difference is massive.
Why Gift Cards Are Worse If You Pay High Annual Fees
If you’re paying:
$325 for the Amex Gold, or
$895 for the Amex Platinum
…those fees aren’t just for perks. You’re paying for the ability to earn points faster.
So if you:
Pay for higher multipliers
Earn those bonus points
Redeem them for 0.6¢ gift cards
…you’re essentially burning the value you paid extra to earn.
If you want gift cards, Discover or a flat-cashback card does that far better.
Better Redemption #3: Hilton Transfers (Underrated Strategy)
Amex points transfer to Hilton at a 1:2 rate.
That means:
1 Amex point → 2 Hilton points
Hilton points are often worth ~0.5¢ (baseline)
So even a mediocre Hilton redemption gives you:
1 Amex point = ~1¢ in value
But if you find a strong Hilton redemption?
You can easily hit:
1.2¢
1.5¢
2¢+ (yes, it happens)
That’s double or triple the gift-card value Amex wants you to settle for.
Better Redemption #4: Delta (When You Play It Smart)
Delta isn’t known for spectacular award rates…
But if you’re flexible, you can still score great value.
For example:
I recently booked a first-class domestic redemption at ~3¢ per point—because I was willing to take a 6:00 AM flight.
Was waking up early fun?
No.
Was sitting in first class with my wife worth it?
Absolutely.
Even a modest 1.2–1.5 CPP Delta redemption crushes gift cards.
How My Amex Cards Work Together
To give context for newcomers, here’s my personal Amex setup:
💳 Amex Gold – The Earning GOAT
$325 annual fee
4X on dining + groceries
$240 dining + Uber credits
$100 in Resy credits
$84 Dunkin’ credits
Realistically, this card prints points.
💳 Amex Platinum – The Travel Flex Card
$895 annual fee
5X on airfare + prepaid hotels
Centurion Lounge access (ATL’s is amazing)
$600 FHR credits
$400 Resy credits
$300 streaming
Other lifestyle credits
If you care about perks, lounge access, and premium travel, the Platinum delivers value far beyond the points alone.
💳 Blue Business Plus – The Quiet MVP
No annual fee
2X Membership Rewards on all purchases up to $50K
Perfect for non-bonus spend
A simple way to rack up 100K points per year
So, Should You Ever Redeem Amex Points for Gift Cards?
Honestly?
Almost never.
The only time it might make sense is:
You have very few points
You aren’t traveling
You don’t want to learn transfer partners
You absolutely need the gift card value today
Otherwise, you’re torching value that you paid for through annual fees, multipliers, and opportunity cost.
Final Thoughts
If Amex sends you an email encouraging you to redeem your points for gift cards…
Smile.
Nod.
Delete it.
You worked hard for those points.
You paid for those multipliers.
Don’t let Amex tempt you into handing back value for pennies on the dollar.
Use FHR.
Use Hilton.