Amex India Removes Lakhs Of Credit Card Reward Points Overnight, Cardholders Question Deduction

American Express India has removed membership rewards points linked to previously cancelled credit cards, triggering complaints from customers who claim they had no clear way to track or redeem these rewards before their cards were closed.

The company attributed the deductions to a technical glitch that allowed points to appear in customer accounts even after their redemption deadline had passed, according to a news report by NDTV Profit. However, customers holding multiple Amex cards have raised concerns about how the company identified points belonging to individual cards when rewards from different cards were combined in a common balance.

Amex Explains Removal Of Expired Points

Under American Express Membership Rewards rules, points earned through a cancelled card must be redeemed within 30 days of its closure. Any unused points after this period are forfeited.

In its communication to impacted customers, Amex explained that a technical problem had allowed expired points to appear in accounts beyond the permitted period. The company has now corrected the issue and adjusted customer balances according to its existing terms and conditions.

The deductions have drawn attention as some customers had accumulated rewards across multiple cards. Screenshots shared online show adjustments of 311,990 points, 53,528 points and 75,715 points on November 9.

One cardholder, Sumanta Mandal, claimed on X that 23,88,090 points had been deducted, pushing his account balance to minus 21,48,040 points. Another customer, Roshan Agarwal, estimated the value of the points removed from his account at around Rs 4.5 lakh.

Pooled Rewards Create Disputes Over Calculations

Amex's Membership Rewards rules recognise linked basic card accounts belonging to the same customer. Spending across these cards can contribute to a combined rewards balance under one Membership Rewards account.

Customers have questioned how the company separated points earned on individual cards when the rewards were displayed together. They also want to understand how redemptions made from a combined balance were accounted for before points linked to cancelled cards were removed.

The company's email does not provide a detailed breakdown of points earned, redeemed and deducted against each card. This has left affected customers seeking transaction-level calculations to understand the revised balances.

Separate Rewards Balances From November 15

American Express has announced a change in how rewards will be maintained from November 15. Customers holding two or more basic cards will have separate Membership Rewards balances for each card instead of one combined account-level balance.

The company also plans to distribute existing points according to the balances linked to individual cards. This change will give cardholders a separate view of rewards associated with each card and help them track redemption deadlines.