AMEX is denying the $50 bonus on PASS card!

[jamounger]

We did get the mailer-I havent put in for the card yet. MY dd is 16 and taking the ACT an SAT and getting lots of college mailing. I bet that is how we got on their list because I do not have an AMEX

 

[cm8]

When did you all get the email? I haven't gotten it yet... I am an Amex cardholder though I did not get the mailer...but I never get those things. I also only ordered 1 card... Maybe they'll let it slide. LOL We'll see.

This does annoy me a little because people did call amex & were told that it didn't matter as long as they entered the code. Either honor it or don't...but don't say one thing then do another. No matter the outcome, it didn't cost us anything to try. Paid $50 for a $50 gift card. No harm no foul.

Would you expect the same of WDW too? Just saying?

 

[Avonlady1001]

Would you expect the same of WDW too? Just saying?

Expect? I don't believe I said I expected anything. But, yes, if I'm told something by a CM, I will then expect it & probably be upset if it doesn't happen (unless I'm asking about free dining release dates or some other rumored promo!!). I didn't call amex directly, so if I don't get it, no big deal. Just saying...

 

[mamalle]

I registered two cards but had some major problems trying to get the verifications in. So I gave up. Around the same time I received my AE statement and nothing about this offer so I figured it was too good to be true. They told me when I called to cancel that as long as I didnt go through with the verification from the bank- it would be cancelled.

 

[ajh88]

I'm glad I saw this before I ordered one - I was thinking of getting one for DSS for Christmas. I think there is a big difference between a generic code (like PASS50) that some people receive notice of in a mailer and a person specific PIN code that is unique to each person that receives it. I'm sure that the promotional people at AMEX aren't short-sighted enough to believe that by issuing a generic code they could prevent "unauthorized" users from accessing the offer. They went to the trouble of mailers - why not issue unique offer numbers too?

It sounds like maybe AMEX didn't think this through all the way - they certainly should have limited it to so many cards per address or account number or something (I don't know very many people who would have 20 different bank accounts or 20 different AMEX cards!). And as for losing money on every card they sell - aren't they doing that anyway by giving away $50 for each card purchased?

Oh well - no biggie to me - I suppose it would have been worth a shot but I won't bother now that I know it isn't being honored. I wonder if people who ordered 20-30 cards are having their orders honored (even if they did receive the mailer)...

 

[hambirg]

I got the e-mail too.

I do think it is a little crappy and short sided on AEs part. The Passcard page with the PASS50 code and promo came up in a normal Google search. But oh well. Nothing lost.

For those of you with an Amex card, I have read that people have been having some success calling the CS number. It would be worth a try.

 

[mum4jenn]

I did the verification but the money has not been taken from my account yet. I hope to still get it even though I more than likely will not get the bonus.

 

[CaliforniaDreamin]

And as for losing money on every card they sell - aren't they doing that anyway by giving away $50 for each card purchased?

No, they would have a marketing budget to allot $50 per individual invitation. They would not have this promotion if it was going to lose them money. Plus I'm sure they accounted for people who would not take advantage of the offer, along with interest AMEX would earn on money put on the cards, along with the people who forget to use, or lose their card, as well as people who decide in a year that they like using the card and will reload money onto it even when they begin charging the monthly fee again. Also, it's good advertising. They launched a new product and the bonus is to intice people to use the card not just for the bonus, but for the long run. The promotion was intended to reach a specific amount of people and at one card per name. AMEX has been a very successful company for decades. I don't think losing money was in the plan. However, if they do honor the people who didn't have an invitation, or the people who ordered 30 cards, then yes, they would lose money for every card sold. However, the original demographic of people who were targeted and sent this invitation, well, this bonus was aimed towards them for a reason. Anyone invited who gets this card and receives the bonus, is not counted as a loss. It's an investment.Anyone not invited, they can't honor because then they would lose money. It's a marketing scheme...nothing to do with generosity on AMEX's part.

ETA: They are also counting on people forgetting to cancel the card before Oct of next year. Even people who signed up for the card without invitation and will not receive the bonus. How many people are going to forget to cancel? A bunch. So they will actually be recouping money. There are so many marketing tricks that companies use. AMEX will not lose money on this promotion.

ETA#2: I'm trying to take a nap, but I keep thinking of things. lol
This promotion is going to give their 4th quarter numbers a boost. So when they come out with their Annual Report when their fiscal year ends, they will have some nice number to show to investors. Let's just talk about one person to make this easier for me to explain. John Doe, who was invited to receive the $50 bonus if he loaded the card with his own $50 before November, has actually invested with AMEX for a couple of months without realizing it. AMEX counts on these being Christmas presents and that no one will actually use them until January. So, AMEX just doubled their assets. So instead of reporting earnings or assets of $50 on their annual report, they can report $100.
Now let's take Jane Doe, who did NOT get an invitation but thought she might get the bonus. She loads $50 on the card but AMEX does not match. AMEX just gained $50 without investing a dime in Jane. It's money that Jane Doe gave to AMEX, and the money is theirs to add to their financials. Now granted, this is an allusion of earnings, because when Jane Doe and John Doe use their cards, it's no longer money that belongs to AMEX. So if we look only at Jane Doe and John Doe, AMEX now has $150 in their bank, earning interest, when they only shelled out $50. Multiply this by tens of thousands, and they are making some real cash, plus bumping up sales and earnings for their 4th quarter, which everyone wants to see on an Annual Report. Strong fourth quarter numbers in a bad economy makes Wall Street very happy with AMEX.

 

[msmayor]

ETA#2: I'm trying to take a nap, but I keep thinking of things. lol
This promotion is going to give their 4th quarter numbers a boost. So when they come out with their Annual Report when their fiscal year ends, they will have some nice number to show to investors. Let's just talk about one person to make this easier for me to explain. John Doe, who was invited to receive the $50 bonus if he loaded the card with his own $50 before November, has actually invested with AMEX for a couple of months without realizing it. AMEX counts on these being Christmas presents and that no one will actually use them until January. So, AMEX just doubled their assets. So instead of reporting earnings or assets of $50 on their annual report, they can report $100.
Now let's take Jane Doe, who did NOT get an invitation but thought she might get the bonus. She loads $50 on the card but AMEX does not match. AMEX just gained $50 without investing a dime in Jane. It's money that Jane Doe gave to AMEX, and the money is theirs to add to their financials. Now granted, this is an allusion of earnings, because when Jane Doe and John Doe use their cards, it's no longer money that belongs to AMEX. So if we look only at Jane Doe and John Doe, AMEX now has $150 in their bank, earning interest, when they only shelled out $50. Multiply this by tens of thousands, and they are making some real cash, plus bumping up sales and earnings for their 4th quarter, which everyone wants to see on an Annual Report. Strong fourth quarter numbers in a bad economy makes Wall Street very happy with AMEX.

First off, its not earnings at all. The money folks are putting on these cards is NOT income to AMEX in any way, shape or form.

While its true that their cash assets will increase, there is a corresponding increase in liabilities which CANCELS the effect of this cash bonanza.

For every $50 put on the card by a consumer and added to AMEX's investable cash, they have an equal liability to the consumer of $50.

The only boon to them comes in the form of merchant fees once the card is used and the monthly fee IF the consumer doesn't cancel. That may be disclosed in the notes, but it won't show up at all on their financials at this point.

 

[leahjade]

How will we know if we get the bonus or not?

 

[CaliforniaDreamin]

First off, its not earnings at all. The money folks are putting on these cards is NOT income to AMEX in any way, shape or form.

While its true that their cash assets will increase, there is a corresponding increase in liabilities which CANCELS the effect of this cash bonanza.

For every $50 put on the card by a consumer and added to AMEX's investable cash, they have an equal liability to the consumer of $50.

The only boon to them comes in the form of merchant fees once the card is used and the monthly fee IF the consumer doesn't cancel. That may be disclosed in the notes, but it won't show up at all on their financials at this point.

Until the consumer uses their card, the money is being held by AMEX and they are earning interest on it. What happens if the consumer never uses the card? Do they get a refund? No, AMEX just keeps the money in whatever account it is in. The consumer gives AMEX $50 in exchange for a product, the card. This is a sale, which results in earnings. If the card is never used, it remains earnings.

Not every $50 that a consumer puts on a card is going to be matched. Those that didn't receive an invitation will not receive the bonus, therefore AMEX has no liability. AMEX is earning interest scott free off of this money.
I agree that the fiscal year financials will not be a true reflection of what AMEX is making off this promotion. In fact, since no one can predict when, if ever, a consumer chooses to use the card, AMEX can only guess at what they will earn. But they will earn money in the form of interest, and fees from not cancelling. This is basically a gift card. Do you know how many billions of dollars companies earn from unused gift cards? This is flat out earnings. Selling a gift card makes a profit. Use of that gift card, in AMEX case, would erase the earning from the sale of the gift card. If I go to Walmart and purchase a $100 gift card, that money is part of sales. It's in no ones name.

Same thing here. AMEX is counting on people forgetting their card or losing it. They keep the money. But until the card is used, the money paid to AMEX to open the account, sits in their bank, not in the consumers. Therefore, it can be reported as income in the company financials.

 

[msmayor]

Until the consumer uses their card, the money is being held by AMEX and they are earning interest on it. What happens if the consumer never uses the card? Do they get a refund? No, AMEX just keeps the money in whatever account it is in. The consumer gives AMEX $50 in exchange for a product, the card. This is a sale, which results in earnings. If the card is never used, it remains earnings.

Not every $50 that a consumer puts on a card is going to be matched. Those that didn't receive an invitation will not receive the bonus, therefore AMEX has no liability. AMEX is earning interest scott free off of this money.
I agree that the fiscal year financials will not be a true reflection of what AMEX is making off this promotion. In fact, since no one can predict when, if ever, a consumer chooses to use the card, AMEX can only guess at what they will earn. But they will earn money in the form of interest, and fees from not cancelling. This is basically a gift card. Do you know how many billions of dollars companies earn from unused gift cards? This is flat out earnings. Selling a gift card makes a profit. Use of that gift card, in AMEX case, would erase the earning from the sale of the gift card. If I go to Walmart and purchase a $100 gift card, that money is part of sales. It's in no ones name.

Same thing here. AMEX is counting on people forgetting their card or losing it. They keep the money. But until the card is used, the money paid to AMEX to open the account, sits in their bank, not in the consumers. Therefore, it can be reported as income in the company financials.

No, its not a gift card...its a prepaid debit card.

A gift card generally means ALL the cash applied to it remains with the originating merchant. Kohl's gift cards, GAP gift cards, etc...in that case, retailers recognize the revenue immediately because they KNOW the money is theirs.

With this AMEX prepaid, NONE of the money stays with AMEX. It will go out to other merchants. AMEX will collect a fee, so perhaps that revenue is recognized immediately, but if you buy a $50 prepaid card from AMEX that is NOT $50 of revenue to AMEX. Only about 2-3% is revenue to them...the rest is a liability that will eventually go out to the merchant the owner uses the card at.

 

[CaliforniaDreamin]

No, its not a gift card...its a prepaid debit card.

A gift card generally means ALL the cash applied to it remains with the originating merchant. Kohl's gift cards, GAP gift cards, etc...in that case, retailers recognize the revenue immediately because they KNOW the money is theirs.

With this AMEX prepaid, NONE of the money stays with AMEX. It will go out to other merchants. AMEX will collect a fee, so perhaps that revenue is recognized immediately, but if you buy a $50 prepaid card from AMEX that is NOT $50 of revenue to AMEX. Only about 2-3% is revenue to them...the rest is a liability that will eventually go out to the merchant the owner uses the card at.

Ok, I just checked before I read your post and you are right, it is not a gift card.It's not a debit card either. They call it a Prepaid Reloadable Card. Not a gift, debit or credit card. Here is my question. AMEX has $50 of mine because I opened 2 of these Pass Accounts. These cards will not be given until Christmas. Where is the money sitting while the cards are unused? Would it not be held in an account where AMEX can borrow or draw interest from?

 

[Princess_Pris85]

so how soon after the reloads were these emails sent?

I just spoke to someone at customer service who said the emails were going to be sent in the next couple weeks as they verified who received the code.

Also, when I asked if he could check the status of the bonus for my card, he said there was no way to check in their systems who was getting the bonus and who wasn't. He said a separate verification department was handling it.

 

[msmayor]

Ok, I just checked before I read your post and you are right, it is not a gift card.It's not a debit card either. They call it a Prepaid Reloadable Card. Not a gift, debit or credit card. Here is my question. AMEX has $50 of mine because I opened 2 of these Pass Accounts. These cards will not be given until Christmas. Where is the money sitting while the cards are unused? Would it not be held in an account where AMEX can borrow or draw interest from?

Yes...it most certainly is available to them to invest or use as a source of financing. Its no different than if it was sitting in your own bank account, where the bank lends it out or invests short term, earning more money than they are paying you.

But the bank cannot in any way, shape or form claim your deposit as 'income'. Its a liability to you...they OWE you that money on demand, if you ask for it to be used to pay a retailer.

Same with this re-loadable card. AMEX agrees to pay it out on your behalf when you 'demand', or when you use it at a merchant. Its a liability...they 'owe' you that money when you ask for it to be disbursed.

By using one of these cards, you simply are moving money from your bank to the "AMEX" bank and getting a card to withdraw it.

The one issue I see with folks who have these cards is acceptability. There are businesses out there who do not accept American Express because of their higher merchant fees. I encounter it periodically with my own AMEX card. Whether these cards carry the same merchant fees is anyone's guess.

 

[CaliforniaDreamin]

Yes...it most certainly is available to them to invest or use as a source of financing. Its no different than if it was sitting in your own bank account, where the bank lends it out or invests short term, earning more money than they are paying you.

But the bank cannot in any way, shape or form claim your deposit as 'income'. Its a liability to you...they OWE you that money on demand, if you ask for it to be used to pay a retailer.

Same with this re-loadable card. AMEX agrees to pay it out on your behalf when you 'demand', or when you use it at a merchant. Its a liability...they 'owe' you that money when you ask for it to be disbursed.

By using one of these cards, you simply are moving money from your bank to the "AMEX" bank and getting a card to withdraw it.

The one issue I see with folks who have these cards is acceptability. There are businesses out there who do not accept American Express because of their higher merchant fees. I encounter it periodically with my own AMEX card. Whether these cards carry the same merchant fees is anyone's guess.

Thanks for the info! They can claim the interest they earn from my money, but not the $50 itself. I suppose this form of "currency" is throwing me off. Either that or I don't know squat about Economics.

 

[msmayor]

Thanks for the info! They can claim the interest they earn from my money, but not the $50 itself. I suppose this form of "currency" is throwing me off. Either that or I don't know squat about Economics.

Precisely.

The only point at which they can start 'claiming' any of the funds on the card as income is the point at which a monthly fee will be charged. They've said for the first year, the card is free...so no fee until October 2011. Once that month hits, if you have not canceled the card then they have the right to reach into your balance and remove $3.95 (or whatever the monthly fee is) and claim that as income. They can continue to do that until the card is canceled or the funds exhausted, whichever comes first.

 

[CaliforniaDreamin]

Ok, so the interest they earn on all the money on all the cards until the end of the fiscal year, could actually help their 4th quarter earnings. Right?
My point of the discussion was that AMEX would make money off of all cards (even the ones not eligible for the promo as I originally stated), so it's not really AMEX's generosity at work here, it's, as usual, the money they can earn that drives the train. Do you think that's an accurate statement?
And then next years 4th quarter, they will begin collecting the monthly fees for those who haven't cancelled their card, so this sets them up to look good next year, too.

 

[msmayor]

Ok, so the interest they earn on all the money on all the cards until the end of the fiscal year, could actually help their 4th quarter earnings. Right?
My point of the discussion was that AMEX would make money off of all cards (even the ones not eligible for the promo as I originally stated), so it's not really AMEX's generosity at work here, it's, as usual, the money they can earn that drives the train. Do you think that's an accurate statement?
And then next years 4th quarter, they will begin collecting the monthly fees for those who haven't cancelled their card, so this sets them up to look good next year, too.

Help their fourth quarter? Maybe. But I seriously doubt it will be so significant to be worthy of even a passing mention in their financial reports, other than to mention a new product they are offering. Its not going to have that much of an impact, and it may even be negative since they are giving money OUT to eligible purchasers.

The real benefit as I see it is to cultivate young consumers to their brand...the AMEX card...and gain their loyalty once eligible for a regular credit account. THEN it becomes a money-maker for them.

 

[richmond282]

Not going to enter into the discussion on earnings and such... I have not recieved an email about receiving or not receiving a bouns. I honestly have no idea if I got a mailing or not, since I never look at that stuff. It all goes right in the trash. However, I knew there was this possiblity when I ordered the card, so I'm not upset either way. I am going to go ahead and reload my card, since I like the idea of using this instead of carrying around a bunch of cash. We already have a debit card through our bank, but we each receive spending money, so I'd like to have that in a seperate account. I guess i'll just wait and see.