Amex Reverses Controversial Reward Points Deductions Amid Customer Backlash

On November 9, 2026, numerous American Express (Amex) cardholders experienced a shocking revelation: thousands, and in some cases lakhs, of their membership rewards points had vanished from their accounts. This unexpected deduction left many customers bewildered, with some even discovering their rewards balances had turned negative. The incident prompted immediate complaints, leading to a swift response from Amex, which confirmed it would restore the lost points.

Affected customers reported losses that varied significantly, with some claiming deductions amounting to over 100,000 points. The sudden disappearance of these points raised serious questions about Amex's policies and the transparency of its rewards program. Historically, Amex had assured its customers that their rewards points would not expire as long as they maintained at least one active card, with points pooled across multiple cards.

By the evening of November 10, 2026, following a wave of complaints and threats to escalate the matter to the Reserve Bank of India Ombudsman, Amex took action. The company sent emails to affected cardholders, signed by Sanjay Khanna, CEO of American Express Banking Corp., India, stating that the deducted points would be restored within 48 to 72 hours.

In its communication, Amex explained that the adjustments made on November 9 were in accordance with its terms and conditions, which stipulate that unredeemed points associated with canceled cards are forfeited 30 days after cancellation. However, the company acknowledged the concerns raised by its cardholders and decided to reverse the adjustments, restoring points to their levels as of November 8, 2026, while also considering any points earned or redeemed since that date.

The core of the controversy lies in the retrospective application of a 30-day redemption rule, which many customers felt was unfair. Cardholders had long believed that their accumulated rewards would remain available as long as they held at least one active card, and the sudden enforcement of this rule caught them off guard. Ajay Awtaney, a long-time Amex customer and founder of LiveFromALounge, emphasized that the company's website clearly states that membership rewards points do not expire while the card account is active and in good standing.

According to ministerial filings,, the lack of clarity regarding how points are accumulated and redeemed across multiple cards further complicated matters. Cardholders typically see a combined rewards balance rather than a breakdown of points attributable to each card. This lack of transparency made it challenging for customers to track their points accurately, especially during card closures.

Interviews with affected cardholders revealed a common theme: frustration over the ambiguity of Amex's rewards program. Many shared screenshots of chats and emails with customer service representatives who assured them that their points would remain intact as long as they maintained an active account. This inconsistency between customer service assurances and the sudden deductions led to a significant erosion of trust among cardholders.

Ankur Mittal, co-founder and CTO of Card Insider, pointed out that while customers can access transaction-level points data on the Amex website, it requires manual review month by month to determine card-wise accumulation and redemption. He noted, "Expecting customers to manually reconcile this information, particularly at the time of card closure, is not practical."

The timing of these deductions coincided with Amex's upcoming transition to a new online portal scheduled for November 15, 2026. This portal will display membership rewards points separately for each card, a change that has raised additional concerns among customers. While the new system aims to enhance transparency, many cardholders fear that the retrospective application of the 30-day rule could lead to further confusion and potential losses.

In its latest communication, Amex reassured customers that the existing terms and conditions would continue to apply to cards canceled on or after November 15. However, the lingering questions about how the deductions were calculated and the overall management of rewards points remain unresolved.

The recent episode involving Amex's reward points deductions highlights the critical need for transparency and clear communication in customer loyalty programs. As the company moves forward with its new online portal, it must address the concerns raised by its cardholders and ensure that its policies are consistently applied and clearly communicated. The restoration of points is a positive step, but it is essential for Amex to rebuild trust with its customers by providing a straightforward and transparent rewards program that aligns with their expectations.