Question about Authorized Users

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
5 posts
Marlin
Green Member
Green Member
 
Posts: 5
Joined: Sun Aug 26, 2012 9:46 am
Location: az

Question about Authorized Users

Postby Marlin » Sun Aug 26, 2012 9:57 am

I have had a credit card through my bank for a while, but got my first rewards card most recently. I ended up receiving the Amex Premier Rewards Gold card.

I noticed that I can have up to 5 authorized cards free of charge and was wondering how those worked in more detail.

As I understand it, they would reward points for me, but do they account towards the $30,000 requirement to get the 15,000 bonus points?

Also do members receive the same benefits as a gold member and access to the Amex website?

Would they have their own login to be able to pay their bills or would they have to pay me, and in turn, I would pay the bills?

Other than creating a spending limit, is there any protection in the event that they were to miss a payment? Would I know when the statement is paid in full, so that I can prevent a missed payment by them?

I am debating on giving my brother a card as an authorized users but I am trying to weigh the pros/cons since we live a few states apart from one another. There may be questions I forgot to ask, so please feel free to provide any other additional information about authorized users.

Thanks


JohnB222
Gold Member
Gold Member
 
Posts: 43
Joined: Mon Sep 05, 2011 9:06 pm
Location: Ohio

Postby JohnB222 » Mon Aug 27, 2012 6:04 pm

Hello Marlin, you are misinterpreting what Authorized User really is. All an authorized user is, is a card link to your account that has their name on it (in case they get asked for ID, etc.) that gets added to your bill. You still pay the bill, they don't get a bill or anything, and if you don't pay for charges you are the one that pays for interest and if you miss a payment you are the one that gets dinged on their credit report. In other words, authorized users should only be people who are making charges on your behalf which you are still paying for. Authorized users are able to get an online account where they can view their charges, maybe even make a payment (although they wouldn't be sent the bill), but sounds to me like this is not what you are looking for...
[font=Arial][CENTER]Amex Blue Cash Everyday - 22k CL | Chase Hyatt - 15k CL

PenFed Platinum Rewards - 12k CL | Chase Sapphire Preferred - 8k CL | Chase Freedom - 5k CL[/CENTER][/font]

Crashem
Centurion Member
Centurion Member
 
Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Tue Aug 28, 2012 12:24 am

JohnB222 wrote:Hello Marlin, you are misinterpreting what Authorized User really is. All an authorized user is, is a card link to your account that has their name on it (in case they get asked for ID, etc.) that gets added to your bill. You still pay the bill, they don't get a bill or anything, and if you don't pay for charges you are the one that pays for interest and if you miss a payment you are the one that gets dinged on their credit report. In other words, authorized users should only be people who are making charges on your behalf which you are still paying for. Authorized users are able to get an online account where they can view their charges, maybe even make a payment (although they wouldn't be sent the bill), but sounds to me like this is not what you are looking for...


John, what you are saying isn't quite right when it comes to American Express. They will actually hold AU users liable for charges made by their AU card. However the Primary card holder is the primary person responsible for payment. Hence, they ask for the AU's SSN number. Additionally the AMEX AU card has a different card number than primary card holder's card number. I'll try to answer the OPs question in next post and you can see further differences.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

Crashem
Centurion Member
Centurion Member
 
Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Tue Aug 28, 2012 12:37 am

Marlin wrote:I have had a credit card through my bank for a while, but got my first rewards card most recently. I ended up receiving the Amex Premier Rewards Gold card.

I noticed that I can have up to 5 authorized cards free of charge and was wondering how those worked in more detail.

As I understand it, they would reward points for me, but do they account towards the $30,000 requirement to get the 15,000 bonus points?

Also do members receive the same benefits as a gold member and access to the Amex website?

Would they have their own login to be able to pay their bills or would they have to pay me, and in turn, I would pay the bills?

Other than creating a spending limit, is there any protection in the event that they were to miss a payment? Would I know when the statement is paid in full, so that I can prevent a missed payment by them?

I am debating on giving my brother a card as an authorized users but I am trying to weigh the pros/cons since we live a few states apart from one another. There may be questions I forgot to ask, so please feel free to provide any other additional information about authorized users.

Thanks


1) As I understand it, they would reward points for me, but do they account towards the $30,000 requirement to get the 15,000 bonus points?

YES

2) Also do members receive the same benefits as a gold member and access to the Amex website?

NO. ACM have a subset of the benefits of primary. Haven't had a gold in years so not sure. Call them. ACM can set up online account with their card which is a different number than primary card holder's number. In fact, I encourage ACM to set up online account.

3) Would they have their own login to be able to pay their bills or would they have to pay me, and in turn, I would pay the bills?

Yes, they can have their own login and add the card. In their account, they can see their charges. Additionally, they can set up bank accounts and pay their own bills. However, the primary card holder is responsible for all bills and lack of payment will first affect the primary card holder's credit and standing with Amex. If primary card holder can not eventually pay, Amex can hold the ACM responsible for payment for their charges that were not paid for. Additionally, primary card holder can set spending limits for each of the ACM cards. However, the spending limit caps are not 100% effective. For example, if merchant puts a hold for 100 dollars, but then runs on that same authorization 150 dollars (restaurant for example), the spending limit cap will only really catch the 100 dollar authorization but not the eventual charge. Also, I heard international merchants can ignore the spending caps. Best way is to set spending caps, but more importantly spending limit alerts so they know what is going on.

4) Other than creating a spending limit, is there any protection in the event that they were to miss a payment? Would I know when the statement is paid in full, so that I can prevent a missed payment by them?

You have to look through the alerts, but I do not think there are many, if any, payment alerts for ACM accounts. Basically up to you to make sure that the bill is paid or primary card holder's credit and standing with Amex will be harmed first. Look through the alerts.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

JohnB222
Gold Member
Gold Member
 
Posts: 43
Joined: Mon Sep 05, 2011 9:06 pm
Location: Ohio

Postby JohnB222 » Wed Aug 29, 2012 7:17 pm

Well, I wouldn't say they will "hold the AU liable for charges" because they have no legal bearing to do so. They may reserve their right to refuse service to that individual in the future if they decide to get their own account or something, possibly, but that is totally different (in my opinion) at least as being "liable for charges." Everything that I said is correct :)
[font=Arial][CENTER]Amex Blue Cash Everyday - 22k CL | Chase Hyatt - 15k CL



PenFed Platinum Rewards - 12k CL | Chase Sapphire Preferred - 8k CL | Chase Freedom - 5k CL[/CENTER][/font]



Return to “American Express”

Who is online

Users browsing this forum: No registered users and 2 guests