Confirmed? American Express is killing the golden Delta goose

I wrote back in February that I was concerned the unbonused manufactured spend I put on my Delta Platinum Business credit card wasn't counting towards my annual Medallion Qualification Dollar waiver, but that since it still appeared properly on my statement I hoped it would at least still earn me a "Miles Boost" of 10,000 Medallion Qualification Miles and 10,000 SkyMiles.

It didn't.

Avoid Simon Malls if you're chasing Amex high spend bonuses

I manufacture most of my unbonused spend at a local Simon Malls location, and obviously American Express has flagged Simon Malls as a merchant where people were buying PIN-enabled prepaid Visa debit cards.

While Simon Malls aren't a bonused merchant with any cards I know of, the activation costs are low enough that it's potentially worth manufacturing spend there with cards that offer a decent return on all spend.

For me, that included the Delta Platinum American Express card, not because 1.4 Delta SkyMiles were worth more than 1.5 Ultimate Rewards points, or 2 cents, but because the Medallion Qualification Dollar waiver and bonus Medallion Qualification Miles made it close enough that I was willing to play along.

While my grocery store spend is still working to trigger the high spend bonuses on my Hilton Honors Ascend card, and so I presume would also trigger Miles Boost with the Delta card, that's a totally unreasonable tradeoff since the spend on the first is bonused and on the second unbonused.

An unreliable card is worse than a bad card

There are still options for manufacturing unbonused spend that may still work to trigger the high spend requirements on American Express cards, like and, but the problem is that once a company starts targeting obviously manufactured spend, there's no telling where they'll stop.

I was happy to take this chance for the edification of my readers, but you can't build a strategy around praying that a merchant will keep working long enough for you to meet a spend threshold. If you put $25,000 on a Delta Reserve card before the axe falls on your preferred merchant, there's no partial credit; you've wasted the entire $25,000 in spend that could have been put on a more lucrative card.

If reselling is the future, the future is getting closer

I'm not a reseller, except for the occasional stunt or proof of concept, but that's not because I don't think reselling is an important or useful strategy. It's just a strategy for rich folks with garages, and I'm poor and live in an apartment, so have neither the float nor the storage capacity to process the kinds of volume heavy hitters deal in.

Besides its favorable cost structure, the other obvious advantage of reselling in this context is that a reseller's purchases are of actual merchandise from real merchants. That makes unbonused, high-spend opportunities like the Delta American Express cards easy to meet with purchases that have no chance of being flagged as "cash equivalents" or the like.


I find American Express's situation peculiar.

First off, cardholders pay an annual fee, $195 in the case of the Delta Platinum card or $450 for the Delta Reserve. Then merchants pay an additional fee based on the transactions made with the card. Then if the customer doesn't pay their bill off in full each month, they also pay additional interest charges on their balance.

Meanwhile, American Express pays some amount for the SkyMiles they tell Delta to award to customers, plus perhaps an additional bounty when customers trigger their annual high spend thresholds. And, of course, American Express bears the risk of customer defaults on outstanding balances.

It seems to me there are three logical possibilities: either American Express is so bad at negotiating that they are paying more for the SkyMiles awarded on spend than they are earning on that same spend, or they think manufactured spend materially increases the likelihood of default, or both.

Then, of course, there's the illogical possibility: that American Express is making plenty of money off manufactured spend but is cutting off its nose to spite its face anyway.