Is Selling Amex Points Legal in Canada?
Many Canadians wonder if selling their Amex Membership Rewards points could get them in legal trouble. This guide separates fact from fiction, explaining the critical difference between breaking laws and violating terms of service.
The Short Answer:
Selling Amex points is NOT illegal in Canada. There is no law against selling your legitimately earned loyalty points. However, it may violate American Express's terms of service—which is a contractual matter between you and Amex, not a criminal issue. The worst realistic outcome is account closure, not legal prosecution.
Understanding the Difference: Laws vs. Terms of Service
This distinction matters enormously and is often misunderstood:
Breaking Laws
- • Enforced by government (police, courts)
- • Can result in fines, criminal record, jail
- • Examples: theft, fraud, tax evasion
- • Requires proof beyond reasonable doubt
Selling points you legitimately earned is NOT in this category.
Violating Terms of Service
- • Enforced by the company (Amex)
- • Can result in account closure, point forfeiture
- • A contract breach, not a crime
- • Civil matter between private parties
Selling Amex points MAY fall into this category.
Key insight: Amex cannot have you arrested or prosecuted for selling points. They can only take action within the bounds of your cardholder agreement—primarily closing your account.
What Amex's Terms Actually Say
American Express Canada's Membership Rewards Terms and Conditions include language prohibiting the sale of points:
"Points have no cash value and may not be sold, transferred for consideration, bartered, or assigned by the participant..."
However, the same terms explicitly permit:
"Transfer of points to participating airline and hotel partners..."
This creates a significant gray area. When you transfer points to Aeroplan (a permitted action), and then someone pays you for those Aeroplan points (a separate transaction), you've technically followed Amex's rules for the transfer. The subsequent sale happens outside Amex's ecosystem.
How Point Selling Actually Works (And Why Amex Can't See It)
Understanding the process clarifies why enforcement is practically impossible:
You transfer MR to Aeroplan
This is explicitly permitted by Amex's terms. The transfer is instant and 1:1. From Amex's perspective, this is a normal, approved transaction.
Points arrive in your Aeroplan account
Now they're Aeroplan points, subject to Aeroplan's terms—not Amex's. The points have left Amex's system entirely.
You use Aeroplan Family Sharing to transfer points
Aeroplan's Family Sharing feature allows transfers between accounts. This is an Aeroplan feature—Amex has no visibility.
You receive payment via Interac e-Transfer
This financial transaction happens between you and the broker. Amex has no knowledge or involvement. It's a private Canadian banking transaction.
The Visibility Gap:
Amex sees: "Customer transferred 100,000 MR to Aeroplan" (permitted)
Amex does NOT see: The subsequent cash payment or who received the points
Realistic Risks of Selling Amex Points
Let's be honest about what could happen:
Possible: Account Closure
If Amex suspects point selling (usually from unusual patterns like repeated large transfers to the same partner), they could close your account. This is rare but possible. Remaining points would be forfeited.
Possible: Loss of Card Benefits
Account closure means losing Platinum/Gold benefits, travel insurance, and any pending credits. This matters if you intended to keep the card.
Extremely Unlikely: Legal Action
Amex has never sued individual Canadian cardholders for point selling. The legal costs far exceed any damages, and proving a "sale" versus a "gift" to a family member is nearly impossible.
Impossible: Criminal Prosecution
There is no Canadian law against selling loyalty points. You cannot be arrested, fined by the government, or receive a criminal record for selling your own legitimately earned points.
Minimizing Your Risk
If you decide to sell your Amex points, these practices reduce exposure:
Sell when cancelling: If you're closing your Amex card anyway, there's zero downside to selling points first. You can't lose a card you're already cancelling.
Avoid suspicious patterns: Don't make repeated large transfers in short periods. Spread transactions over time if selling large balances.
Use reputable brokers: Established Canadian brokers (like us) have processes that minimize detection risk. Avoid dealing with unknown individuals online.
Keep reasonable amounts: Selling 50,000-200,000 points attracts far less scrutiny than selling millions of points repeatedly.
The Bottom Line
Selling Amex Membership Rewards points is not illegal in Canada. It's a contractual matter between you and American Express—not a criminal issue.
Millions of dollars in loyalty points are bought and sold in Canada every year. The industry exists because the practical risks are manageable, especially for people selling reasonable amounts or those already planning to close their accounts.
If you're concerned about risk, ask yourself: Are you keeping the card? If yes, weigh the value of keeping it against the cash you'd receive. If no, you have nothing to lose—sell your points before cancelling and convert that value to cash.
Frequently Asked Questions
Is selling Amex points illegal in Canada?
No. Selling Amex Membership Rewards points is not a criminal offense in Canada. There is no federal or provincial law prohibiting the sale of loyalty points. However, it may violate American Express's terms of service, which is a contractual matter—not a legal one.
Can I go to jail for selling Amex points?
No. Selling your legitimately earned loyalty points is not a crime. The worst-case scenario is American Express closing your account and forfeiting remaining points—a contractual penalty, not a legal one. Fraud (like selling points you don't own) is different and can have legal consequences.
Will Amex close my account if I sell points?
It's possible but rare. When you transfer points to an airline partner like Aeroplan, Amex sees a legitimate transfer—not a sale. They cannot track what happens to points after they leave your account. Account closures for point selling are uncommon and typically involve suspicious patterns or very large volumes.
What does Amex's terms of service actually say about selling points?
American Express's Membership Rewards Terms prohibit selling, bartering, or transferring points for consideration (money). However, transferring points to airline partners is explicitly permitted. The "sale" happens after the transfer, outside Amex's view.
Is there any legal precedent for Amex suing point sellers?
No. American Express has never sued individual cardholders for selling points in Canada. Their enforcement is limited to account closure and point forfeiture—contractual remedies, not legal action. The cost of litigation far exceeds any damages from individual point sales.
Should I worry about selling my Amex points?
For most Canadians selling modest amounts (under 500,000 points), the practical risk is very low. The transfer to Aeroplan or another partner is legitimate, and Amex cannot see the subsequent cash transaction. If you're cancelling your card anyway, you have nothing to lose.
Disclaimer:
This article provides general information about loyalty points and is not legal advice. American Express's terms of service may change. If you have specific legal concerns, consult a qualified Canadian lawyer. Mega Miles Broker operates as a points brokerage and does not provide legal counsel.