Chat rooms went WILD yesterday since AMEX shut down a few dozen folks. Let’s recap what we know and what we don’t know from the data points (I’m hearing about 1-2 dozen shutdowns out of maybe 1K people so it’s not even as bad as the AA shutdowns.)
PPK – this is NOT the cause of shutdown. Just using it would have wiped out everyone. Plus you could have had legit PPK usage. I don’t think Amex was footing this bill so they prob DGAF.
3X referrals – this isn’t it either because once again everyone would be wiped. How about if you went REALLY hard? Well AMEX would just freeze your MR or FR you instead of just axing you.
Combo of PPK and 3X – not this either because once again a lot of ppl would be gone.
Plastiq – everyone that got wiped used Plastiq. So who or what were they paying? Lots of folks who paid mortgages were fine. However it seems that the folks who paid Amex using PPK backed by their own Amex is what did them in.
If anyone survived but did that or if anyone got shut down that didn’t do that, let me know.
So what’s the lesson learned? ALWAYS use a P2 or an intermediary step. While it’s nice and convenient to name that tune in 2 notes, it’s just asking for trouble. Kind of like when people were self referring. I guess AMEX didn’t like seeing a $3K charge from Plastiq and then seeing a $3K Plastiq check a week later. It’s odd because they didn’t seem to have issues with this in the past.
I think eventually they’re going to start looking at same household shenanigans so you better use a P3 at a different address in the future.
Correct the issue was using PPK as the middle man which allowed for payments not allowed to go on an Amex via Plastiq. Amex didn’t appreciate the consumer creativity to work around their rules. Especially HELOCs where you could basically endlessly draw against the line of credit, and pay it back in one big circle.
Only paid HELOC and was shutdown.
That’s the first I’ve heard. Sorry.