In the interest of full disclosure, OMAAT earns a referral bonus for anyone that’s approved through some of the below links. These are the best publicly available offers (terms apply) that we have found for each product or service. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, hotel chain, or product manufacturer/service provider, and have not been reviewed, approved or otherwise endorsed by any of these entities. Please check out our advertiser policy for further details about our partners, and thanks for your support!Link: Maximize Amex Pay With Points flight bookings with the American Express® Business Gold Card and Business Platinum Card® from American ExpressThere are several excellent cards earning Amex Membership Rewards points. In general I think the best way to redeem these points is to transfer them to Amex’s airline partners, so you can get outsized value for premium redemptions.That’s not the only option, though. Amex also has the Pay With Points program, which is another popular way to redeem points, which may prove practical for a lot more people. In this post I wanted to take a closer look at how that works.What is Amex Pay With Points?Using Amex Pay With Points for flightsGet up to 1.54 cents with Amex Pay With PointsTip: Stack Amex Pay With Points & Insider FaresIs Amex Pay With Points for flights worth it?Bottom lineWhat is Amex Pay With Points?The Amex Pay With Points program essentially lets you directly redeem your points toward purchases. The value is fixed depending on what you’re looking to redeem for, and the value ranges from very bad to potentially pretty decent, if you know what you’re doing.Just to give some examples of redemption rates you can expect through Amex Pay With Points:Amex points can generally be redeemed for 0.6 cents each toward credit card chargesAmex points can generally be redeemed for 0.5-0.7 cents each toward gift card purchasesAmex points can generally be redeemed for 0.7-0.85 cents each toward rental car and hotel purchases through Amex TravelAmex points can generally be redeemed for 1.0 cents each toward airfare purchases through Amex TravelAs you can see, the value there varies significantly. For context, I value Amex Membership Rewards points at 1.7 cents each, and that’s thanks to the ability to transfer Amex points to partner airlines, where you can book very expensive first & business class tickets at a reasonable cost with points.I do think there are circumstances where it can make sense to use Amex Pay With Points, but please don’t use points to wipe out charges or for gift cards, because you shouldn’t settle for just 0.7 cents of value per point. Rather the potential value comes from using Amex points toward airfare purchases, as you can do much better than I’ve outlined above.The best Amex Pay With Points option is for airfare purchasesUsing Amex Pay With Points for flightsIf you are going to use Amex points as cash toward a purchase, you’ll get the most value using your points toward the cost of flights, since each point can be redeemed for one cent (or more, as I’ll discuss below).If you’re going to use this option, there are a few general things to be aware of:You must book your airline ticket through Amex Travel (even International Airline Program bookings qualify)When you book your flight, the full dollar amount of the flight will be charged to your Amex card, and then a corresponding credit will be applied to your account within 48 hours, reflecting that you redeemed points for the purchaseYou can use Amex Pay With Points to partially pay for an airline ticket, though you need to redeem a minimum of 5,000 Amex pointsIf you cancel a flight, you’ll receive a statement credit — if you want Amex points returned to your account, you can contact Membership Rewards to have that doneFor all practical purposes Amex Pay With Points bookings are “paid” tickets as far as airlines are concerned, so flights should be eligible for mileage accrual, and should count toward elite statusAmex Pay With Points allows you to book any seatGet up to 1.54 cents with Amex Pay With PointsIf you’re looking to maximize points, getting 1.0 cents of value per Membership Rewards points probably doesn’t sound exciting. But that’s where two business cards come in handy. Specifically:Now, there are some things to be aware of:This rebate only applies when booking first or business class travel, or economy travel on your designated US airline (you can designate an airline in your Amex account)You can pool your Amex points across all cards and redeem at these rates, assuming you have one of the above cardsWith this redemption option, the Amex Business Gold offers up to 250K points in rebates per year, and the Amex Business Platinum offers up to 500K points in rebates per yearYou need to have the full Amex points for the redemption upfront (based on the rate of one cent per point), and then the 25-35% points rebate will post to your account within 6-10 weeksAmex Pay With Points works for first class on all airlinesJust to break down the math here, say you want to use Pay With Points for a $487 JetBlue Mint (business class) flight from Boston to Seattle:Regardless of which Amex Membership Rewards points card you have, you’d need to pay 48,690 Amex points for that flightIf you had the Amex Business Gold you’d receive a rebate of 12,173 points after the fact (meaning you’d pay 36,517 points in the end), while if you had the Amex Business Platinum you’d receive a rebate of 17,042 points after the fact (meaning you’d pay 31,648 points in the end)A JetBlue Mint flight through Amex TravelTip: Stack Amex Pay With Points & Insider FaresThere’s another trick that can get you even more value. Amex has Insider Fares, which are essentially discounted fares on a variety of airlines. The discounts vary, and in some cases they’re substantial, while in other cases there are no savings.This is available to anyone with an Amex card earning Membership Rewards points, and the Insider Fares will show up as long as you have enough points to cover the entire cost of your ticket. What’s awesome here is that you can stack these opportunities.In other words, you could get a discounted ticket through the Insider Fares program, and then you could use the 35% Pay With Points rebate on top of that.As an example, take an Insider Fare from Los Angeles to Maui in Alaska Airlines first class. The standard fare would be $599 (which would require 59,900 Amex points), while the Insider Fare lowers the cost to 54,165 points (the equivalent of $542 worth of airfare).In addition to the already discounted pricing, if you had the Amex Business Gold you’d receive a rebate of 13,541 points after the fact (meaning you’d pay 40,624 points in the end), while if you had the Amex Business Platinum you’d receive a rebate of 18,958 points after the fact (meaning you’d pay 35,207 points in the end).An Alaska Airlines Insider Fare through Amex TravelRedeeming 35,207 points for a flight that would cost $599 is quite a good value, as that’s the equivalent of getting around 1.7 cents of value per mile.Is Amex Pay With Points for flights worth it?There’s often a tough balance between maximizing your rewards points for the best value, and just using them for what’s practical. So while there’s no “one size fits all” answer as to whether or not Pay With Points is worth it, here are some general thoughts:Please don’t redeem your Amex points for less than a penny each toward statement credits, gift cards, etc., because that’s a terrible use of pointsPersonally I’d try to avoid redeeming Amex points for one cent each toward airfare, since that’s still on the very low end of Amex points redemptionsAmex Pay With Points can be a fairly decent deal with the American Express® Business Gold Card (where you can get 1.33 cents of value per point), and I’d say it can become a very good deal with the Business Platinum Card® from American Express (where you can get 1.54 cents of value per point)If you’re going to make a Pay With Points redemption, it could be worth picking up the Amex Business Gold or Amex Business Platinum just for that, since all your points will suddenly get that higher valuePay With Points can become a better value if you can book an Insider Fare, or if you’re going for elite status, and value the elite miles you’re getting by booking a “paid” ticket compared to an award ticketPay With Points can be a great option in situations where award availability is decent, but paid fares are good; for example, business class flights to Hawaii are often expensive when redeeming points, but reasonable in cash, making Pay With Points a great optionI can’t emphasize enough that this is an especially popular redemption option with those chasing status, since these Amex Pay With Points flights are considered the same as any other paid fare when it comes to elite status qualification.Amex Pay With Points has some good uses for flightsBottom lineAmex Pay With Points allows you to redeem points at a fixed rate toward a variety of purchases. The best value comes with using Pay With Points for flights, since you’ll get a minimum of one cent of value per point.Amex Pay With Points for flights starts to really become valuable if you have the American Express® Business Gold Card or the Business Platinum Card® from American Express, in which case you can get a 25-35% rebate on these bookings, getting you up to 1.54 cents of value per point.Personally I still prefer to transfer my Amex points to travel partners for first & business class award redemptions, but for some people this could be worthwhile.To those with Amex points, how do you feel about the Pay With Points program? Have you ever used it for flights?