What is a welcome bonus?

How does a welcome bonus work?

Chase's Ultimate Rewards agreement for the Ink Business Preferred says the issuer may offer ways to earn bonus points through the programme, such as Refer-a-Business, Shop and Earn or special promotions. The number of bonus points, the duration of the offer, any expiration date and any other terms are disclosed at the time of the offer, and those additional terms become part of the programme agreement. [2]

Bonus points sit on top of the ongoing earning rate. That same agreement gives the Ink Business Preferred 1 point on purchases and 3 points on the first portion of combined purchases in listed rewards categories — shipping, social media and search engine advertising, travel, and internet, cable and phone services — in each account anniversary year, returning to 1 point above the applicable threshold. [2]

Posting follows the billing cycle. Points are earned at the close of each monthly billing cycle, based on the purchases made during it plus any bonus points posted in it, and are generally available at the beginning of the next cycle, although purchases made near the end of a cycle may take one further cycle to become usable. [2]

Which purchases earn points?

Both issuers publish exclusions that decide which transactions post as points, so any minimum spend is only as reliable as the programme's definition of a purchase. [1] [2]

American Express Membership Rewards treats an eligible purchase as a purchase of goods and services on an enrolled card, minus returns and other credits, and excludes cash advances and cash equivalents including gift cards, person-to-person transactions, balance transfers, traveller's checks, purchases and reloads of prepaid cards, fees and interest charges, foreign exchange and account service fees, rewards programme fees, and purchases paid for with points. [1]

Chase applies a comparable test: purchases are products and services minus returns and refunds, and exclude balance transfers, cash advances, cash-like transactions such as traveller's checks, foreign currency, money orders, wire transfers and cryptocurrency, betting transactions, person-to-person money transfers, checks drawn on the account, interest, unauthorised or fraudulent charges, and fees of any kind including an annual fee. [2] Spending by an authorized user counts for the account, because Chase earns points on purchases made with a card by the cardholder or by an authorized user, meaning anyone the account holder permits to use the account, such as employees. [2]

Membership Rewards also links earning to payment behaviour: points are earned on eligible purchases only if American Express receives the minimum amount due on time, and points accrued on a card account during a billing period in which that payment was not made are not earned, though they can later be requested within 12 months of that billing period, subject to a fee for each billing period and each card account. [1]

What turns a bonus into misuse?

Chase's agreement lists examples of misuse that include failing to make the minimum payment when due, buying or selling points, repeatedly opening or otherwise maintaining credit card accounts for the purpose of generating rewards, and manufacturing spend for the purpose of generating rewards. [2] If Chase suspects misuse or fraudulent activity it may temporarily stop the member earning or using points, and the member can start again in the next billing cycle after paying the account current or once the concern is resolved. [2]

American Express also treats manufactured spending as a misuse issue: where it determines that a member has engaged, or attempted to engage, in fraud, abuse, misuse or gaming in connection with earning or using points — including manufacturing spend or otherwise generating point earn on ineligible purchases — it may suspend earning and use, take away points even to a negative balance, and cancel products while forfeiting the points held in the account. [1]

A bonus can also be unwound afterwards. The Membership Rewards terms allow American Express to reverse what they call a points incentive award if it decides the member was ineligible for it, and where the account does not hold enough points to absorb the reversal the balance can turn negative; points earned later are applied to the negative balance first and the member cannot use points until the balance is positive. [1]

Exceptions and limits

• Closing the account. Ultimate Rewards points do not expire while the account is open, but all points are lost immediately if the account status changes or the account is closed for misuse, fraud, failure to comply with other Chase agreements, or a belief that the member may not pay debts on time; points lost this way are not reinstated unless Chase made an error. [2]
• A short grace period. If the account is closed for any other reason, the member has at least 30 days from the closure date to use remaining points, and loses them if they are not used in that window, unless limited or prohibited by law. [2]
• Cancellation by the issuer. American Express says a member loses all points in the rewards account if American Express cancels any product for any reason, including death, insolvency or bankruptcy, although an executor or personal representative may be able to make a one-time redemption; where a card account is cancelled for inactivity, the member has 90 days to use the points. [1]
• Points are not property. Membership Rewards points do not belong to the member and cannot be moved to someone else's rewards account, sold, or passed on through divorce, inheritance or bankruptcy. [1]
• Moving the bonus to an airline. Once points are transferred to a partner loyalty programme the transfer cannot be reversed and the partner's terms apply, and the partner account must be held by the member or by an Additional Card Member whose card was issued at least 90 days before the accounts are linked. [1] [5]

Frequently asked questions

Can a card issuer take back a welcome bonus?

Yes, in defined situations. American Express may reverse a points incentive award it decides the member was not eligible for. Chase may temporarily prohibit the member from using points already earned if it suspects misuse or fraud, and if the account is closed for those reasons the member loses the points, which Chase does not reinstate unless it made an error. [1] [2]

Where do I find the deadline for a welcome offer?

In the offer itself. Chase's agreement says the number of bonus points, the duration of the offer and any expiration date, together with any other terms, are disclosed when the offer is made. [2]

Does spending by an authorized user count?

Under the Ink Business Preferred agreement, points are earned on purchases made with a card by the cardholder or by an authorized user of the account, so an authorized user's purchases form part of the account's purchasing total. [2]

What happens if a spend target is met with manufactured spending?

Both programmes treat manufacturing spend for the purpose of generating rewards as misuse: Chase lists it among examples of misuse, and American Express names it as grounds for removing points and cancelling products. [1] [2]

Do bonus points have their own expiry date?

Under the Ultimate Rewards agreement they follow the account rather than a separate clock: points do not expire while the account is open, but are lost when the account status changes or the account is closed for a listed reason. If the account is closed for another reason, or Chase cancels the programme, the member has at least 30 days to use the points and loses them if they are not used in that window, unless limited or prohibited by law; a closure resulting from death is handled by automatic redemption for cash. [2]

Related pages

Guides: card selection framework, first card application plan. Terms: minimum spend, earning rate, category bonus, authorized user, card annual fee. Browse all glossary terms.

Sources

Sources checked on 18 October 2026. Only the American Express Membership Rewards programme and the Chase Ultimate Rewards programme as documented for the Ink Business Preferred card are covered; welcome offers from other issuers, and airline and hotel loyalty programmes, are not covered here.

1. Membership Rewards Program Terms and Conditions, checked 18 October 2026
2. Ink Business Preferred with Ultimate Rewards Program Agreement, checked 18 October 2026
3. American Express: How do I transfer Membership Rewards points?, checked 18 October 2026