American Express balance transfers glitch: what you need to know

American Express customers looking to shift debt onto a 0% balance transfer deal could be blocked thanks to a little-known technical problem. Here’s what to watch out for.

A technical glitch means American Express customers trying to move their balances to a 0% balance transfer credit card might be rejected.

American Express rewards cards have seen their popularity soar in recent years, thanks in part to their partnership with the likes of British Airways and Nectar.

However, the credit cards rarely come with any 0% introductory period on purchases or balance transfers and tend to charge hefty APRs if not paid off in full each month.

So, a smart move for American Express cardholders who have racked up substantial debt is to shift it to another provider offering a 0% balance transfer deal.

But a little-known incompatibility between American Express and some card providers’ platforms means the transfer could fail and leave you lumbered with a 0% balance transfer card you can't use.

My balance transfer nightmare

I recently applied for a Sainsbury’s 0% Balance Transfer card to move my American Express balance. I was accepted, and upon receiving the card in the post I called Sainsbury’s Bank to transfer my debt.

It seemed like everything was in order until I read out my American Express card number to the customer service operator. He was quiet for one moment then told me that the balance transfer had failed and that Sainsbury’s Bank would not be able to carry out the payment, because of a ‘technical glitch’.

He informed me that Sainsbury’s Bank and American Express worked on different, incompatible platforms and stated there was nothing more he could do.

I was left with a useless card that was expensive to use for anything else apart from balance transfers. It still left me stuck with a balance, and no way to transfer it. On top of it, I had a new mark on my credit rating.

I had no option but to cancel the Sainsbury’s Bank card on the spot and look for alternatives.

What’s the problem?

The majority of UK card providers issue cards with 16-digit numbers, while American Express cards are issued with 15 digits only, on the front of the card.

Because American Express cards are still less common than MasterCard or Visa cards, some computer systems and payment platforms are designed to expect 16 digits as standard. 

As a result, when 15 digits are entered into the system, it can reject the balance transfer on the basis that it simply does not accept the card.

What Sainsbury’s Bank says

Sainsbury’s Bank admitted to loveMONEY that there is occasionally a problem with American Express cards, and referred me to their ‘Exclusions’ page online which does indeed say that Sainsbury’s Bank “may not be able to process balance transfers from some providers”, but does not explain why.

A spokesperson for Sainsbury’s Bank told me, that there could indeed be an issue but refused to elaborate on what the technical difficulty is, because “Sainsbury’s Bank are working to fix it”.

Confusingly, American Express told me that there shouldn’t be an issue.

What to do if you have American Express card debt to transfer

If you’ve got debt on an American Express credit and want to shift the balance be cautious about where you apply and make sure they can facilitate a transfer. 

Some providers like Tesco Bank, Post Office and Nationwide have platforms that are set up for American Express balance transfers according to the research by Balance Transfer Expert.

To be sure, try ringing up the provider and double checking they can perform balance transfers from American Express cards.

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