NY Bill Grants Rewards Grace Period for Credit Card Points

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Last updated on February 9th, 2024

A new bill in New York is giving credit cardholders a more substantial grace period in which to use rewards points. Here’s what you need to know about N.Y. Senate Bill S7104A and the new 90-day credit card rewards grace period.

90-Day Grace Period for Rewards Redemption

The New York Senate passed new legislation giving cardholders 90 days to redeem rewards after closing an account. The bill, introduced by N.Y. State Senate Democrats, received unanimous approval in a Consumer Protection Committee vote on July 20, 2020.

The bill, Senate Bill S7104A, provides a grace period on rewards points when an account is, “modified, canceled, closed or terminated; ninety days shall be provided for the use of such points from the date notice of modification, cancellation, or termination of the card is provided.”

Misuse and Fraud Prohibited

Importantly, the bill stipulates that the new 90-day grace period does not apply in instances of:

  • Fraud with the credit card account, or
  • Misuse of the credit card account or rewards program.

The latter restrictions on the grace period help protect the credit card industry from unscrupulous cardholders seeking to exploit loopholes. Both Chase and American Express have had issues with self-referrals and misuse of their rewards problems recently, with Chase eliminating bonuses for those caught red-handed.

American Airlines has also been canceling members’ accounts that are guilty of violating the terms of use of their AAdvantage frequent flyer program.

Will the New Law Hurt N.Y. Consumers?

How these new provisions will impact credit cardholders in New York remains to be seen. While many banks and card issuers already provide a grace period for redeeming points or miles, not all do. It’s unlikely the new bill will cause issues for New Yorkers due to the market size of the Empire State. The language explicitly preventing misuse will also stop issuers from targeting law-abiding cardholders.


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About: Cory Santos
Cory Santos

Cory is the senior credit card editor at BestCards, specializing in everything credit card-related. He’s worked extensively with credit cards and other personal finance topics, including nearly five years at BestCards. Cory’s extensive knowledge is an essential part of the BestCards experience, helping readers to live their best financial lives with up-to-date insights and comprehensive coverage of all facets of the credit card space, including market trends, rewards guides, credit advice, and comprehensive credit card reviews.

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