Phosphoric acid and phosphoric acid doped polymer membranes are widely used as electrolytes in hydrogen based fuel cells operating at elevated temperatures. Such electrolytes have been explored for direct oxidation of methanol to further increase the versatility of the systems, however, with demonstrated lifetimes of only a few days to weeks. In this work the methyl phosphate formation from the acid and methanol is identified and proposed to be a major mechanism for the cell degradation. Proton conductivity and fuel cell durability tests validate the mechanism at high methanol contents.