Some interesting facts about reward points or mileage points…

My first attempt to do something with my mileage points outside of flying was to gift them to my sister but when I went to do so, the mileage plan said it would cost $15 per thousand points to transfer them. So I went to the “buy points” page and there it said it would cost $15 per thousand points to buy them. It would cost me just as much to transfer my points and to buy what I needed for a free flight? How is that a gift?

Therefore, I decided to buy my mom some flowers with the points. The bouquet would cost $39.99 if I paid cash. Then surprise, even though there was an FTD store in the town where she lived I was charged $29.99 for delivery by Fed Ex or UPS. What??? Cash price on the flowers, $70. If I bought them I would receive 1,500 mileage points. But since I was redeeming points, it was 8,000 points; 8k x $15 = $120.00!! My $40 flowers are now, not $70, but $120.

I was thinking about this in relation to my credit card rewards points. My credit card rewards now says, “Whatever the price of the ticket, use your rewards points x 100,” that is, a $250 ticket uses 25,000 reward points. But if I take those points and multiply by what the airline charges for make-up or gift points, $15, that means the trip just cost (someone) $375.

And you thought you were taking a FREE trip. But the merchant you used your card with actually paid for that ticket for you. I know because I’ve seen the merchant’s costs for accepting credit cards. I wonder how much s/he is charged for each point. (Is this statement a question?) Although, your argument might be that you paid for it with the high credit card interest rate you’re paying.

It seems to me that the airlines and the credit card companies are making out really well on these reward points/miles.