Go Back  FlyerTalk Forums > Miles&Points > Information Desk
Reload this Page >

Mileage/Award Ticket Brokers: Are they legit? [consolidated]

Community
Wiki Posts
Search
Old Feb 23, 2015, 11:33 pm
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: aBroadAbroad
Please read this wiki before posting questions or comments.
Are they legit? Short answer: No

Virtually all award programs prohibit the sale, barter and purchase of awards and/or miles (except through channels specifically identified in the program T&C and/or endorsed by the program). Many airlines are known to audit their FFPs for such fraudulent transactions, and to aggressively enforce their programs' rules.

By definition, so-called "mileage" brokers are not legitimate. It is important to understand that they do not actually broker miles, but rather act as a middle-man to facilitate the purchase of award tickets. The seller redeems miles from his/her account for an award in a buyer's name. The broker pays the seller on behalf of the buyer. A clear audit trail is left in the process.

Consequences

If this activity is identified by the airline, the seller will lose any miles remaining in his/her account, the account will be terminated, and the seller will be banned from participating in that airline's program. The seller may also be subject to payment of monetary damages. Buyers, when attempting to travel on a purchased award, may be denied boarding at any point on the itinerary. At best, a special trip might not happen. At worst, the buyer might be stranded halfway around the world and forced to purchase a significantly more expensive one-way ticket in order to get home.




Moderator Note

Please be reminded that FlyerTalk Rules prohibit posts that support, encourage or promote fraudulent activities against individuals or companies.
Posts naming specific mileage brokers and/or containing links to broker websites
may be redacted or deleted.
Print Wikipost

Mileage/Award Ticket Brokers: Are they legit? [consolidated]

Thread Tools
 
Search this Thread
 
Old Sep 19, 2013, 10:15 pm
  #61  
 
Join Date: Jan 2005
Location: San Diego
Programs: Marriott Rewards Silver Elite, AA Lifetime Plat 4.5M, DL Medallion Lifetime Silver, DL MillionMiler
Posts: 1,263
Not so fast there Capt. Quigg. Arrange a personal meeting with you minister, rabbi, priest or oman and see if they would not like to have the miles as a personal donation for church business. They may be willing to put something in writing that would satisfy the IRS and do some good within that religious entity. As long as the arrangement is done "in full faith" I don't think the IRS will bother you unless it's an "unreasonable' amount of moula.
maltasr is offline  
Old Sep 20, 2013, 7:30 am
  #62  
FlyerTalk Evangelist
 
Join Date: Mar 2005
Location: 60137
Posts: 10,498
Originally Posted by maltasr
Not so fast there Capt. Quigg. Arrange a personal meeting with you minister, rabbi, priest or oman and see if they would not like to have the miles as a personal donation for church business. They may be willing to put something in writing that would satisfy the IRS and do some good within that religious entity. As long as the arrangement is done "in full faith" I don't think the IRS will bother you unless it's an "unreasonable' amount of moula.
1) Zero tax basis.

2) What's the penalty for practicing tax law without a license?
sonofzeus is offline  
Old Sep 20, 2013, 11:57 am
  #63  
 
Join Date: Jan 2005
Location: San Diego
Programs: Marriott Rewards Silver Elite, AA Lifetime Plat 4.5M, DL Medallion Lifetime Silver, DL MillionMiler
Posts: 1,263
Last I heard, there is no penalty for offering a fellow citizen tax ADVICE or OPINION. We're not talking Lehman Brothers here.
maltasr is offline  
Old Sep 27, 2013, 8:32 am
  #64  
 
Join Date: Aug 2013
Location: EWR --> WAW
Posts: 111
Hey guys,

Is there a way to trade miles? For example, is it possible to trade AA miles for United miles? Or do you simply have to sell them? Going to have 100k AA miles and am not worried about them closing my account if I sell or trade them. Thanks!
rust1d is offline  
Old Sep 27, 2013, 10:51 am
  #65  
 
Join Date: May 2003
Location: CA
Programs: AA Lifetime Gold, HHonors Diamond
Posts: 2,879
Originally Posted by rust1d
Hey guys,

Is there a way to trade miles? For example, is it possible to trade AA miles for United miles? Or do you simply have to sell them? Going to have 100k AA miles and am not worried about them closing my account if I sell or trade them. Thanks!
It is not only the possibility of closing your account but the possibility that UA will meet the person who is using your miles at the gate and request they pay full fare for the ticket. Not a nice thing to have happen.
deant is offline  
Old Sep 27, 2013, 11:34 am
  #66  
mia
Moderator
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Originally Posted by rust1d
... possible to trade AA miles for United miles?!
It is not possible to trade or sell miles. When you "sell" miles to a broker you actually redeem an award from your mileage account in the name of the broker's customer. There is a direct audit trail from the award ticket to your account.
mia is offline  
Old Sep 27, 2013, 11:44 am
  #67  
 
Join Date: Aug 2013
Location: EWR --> WAW
Posts: 111
TBH I am not worried about them closing my account since I would cancel the cards anyway once the miles were sold.
rust1d is offline  
Old Sep 27, 2013, 3:25 pm
  #68  
 
Join Date: May 2003
Location: CA
Programs: AA Lifetime Gold, HHonors Diamond
Posts: 2,879
Originally Posted by rust1d
TBH I am not worried about them closing my account since I would cancel the cards anyway once the miles were sold.
Do you ever want to earn miles in the future in that program? If you get caught, you may never be allowed to.
deant is offline  
Old Sep 27, 2013, 5:14 pm
  #69  
mia
Moderator
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Originally Posted by rust1d
...I would cancel the cards anyway once the miles were sold.
This has nothing to do with credit cards, but rather with your AA or UA frequent flyer account.
mia is offline  
Old Sep 27, 2013, 6:02 pm
  #70  
FlyerTalk Evangelist
 
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,176
Originally Posted by rust1d
Hey guys,

Is there a way to trade miles? For example, is it possible to trade AA miles for United miles? Or do you simply have to sell them? Going to have 100k AA miles and am not worried about them closing my account if I sell or trade them. Thanks!
Would not sell or barter with a broker.

The best thing to do is find a trusted friend/associate/relative who has the kind of points you want. You book him a ticket and he books you one. These transactions of course do not have to be simultaneous.

If ever questioned, say your friend/associate/relative gave you the ticket. This is legit.

Going to Flyertalk events is a good way to meet people to trade with. Always better to eyeball the other guy.
toomanybooks is offline  
Old Sep 29, 2013, 1:29 am
  #71  
 
Join Date: Jun 2013
Location: YVR
Programs: TK Gold, Alitalia Gold, AB Gold, MPC, SPG Gold, IHG, Marriott Silvr, BW Plat, AA, BA, JP
Posts: 244
Originally Posted by rust1d
Hey guys,

Is there a way to trade miles? For example, is it possible to trade AA miles for United miles? Or do you simply have to sell them? Going to have 100k AA miles and am not worried about them closing my account if I sell or trade them. Thanks!
Well it IS possible to trade or exchange AA & UA thru points.com Legally......do you want to do that or not considering the devaluation....that may be upto you.
sunnyzip is offline  
Old Sep 29, 2013, 10:20 am
  #72  
 
Join Date: Aug 2011
Programs: UA PS, AA GLD, SPG GLD, PC PLT, CC GLD
Posts: 217
Points.com is atrocious to the point it shouldn't even be mentioned unless you're in the straits of desperation.
LordByran is offline  
Old Sep 30, 2013, 8:32 am
  #73  
 
Join Date: Aug 2013
Location: EWR --> WAW
Posts: 111
I originally signed up for the AA bonus because I thought I may use them for a trip, however, I still need to cover my trip to Poland next Summer and need UA miles more than AA, which is why I was asking about trading them.

I never travel domestically, so I would not be sad if I could not earn miles though AA, and it is not like I am doing this all of the time, this is just a one time thing.

Instead of selling miles, couldn't I just book an award with the broker and have them pay me?
rust1d is offline  
Old Sep 30, 2013, 8:40 am
  #74  
 
Join Date: Nov 2008
Location: Home Airports: CAE/CLT
Programs: Hyatt Globalist, National Executive
Posts: 5,452
Brilliant.
Except now that I have thought about it for a fraction of a second they will charge you a higher price to make the booking than they will pay you for batering your miles.

That plus all the potential ugliness mentioned upstream.
Gamecock is offline  
Old Sep 30, 2013, 2:40 pm
  #75  
 
Join Date: Dec 2000
Location: Charleston, SC, USA
Programs: Avis Pref+, Hyatt Explorist, Marriott Life Gold, Honors Silver, IHG Plat via MC.
Posts: 6,786
You'd be best off to find a "friend"/ colleague/ client who has so many UA miles & needs to use AA miles, then book for each other & leave the brokers out of it.
Brendan is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.