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Thread: Miles or Cashback Programs
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Old May 4, 2010 | 8:19 pm
  #5  
mia
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Originally Posted by jbcarioca
Because they buy points wholesale generally cash back will be a better deal than will points.
We're looking at the same data, but we're not reaching the same conclusion. If a card issuer budgets, say, 1.5% of transactions for rewards they can award $0.015 per dollar -or- they can buy airline miles which I can redeem for about $0.0225 of air travel. The extra value represents the spread between the wholesale cost of the miles and the retail price of the otherwise unsold airline seat or hotel room.
Last edited by mia; May 5, 2010 at 8:39 am Reason: Spelling
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