FlyerTalk Forums - View Single Post - Help we with the economics of points/miles
Old Aug 3, 2010 | 8:57 pm
  #9  
hindukid
 
Join Date: Jul 2001
Location: Chicago
Posts: 2,682
Originally Posted by mahasamatman
Where does that number come from? I'd never imagine it to be even close to that.
I'd guess that it is in the low one cent range. Why do you think it would be less than that? I'd guess the airline miles are around one cent and that SPG is probably a bit more. Otherwise SPG would probably lose a bunch to those who transfer points.

Most cashback cards are 1% so I am betting that in a competitive market those issuing miles are also spending in the 1% area.
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