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Thread: Do points and miles resources bear some responsibility for point devaluations?
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Old Nov 3, 2013 | 5:29 pm
  #20  
yerffej201
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Originally Posted by Mbcijim10
Two things I'm curios about.

The banks buy the points. Instead of inflating points needed, certainly United could charge Chase more for them. Why inflate instate of charge more?

Also, my guess is United keeps a reserve or escrow account for points issued. They are essentially a currency and U would need to pay for them. If you inflate them all of a sudden you can lower your reserves and the money can come out of escrow and into U's pocket. Wouldn't this be a great way to boost earnings short term?
Cuz chase wouldn't be willing to pay more.
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