Originally Posted by
BHArt
I think you're confusing earning with redemption. If you have several hundred thousand miles, it would be 102,000 miles to charge off the full $1,020 cost (miles can cover a full charge if the miles balance exceeds the 1% cost, $25 increment is waived), you would then receive 5% of redeemed miles back into your account which is 5100 miles. You are correct that you'd earn 2,040 miles for the charge but you'd then have a redemption cost of 102k which would cover the whole thing and you'd get 5,100 back.
Thank you!! So 5% cash back is applied to the
total number of miles used for redemption under the travel category. I was under the impression that only those miles
earned on travel related spending would be eligible, rather than all miles redeemed. This makes much more sense now; thanks again!