Well, I value membership reward points at approximately 1.5-2.5 cents each figuring approximately 2 cents per point. The reason I say this is whenever I travel usually on USairways I can redeem my points to the carribbean like Aruba for 30,000 miles and that airfare alone is usually 600-800 whenever I book. Also, with southwest's no restriction policy except a couple blackout dates the flights I usually want are anywhere from 250 - 400 roundtrip so once again in the 1.5 - 2.5 cents per point range.

I agree with the other poster though that amex should offer more to redeem the points for cash or to charities as it doesn't make sense why other merchants can offer cards with 1% cash back all the time or even 1% cashback plus 1% to your favorite charity for no annual fee and Amex can only manage to give those in the membership rewards program .5 cents per point. I mean even MBNA with their worldpoints program can give a full 1% cash back if you redeem enough points.

I reallly think American Express could use to revamp their membership rewards program offering better conversion ratios on a lot of things (cash, hotel chains) and increasing the number of airlines they offer. It seems like the program has become more and more diluted over the years and as much as love my Preferred Rewards Green Card it seems like Diner's Club is becoming a much better option these days with them now becoming a co-branded mastercard.

Sincerely,

JC