I just read a Washington Post article that said credit card companies are changing redemptions. It said Citi is changing redemption to 40k miles for domestic flights effective September 1. But the credit card companies don't decide the redemption values -- it's the airlines, correct? What's this all about?

I'm not myself today so I will forgo the sarcasm. The AAdvantage program is miles-based, not points-based. It seems pretty clear that this change applies only to Citi's non-AA cards that offer points convertible to a cash value applicable to a ticket purchase on any airline.

"A $400 ticket now requires 40,000 points (up from 20,000)."

http://www.washingtonpost.com/wp-dyn...1500042_2.html

Yes it is confusing because there are three types of "mileage" credit cards.

Type 1 is a card valid for a single airline's type of miles and offered by direct agreement between the bank and the airline. The bank buys the miles and awards them to the customers. The citi AAdvantage cards and the Delta SkyMiles Amex card are examples. If the name of the program is in the name of the card, it is this type. Redeeming your miles is between you and the airline; the card issuer never knows or cares.

Type 2 is a card intended to allow mileage earning in multiple programs. The card banks points which you can exchange directly for miles with participating airlines. Examples of these are Amex's Membership Rewards cards, the Diners Club mastercard, and the Amex Starwood Card (you earn Starwood points, but they are exchangeable at very favorable rates for many types of miles). Again, the issuing bank has agreements with airlines to purchase ff miles for your account. Redeeming your miles is between you and the airline; the card issuer never knows or cares.

Type 3 is the type you are reading about. The bank offers points in a "reward" program that may or may not have a mileage component to it as well as a spending component. When you redeem points at levels the bank specifies, the bank then goes out and purchases a ticket from the airlines on your behalf. The airline does not know or care that these are "award" tickets, since miles never pass through the airline's ff program. Examples are Citi's ThankYou points cards, Discover's travel/miles cards, etc. With Citi's ThankYou, you log on to Expedia, choose a ticket, and Citi tells you how many points they want in order to buy it for you.

+1

Given this is not about the AAdvantage FFP or American Airlines, but rather seems to be about cards with their own points scheme and redemption for airline tickets, etc. this discussion will be moved to the "Other Credit Cards" Forum. Please follow this issue in its new location. Thanks!

/Moderator