I think the main argument is the whole "total cost of doing business" bit.

For example, the very fact that a merchant accepts American Express means that I'm effectively buying 1 Starpoint (or whatever) per dollar by shopping there. If I use cash, I'm still paying for the Starpoint - I just don't receive it. Therefore, if a merchant accepts Amex, I must use Amex.

Perhaps oddball logic, but it's basically the same with all of these deals. The airline bakes the cost of a fraction of a future trip into every one of my paid trips. If I never take the future (award) trip, I've still bought parts of it over time.

Does it bother me? No. I definitely don't want to see non-EQM/RDM fares proliferate amongst the airlines I use. I definitely don't want to see merchants tacking on fees every time I use a credit card. But I can see where one might muse "What would the world without miles look like?" It's even more complicated now that the mileage programs are profit centers in and of themselves.

This is a specious argument.

If accumulating reward miles and points is unethical, so are so many other things in life, even everyday things such as using your credit card. After all, merchants have to raise their prices to cover the card transaction fees. Cash customers usually pay the same price as those who pay with credit cards. And what about grocery store coupons? I'm not a coupon clipper, but I know that I'm missing out on savings that some enjoy.

I have no ethical angst about using reward programs. It's a win-win situation. I win when I can redeem for an award. The merchant wins because they get me as a loyal customer. When I reserve flights and hotels, I am far more likely to reserve with those programs that offer miles/points that I accumulate.

But I will have to consider this seriously later this month. My wife and I will be flying round trip from the US to South America in J on AA using my miles. And we've got a week reserved at the Marriott Buenos Aires using my Marriott points. I promise to feel guilty during this trip.

The thread brings up questions about how kindly we view the credit card behemoths we travelers "profit" from. Has it been ethical for card companies to drive (ok, "implicitly encourage") millions of Americans to go into debt over the last generation and effectively break the financial backs of our middle and lower classes? No, it hasn't been. But, at the same time, we use their cards, pay their fees and travel on their dime, we perpetuate their largely unethical existence. Is that ethical? Hmmmm...

How have banks been unethical in encouraging irresponsible borrowing any more than Hershey's has been unethical in encouraging irresponsible overeating? If banks offer me appealing rates that I may use to swamp myself in debt or Hershey's offers me cheap chocolate on which I may gorge myself into obesity, they are providing me a useful products that I may use to my benefit if I'm responsible. Hardly unethical.

Banks buy miles and are selling them for a higher price than they pay for them. Sure - clever customers might be getting them for a much lower price than their peers, but the banks are happy to keep buying and selling them because on the whole they turn a profit doing so. It's no different than a retail store that is happy to lose money selling teaser items to frugal customers because it also leads some of these same people as well as others to splurge on their high margin goods.

If anyone became a victim (banks of their customers alike), there is an easy out... stop doing business involving miles.

Chase, Citi, et al have teams of lawyers and experts poring over the fine print of my dealings with them looking for any and every loophole and nefarious gray area they can use to screw me any way they can. From my tax dollars to my credit card agreement. If I let my guard down for a moment and exposed a weakness where they thought they could take another buck from me (of if my fine government exposed a weakness that I am on the hook to pay for) I am quite certain the fine folks in their management would go for the jugular, take no prisoners and leave behind nothing but scorched earth and then would pat themselves on the back and say job well done. Banking these days is an adversarial endeavor. I get a warm fuzzy feeling when I burn a bank for a bunch of miles and never give then another dime of undeserved business.

I am also happy that the airlines profit from selling them the miles as well. At least the airlines do deserve to profit from my business.

unless i am misunderstanding the OP point...and being a newbie to this board...as i read the forums i think it is totally legit and maybe even "foolish" not to accumulate points/miles from cc purchases and the like..maybe what the OP and i find myself thinking about is the gray line regarding opening and closing multiple cc(the same ones), churning coins, etc...if you asked 100 people nobody i think would have a problem with miles from everyday purchases but some percentage would think it was "unethical" to churn cc,coins etc..or at least not be willing to do it..that was how i understood the OP's dilemma..

Could you give an example or two? Certainly you don't mean to suggest that clear terms that don't provide much opportunity for bucking are tantamount to "screwing".

Shouldn't management's obligation to shareholders be to maximize profits in a legal manner? If customers are dissatisfied, as you are, they will move their business to another bank and thereby reduce revenues. For this reason, management has a natural incentive to be mindful of customer satisfaction. It is interesting that you are opposed to banks maximizing profits through fee structure but okay with the airline business, which does the same (and rightfully so).

Anyone thinking that way should be mindful of the fact that Citi finds the practice of allowing churning profitable because net revenues exceed the net costs. If this ever changed, they could simply make rules against it, reduce the bonus miles, or place additional restrictions on them. Recently, there has been suspicion they are doing exactly that, so there's no need for the OP or anyone else to feel badly for them... a failing business model will only last so long, as failure is the best form of regulation.

The banks define their own rules for allowable churning. There's no ethical question there whatsoever. It's clear that they own the rules; there is no way for the consumer to partially or completely evade them.

If you try to do so via identity theft or other false information, that becomes a legal issue not an ethical one.

These companies make their rules knowing full well that some people will look to earn miles with minimal cost to themselves and without benefiting the company. They are aware of the risks of offering miles and put in place the rules and requirements that make it worthwhile for them to offer these promotions. Following these rules as these "mileage hoarders" do does not cross any ethical or legal boundaries.