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Adam Ruins Everything - Frequent Flyer Miles Are Actually Costing You Money

Adam Ruins Everything - Frequent Flyer Miles Are Actually Costing You Money

Old Dec 25, 18, 4:53 pm
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Adam Ruins Everything - Frequent Flyer Miles Are Actually Costing You Money

While I express no opinion regarding the YouTube video, I believe this is a wake up call or a pause of second thought to some of us here.

Enjoy.

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Old Dec 25, 18, 6:12 pm
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Simplistic sensationalist click-bait.
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Old Dec 26, 18, 4:13 pm
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Nothing in the video supports the claim that "Frequent Flyer Miles Are Actually Costing You Money"

Nothing new that an aware consumer doesn't know..
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Old Dec 26, 18, 9:27 pm
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Originally Posted by CPRich View Post
Nothing in the video supports the claim that "Frequent Flyer Miles Are Actually Costing You Money"

Nothing new that an aware consumer doesn't know..
The argument is that high CC fees are now baked into prices meaning everything is 2% more expensive because of it. If there were no frequent flyer miles CC fees would be lower and fewer people would even use CCs making everything cheaper.
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Old Dec 27, 18, 7:06 pm
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Well, they actually do cost us money if they are acquired via credit card. See this flyertalk discussion.
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Old Dec 27, 18, 9:00 pm
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So the message is that you need to be smart to use credit cards and frequent flyer miles? How insightful.
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Old Dec 28, 18, 6:59 am
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Originally Posted by pauq View Post
The argument is that high CC fees are now baked into prices meaning everything is 2% more expensive because of it. If there were no frequent flyer miles CC fees would be lower and fewer people would even use CCs making everything cheaper.
I get 1.5% cash back as miles and a 0.5% fee to be able to pay with credit card is entirely acceptable to me. I guess it's only an issue if you decide to leave that cashback option on the table
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Old Dec 28, 18, 8:56 am
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Originally Posted by pauq View Post
The argument is that high CC fees are now baked into prices meaning everything is 2% more expensive because of it. If there were no frequent flyer miles CC fees would be lower and fewer people would even use CCs making everything cheaper.
You think those companies with the 2% already baked in (vs. just charging at the end on top for people using CC -- like PayPal) would roll back the 2% if CC fees were lower? Right......

Every once in a while you see a gas station out there that gives it back to you as a discount if you use cash but that's about it

As to whether I lose money? Well if I can redeem for more than 2% the short answer is no, or if I can generate more than 2% in points (like Chase Freedom 5x categories) the answer is no.

You can generate at least 2% back in most instances these days (AMEX EveryDay 2x groceries, Chase Reserve 3x Restaurants and Travel, AMEX Plat 5x Airfare) and then use something like the CFU for 1.5% on all else. Combined with strategic redemptions it's pretty easy to clear the 2% cost being baked into prices -- and as noted above, using a debit card or cash doesn't typically lead to removal of the 2%, you just end up paying the same 2% baked in CC fee without reaping the benefits.
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Old Dec 28, 18, 3:32 pm
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Basic premise:

- Lots of people don't know how to use their miles.
- Airlines sometimes devalue the programs.
- Some people use airline credit cards for leverage at high interest rates.
- Credit card fees are already baked into stuff.

In other words, n00b stuff.
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Old Dec 28, 18, 7:36 pm
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Originally Posted by pinniped View Post
Basic premise:

- Lots of people don't know how to use their miles.
- Airlines sometimes devalue the programs.
- Some people use airline credit cards for leverage at high interest rates.
- Credit card fees are already baked into stuff.

In other words, n00b stuff.
Seems to summarize the whole lot. The title of the video should've been "Adam Boils Some Water in a Kettle" IMHO

-James
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Old Dec 29, 18, 2:09 am
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Originally Posted by Duke787 View Post
and as noted above, using a debit card or cash doesn't typically lead to removal of the 2%, you just end up paying the same 2% baked in CC fee without reaping the benefits.
Exactly.

I think @pinniped already summed up better than I ever could.
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Old Dec 29, 18, 4:52 pm
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The cost to a merchant to accept a credit card is sometimes more than 2%, so occasionally I have been able to negotiate a discount of more than 2% by offering to pay cash.
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Old Dec 29, 18, 5:41 pm
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Originally Posted by pinniped View Post
Basic premise:

- Lots of people don't know how to use their miles.
- Airlines sometimes devalue the programs.
- Some people use airline credit cards for leverage at high interest rates.
- Credit card fees are already baked into stuff.

In other words, n00b stuff.
That's exactly the show's typical format (there is also an "upside/happy ending" portion in each episode), and the show is actually quite good. That segment is targeted at the "59% that don't understand how the airline miles system works" - not FTers. Ma and Pa Kettle would certainly learn something from the segment, and you have to admit that we are the antithesis of the most profitable FF customers so we've already been past this part of the learning curve.

They also did a segment on airport security in Season 1. Primarily about the theater of the effects and person inspections, the fact that the hardening of cockpit doors and passenger revolts are what has halted hijackings, and and that checkpoints are just creating soft targets, that episode also didn't enlighten anyone that's been over to TS&S. It did open the eyes of Mrs. pa3lsvt, who flies no more than 4-6x per year (mostly with me) and had trouble understanding my frustration with the whole security process.
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Old Apr 23, 19, 8:39 pm
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If a shop gives 2% discount in paying cash, I pay cash, that's all. And this discount is common in my place.
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Old Apr 23, 19, 9:57 pm
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Originally Posted by miklcct View Post
If a shop gives 2% discount in paying cash, I pay cash, that's all. And this discount is common in my place.
But then I don't get my miles.
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