So, I’ve resigned to buying something at the cheaper store and the rest at the store that has a loyalty card and accepts cc.

I don’t think you are being unethical at all. If you are living by their rules of redemption and getting them.

I don’t even think it is unethical to let someone else put their points on your card. I think that if the cashier rung up the points on two cards, then that would be unethical. If someone wants to give you their points, then that is fine. (I don’t think it is unethical to give away airline miles either.)

Who’s paying for the product? It is possible that they are losing money on that product. Maybe they are even losing money on you as a customer. But, there is a saying, “A crowd draws a crowd.” When you park in their parking lot, others see you and they think…”there’s someone there, it must be a good store, etc.” You advertise for them, even if you don’t realize it or even mean to. By your presence, you may influence others to come. Others will not be as savvy of a shopper as you. Thus, you’re fine. Don’t fret.

I’ve been redeeming my points at the store. So far I’ve gotten a couple of makeup carriers, a bicycle, a bathroom scale, a clock, an iron, a kitchen scale, and a coffee maker. All of these things were needed when I got them. I usually just let my points pile up until I need something. My son has asked me to get a bike for him when I get enough next time. He’s outgrowing his “little” bike. Over here, I can’t find used like I would in the states, so I probably will do that for him.

But as someone pointed out, many thousands, even millions of points go unredeemed. I’d be curious as to the actual ratio of points that go unredeemed to earned each year. We have a whole lot of BP points that are unredeemed. I think we could actually get someone worthwhile from them as well. The problem is, there wasn’t anything we wanted, last time I checked.

We fully expect that if you are chosen you let us know before you appear so we can be glued to the TV!

I use airmiles and the companies that accept airmiles are by no means ’small’ in stature.

The air miles program is not forced upon the vendor —- they accept it willingly.

There are many frugal folks who buy at stores that only offer air miles and often the stores have ‘air miles’ deals where you get more points if you spend a certain amount or buy a certain product. The system must work or else the companies that carry airmiles would trash the whole idea together.

I take advantage of the air miles using my credit card (1 mile for 15 bucks) for all my business and personal expenses then I pay off the full balance when I receive my bill. I can usually make about 8000-10000 air miles per year.

It’s a nice little perk for a guy like me. I usually pick up a free movie pass or two or a gift certificate for a night out at a restraunt with the woman.

The movie pass is a pretty sweet deal. 150 Miles for 2 tickets, 2 pops, 2 popcorns. Nice! That’s like 40-50 bucks right there.

I highly recommend you check out MNBA Smart Cash Platinum Plus Mastercard review @ http://www.four-pillars.ca/2009/07/17/best-canadian-rewards-credit-card/ . No annual fees and great cash back rewards. No more frustration about redeeming aeroplan points. MNBA Starwood Preferred Mastercard is also very good and I will doing a review on that in the future.

Points cards cause a distortion as you are not paying the true cost of a good. If there is a shortage in one sector, it is artificially hidden and the consumer loses touch with the realities. Voting with our dollars is the most important thing we can do in a consumer reality.

As well, as has been pointed out, credit cards in particular come out of the retailer’s pocket. If a retailer is making 15% profit on an item, the credit card fee is significant. Therefore the retailer must charge more to everyone. This system just enables those who happen to have premium cards – the rich get richer. Points collectors are gleeful about their 1% points accumulation, when everyone should be saving 2%. Clearly, retailers should be allowed to provide cash discounts.

The only points programs that really make sense in the real world is plans like Aeroplan, where the reward fills a seat that would otherwise be empty. There are still goods and services being consumed, but it’s not completely artificial.

1. There is a disincentive to redeem points….why cash in 25000 pts for a domestic flight to New York when 75000 will get you a flight to Paris or Shanghai? So you hold onto points for longer….meaning you redeem less often over a lifetime.

2. As a result, you accept paying $50-$100 more per ticket on Air Canada vs. other airlines, always saying “I pay a bit more, but at least I get the points”….the money you would have saved over 5-10 flights would be the same or more than the cost of the “free flight” – with more flexibility, availability and choice of airlines.

3. Even when flights are promised to have “no blackouts”, the only choices you have are the ridiculous 2 stop routes that take 3 times the travel time.

4. Let’s not forget that you’re still paying $175 a ticket in taxes/surcharges when you redeem.

I say this as a sucker, who continues to use an Aerogold, paying $200 a year for the privilege of racking up points I don’t redeem…

In general, the consumer psyche is attracted to “give me free” rather than being disciplined enough to say “I’ll make it free”.

Hmm. I’m pretty sure this is expressly forbidden in most CC acceptance agreements. Not that companies don’t do it, and get away with it .. but still.

Good to hear I’m not alone in redeeming points. There are some great points programs out there! Thanks for sharing your favourites. Some of them have me tempted. I may look into them further. Travel isn’t an issue as we only fly for business related reasons. We tend to drive to our holiday destinations.

We bought most of our Christmas presents (gift cards for family and relatives) using PC points last year. It was great! Trying to do the same this year…

Ethical – of course!

The average shopper is very lazy. They do not look for deals, don’t clip coupons nor wait until prices drop or products come on sale. We live in a society of “have it now” and impulse.

Given this, there will ALWAYS be people who pay the minimum balance on their credit cards. This is how MasterCard, VISA, AMEX stay in business – off people’s interest (no pun intended). MasterCard alone reported a net income of >$340 MILLION in Q2 this year. Anyone feel guilty now?

What’s more unethical, you collecting as many points as you can or them charging the $4.99 for the shaving cream?

I have difficult accumulating points for Airmiles due to the lack of Airmiles registered vendors in my location.

I don’t fly so I don’t have a chance of accumulating Aeroplans.

My favorite reward program is the MBNA Smart Cash Mastercard. 3% for groceries and gas. Easy to use and I never need to think about maximizing the points. It helps me to consolidate my regular shopping with my grocery shopping, since 3% cashback is only at supermarkets not Walmart or Zellers.

I guess it’s a no-win situation. In some respect, we’re paying for credit card use and loyalty programs whether we use them or not.

Wouldn’t it be more equitable for companies to not use points and reduce their prices for everyone? Would it be fairer to offer cash discounts rather than point incentives?

Great points about hidden agreements, hidden costs and brand loyalty. We do pay for those points. Even those of us who use the system to the our best advantage, we still pay.

If companies offered discounts for cash purchases, it would save them the hidden bank fees and loyalty program costs and would provide an immediate incentive to the consumer?

Many of you touched on the point that companies know what they’re doing and are doing it for a reason. I just can’t help but wonder if there is a better way for both the consumer AND the companies involved.

What are your thoughts?

Unethical would be to purchase a product, redeem all of the points you just received and any others for a reward, and then return the product for a full refund allowing you to keep your reward.

Unethical would be to have more than one card in your name if their T&C’s forbid it (perhaps helpful during Shoppers ‘Refer A Friend’ promotion as it could allow you to refer yourself).

Unethical would be to forge bonus point accumulation or redemption coupons and present them for use.

I wouldn’t be surprised if these companies use statistics to analyze, and forecast, people’s purchasing patterns along with points accumulation and redemption. They know some people will be fantastic coupon clippers, only shop on special days or for bonus reward items and use the system legally to the max. (It is like our tax system – you are well within your rights to legally avoid paying as much tax as you can.) On the other hand, there will be people who don’t accumulate points (as mcmatterson pointed out) as it is too much trouble. There are also others who accumulate them but rarely or never redeem them. And you know what happens to those points? They either expire worthlessly or over time the rewards ask for more and more points for the same product or service.