Canadians love their rewards programs, but keeping track of them all can be difficult. Over 90 per cent of Canadians have joined at least one loyalty program, with the average being more than 12, according to data from one big bank.
With all those loyalty programs on the go, a key challenge is to keep the accounts active. Not doing so risks having your points expire, and that’s like leaving money on the table.
As a points collector, you should always be in the mindset of earning and burning your points. Not only do you not have to worry about them expiring, but you’ll also avoid any potential devaluations to the loyalty program. (Some programs, for example, effectively reduce the value of acquired points by increasing the number of them needed to redeem for rewards.)
While it doesn’t take a lot of effort to hang on to your points, it’s crucial to know the rules.
Understanding loyalty program expiration rules
In most cases, you must make some kind of transaction within a 12- to 24-month period. As long as you’re earning or redeeming points/miles, your rewards won’t expire. However, there are a few general nuances to be aware of.
Expiration over time: Points earned in most food and drink loyalty programs, such as Tims Rewards, MyMcDonald’s Rewards and Starbucks Rewards, expire after a certain period of time. Regardless of your activity, you have anywhere from six to 12 months to use them. There are apps that help by clearly displaying when your points will expire. Still, this plan structure is the least flexible.
Active account: A few loyalty programs have a policy where your points or miles don’t have an expiration date. However, if your account is inactive for a set period – usually two years – it’ll be deactivated. Once your account goes dormant, you’ll lose your points or miles, so it’s essentially the same thing as having them expire.
Good standing: Generally, any points earned through a bank rewards program won’t expire as long as you have a credit card account in good standing that earns the same points currency. However, if you close your account, you’d typically lose your points after a set period.
Most loyalty programs will send you multiple e-mails if your rewards are about to expire. That said, this requires you to sign up for marketing communications, and quite often, these e-mails don’t end up in your primary inbox. Alternatively, you could use an app such as Award Wallet to track your expiration dates, but that only works with select travel loyalty programs.
Ways to keep your loyalty programs active
Whether it be Aeroplan, Air Miles or PC Optimum, having a co-branded credit card allows you to earn points on your everyday purchases. Your account will remain active if you make one purchase within a certain time frame. Some of these loyalty programs even offer credit cards with no annual fee, so you can minimize your costs to keep your account open.
Instead of relying on a credit card, you could make a purchase with a partner. For example, you can link your Aeroplan account to Starbucks Rewards, Uber and LCBO. Aeroplan also has a eStore with hundreds of partners. With Air Miles, you can earn extra miles through card-linked merchant partners or on specific products when you scan your receipts.
Buying points is another option for many travel loyalty programs, but the value is rarely worth it unless you need a top-up for a specific redemption. That said, paying for points is another way to keep your account active.
Some loyalty programs allow you to donate your points to charity if you’re in the giving mood. Although you’d be limited to the charities partnered with the loyalty programs, this strategy is worth considering since you’re giving back, and you could get a tax receipt.
Transferring points from one loyalty program to another can also help. For example, you can transfer RBC Avion Rewards to British Airways Avios or Hudson’s Bay Rewards. With American Express Membership Rewards, Aeroplan and Marriott Bonvoy are transfer partners. Many loyalty programs also allow you to transfer your points and miles to other members – say, friends or family – but there’s often a fee involved, so it’s not a good deal.
Don’t hoard those points
Some people like to save up their points for a big redemption. That’s risky since you could lose everything if you aren’t paying attention and your account has been inactive. Loyalty programs are ruthless. Once your points have expired, the odds of you getting them back are next to none unless you’re willing to pay for them.
The easiest way to keep your loyalty programs active is to earn points. That said, if you’re constantly looking for ways to do so, it may be more trouble than it’s worth. It might be better to let your points expire and focus on the programs you regularly benefit from.
Barry Choi is a personal finance and travel expert at moneywehave.com. He was previously affiliated with Aeroplan, American Express, Marriott Bonvoy, and PC Optimum, but currently has no relationship with any of the brands.