Ever wonder why banks keep handing out massive signup bonuses and 5X points on spending, even though we all know points eventually get devalued? Shouldn’t they be tightening the reins by now?
It turns out that the reason is pretty simple: most people are absolutely terrible at using their points.
While you and I are busy scheming how to fly Singapore Airlines First Class or stretch points to the max, the average cardholder is out here cashing in their hard-earned Membership Rewards for… a $60 statement credit.
And honestly? That’s the best thing that could happen for us, who know what we’re doing.
How People Actually Use Their Points
Amex’s latest “Points Pulse” recap, covering 2025 Membership Rewards activity, told basically the same story. Travel transfers didn’t make the top three.
The most frequent Membership Rewards redemptions were:
- Gift cards
- Paying with points at checkout
- Statement credits / covering card charges
That matters because these aren’t just “less exciting” redemptions. They’re usually much lower-value ones. Covering card charges generally gets around 0.6 cents per point, paying with points at checkout is often around 0.7 cents per point, and many gift cards fall below 1 cent per point. By comparison, transferring Membership Rewards to airline and hotel partners can be worth much more, even without chasing some once-in-a-lifetime first class redemption.
Reminder that this ranking appears to be based on the number of redemptions, not the number of points redeemed. Someone using points for several small statement credits may count more often than a single large transfer to an airline partner.
Why This Is Fantastic for the Rest of Us
These aren’t small differences. Cash-like redemptions range from around 0.6 to 1 cent per point. That means someone redeeming 10,000 Membership Rewards points may get $60 to $100 in value instead of using those same points for a much more valuable travel redemption.
The reality is that many people don’t want to bother learning how to transfer points to Singapore Airlines and book a flat-bed seat to Asia. Even relatively simple transfers to JetBlue can yield around 1.3 cents per point, and Delta SkyMiles—despite the jokes—still averages over 1 cent per point.
But instead of unlocking real value, plenty of people are cashing in their points for Amazon purchases, statement credits and gift cards.
And you know what? That’s fantastic news for us.
Final Thought
While I would never redeem my points that way, these low-value redemptions allow Amex to continue offering lucrative spending multipliers and massive signup bonuses.
So, to all of you cashing out your Membership Rewards at sub-1-cent value: thank you. Your redemptions help keep the gravy train rolling for the rest of us—who will happily keep transferring to Aeroplan, Avianca, Flying Blue and the other transfer partners that still provide real upside.
Want to comment on this post? Great! Read this first to help ensure it gets approved.
Want to sponsor a post, write something for Your Mileage May Vary, or put ads on our site? Click here for more info/
Like this post? Please share it! We have plenty more just like it and would love it if you decided to hang around and sign up to get emailed notifications of when we post.
Whether you’ve read our articles before or this is the first time you’re stopping by, we’re really glad you’re here and hope you come back to visit again!
This post first appeared on Your Mileage May Vary
