Cashing out via Points.com->PayPal

Discussion in 'American Airlines | AAdvantage' started by Wandering Aramean, Feb 10, 2011.  |  Print Topic

  1. Wandering Aramean
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    Wandering Aramean Gold Member

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    As of yesterday (9 Feb 2011) Points.com added PayPal as a means to redeem AAdvantage points. Basically you can cash out your points directly, skipping gift cards, certificates, vouchers and the like. Sadly, however, the rates are pretty bad.

    Getting $100 out will run you 24,118 points. Ouch.

    [​IMG]


    http://boardingarea.com/blogs/thewa...worst-points-redemption-option-ive-ever-seen/
    http://blog.points.com/2011/02/09/points-com-paypal-introduce-a-new-way-to-use-your-miles/
    https://www.thepaypalblog.com/2011/02/paypal-teams-with-points-com-to-turn-airline-miles-into-cash/
     
  2. pjoalfa
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    pjoalfa Silver Member

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    What is sadder than 0.004 p/mi they offer is that out there there is actually someone who'll think it's a great deal and do it.
     
  3. Wandering Aramean
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    Wandering Aramean Gold Member

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    Indeed. They are preying on the uninformed and confused. The schemes become increasingly complex and confusing to the customers and then they clean up on the other end. Disgusting.

    I wonder how many folks are going to be cashing out the points that they earnt via the maximizer or other similar schemes where they are paying 3 cents/mile and getting paid out at 0.4 cents on the same points. Ouch. :(
     
  4. gemac
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    gemac Silver Member

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    Probably not the same people. The cash-outs would be people who had some orphan miles. The mileage maximizer people would be trying to get enough for a particular award.
     
  5. pjoalfa
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    pjoalfa Silver Member

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    Don't think for a second it's just orphaned miles that get cashed.
    My grandfather blows all his Amex points buying merchandise at 0.005-0.01 a point and no amount of explanation on my part will get him to budge.
     
  6. arkleseizure
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    arkleseizure Silver Member

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    Indeed. I'd like to consider this under the "its nice to have options" mindset, but it just seems completely useless.
     
  7. Wandering Aramean
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    Wandering Aramean Gold Member

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    It is worse than just useless in my view because the companies are setting up a system where they are offering nothing close to fair market value for the points. By making redemptions arbitrarily difficult they are enticing folks to waste the points. I know that's their job, but it would be nice if they weren't quite so blatant about it.
     
  8. gemac
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    gemac Silver Member

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    Tell him you will buy him his merchandise, and he can then use the points to buy travel for you. If this doesn't work, send me his name and address. [​IMG]
     
    magic111 likes this.
  9. JAbrams72
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    JAbrams72 Gold Member

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    Hmm, I wonder if this would be useful as a measure of FMV if you were to win a mileage prize? Any accountants out there have any thoughts?
     
    Mapsmith likes this.
  10. pjoalfa
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    pjoalfa Silver Member

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    Haha!! That was the second thing I tried. "Too complicated" :rolleyes:
     
  11. magic111
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    magic111 Silver Member

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    Or you can have him send his name to me and I will buy him a bonus gift.[​IMG]

    Seriously it seems to me the same mindset that support the nigerians who have millions to give you or the tv evangelists who will give you salvation.
     
    gemac likes this.
  12. Carolyn

    Carolyn Active Member

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    You could certainly try it as it is the value that has been established from a third party. I certainly will be using this as evidence of fair value when I get my 1099 for miles earned from Citibank checking.
     
  13. Eloy Fonseca Neto
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    Eloy Fonseca Neto Silver Member

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    To exchange miles for cash on paypal is a very bad deal! I prefer to give a first class ticket as a gift for 62,5k than cashing out 400 dollars!!! Absurd!!!
     

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