3-On Your Side: Claiming Your Reward Points
PHILADELPHIA (CBS) -- Americans accumulated about $48 billion in rewards points last year staying at hotels, booking flights or buying stuff on their credit cards.
While racking up those points is easier than ever, claiming them may not be. So, 3 On Your Side consumer reporter Jim Donovan has some information that can help.
Karen Stealey saved up her credit card points for years to get a free exercise bike like these.
"I love spinning. It's my favorite thing to do," said Stealey.
Melissa Cenker paid for grad school and business expenses with plastic to save enough miles for a flight to Hawaii.
"We were stock piling and watching them, watching them add up," said Cenker.
But when these women tried to cash in their points they hit a dead end.
"I tried to buy the bike for about six months and every single time I went on it was out of stock," said Stealey.
Karen's bike was finally discontinued.
And Melissa says when she went to book her flight it was no longer available.
"That was the only date that worked for us," said Cenker.
Karen and Melissa aren't the only frustrated consumers.
The Better Business Bureau has received hundreds of complaints related to rewards programs.
A recent survey shows each year, at least 16 billion dollars in rewards points go unredeemed.
That's about $205 wasted dollars per U.S. household.
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"You get so exasperated that you're just going to give up," said Financial expert, Juliette Fairley.
There are about 2.1 billion reward programs out there and the average American household is signed up for more than 18!
"I think people just don't understand the programs and they just don't think about it," said Kathy Doyle Thomas with Retail & Advertising Marketing Association.
New apps and web sites can help you track, swap, sell and even buy more. But experts say be careful. Some charge a fee and most require you to enter your credit card info including passwords, something not everyone is comfortable with.
Even the industry admits not all programs make it easy for you to claim your prize.
"It's really the fault of the business. If we make it so hard for you to redeem your cards then we failed you," said Doyle Thomas.
Melissa and Karen are still deciding how to use their points.
If you're in the same boat, be sure to use them and don't lose them because anytime you don't cash in you're just helping the business' bottom line.
Before you sign up for a program know the rules about a company's program. Pick the one that has the lowest point requirement to get a reward. And most importantly, stick to that retailer or use that one credit card to reach your goal faster.
Reported by Jim Donovan, CBS 3
