You have saved enough points for a specific journey. However, when you are ready to book, you find that the required points are more than you remember, and there is no email in your inbox explaining why this is the case.
What exactly happened?
Most people are unaware that rewards programs have the right to adjust the value of points, often without their knowledge. More importantly, these changes usually apply to the points you have already accumulated.
Here’s how you can detect changes in points, understand the reasons behind them, and take appropriate actions.
Your rewards program may have “devalued.” This term is commonly used in the industry to indicate that either the number of points needed to redeem the same reward has increased or the value of each point has decreased.
While your points balance has not decreased, your purchasing power has.
These devaluations usually do not come with prior notice, as federal regulations generally do not require announcements for changes in rewards programs. Therefore, a preventive measure you can take is to confirm the actual value of your points before redeeming.
If you treat your accumulated points as money in the bank and suddenly find out that you need more points to redeem, it can be a surprise.
Dividing the cash price by the required points for redemption gives you the value of each point (in cents).
For example: if a flight ticket with a cash price of $400 requires 40,000 points for redemption, then the value of each point is 1 cent. If suddenly the same ticket requires 50,000 points for redemption, the value of each point drops to 0.8 cents. Even without any announcement, the value of your points has effectively decreased by 20%.
Based on current tracking data, the approximate value of major credit card points in September is: Chase and American Express cards are valued at around 2 cents per point, Citi cards at about 1.9 cents, and Capital One cards at around 1.85 cents.
The value of hotel points is usually lower, with Marriott Bonvoy valued at about 0.75 cents per point and Hilton Honors at around 0.4 cents. If your redemption value is significantly lower than these numbers, regardless of how appealing the marketing may be, it might not be worth redeeming.
1. The most obvious sign is needing more points for the same journey. You checked once before, and upon rechecking, you find that while the cash ticket price has not increased, the required points have.
2. Gift cards are also a simple way to determine if points have devalued. Originally, you could redeem a $100 gift card for 10,000 points, but now it requires 12,500 points.
3. Sometimes, changes can be easily noticed: the rewards program’s webpage quietly undergoes a redesign without any announcement – layout updates, changes in redemption numbers, without any email notification.
4. Increased points required for redeeming rewards.
Past fixed category-based redemption standards start floating based on cash prices, often meaning more points are needed.
5. Transfer bonus rewards disappear. Previously, transferring points to partner programs often came with additional 20% or 30% promotion bonuses, which have now silently reduced or disappeared without notice.
6. Reduction in partners for point transfers. When partners no longer participate in the program, the choices for transferring points decrease, reducing market competition and making the value of your points harder to secure.
7. Changes in point conversion ratios. Points that could previously be converted at a 1:1 ratio might now adopt a poorer conversion ratio. For instance, starting from October 1, Chase will change the Ultimate Rewards points conversion ratio for Sapphire Preferred and Ink Business Preferred cardholders transferring to World of Hyatt from 1:1 to 4:3; while Sapphire Reserve cardholders will maintain the original ratio.
8. High-value redemption methods transferred to credit cards with higher annual fees. When you need to hold a credit card with a higher annual fee to get the best redemption value, it means these rewards have been repriced.
In simple terms, there are three main reasons: unredeemed points are often listed as liabilities on the issuer’s books; each redemption comes with real costs; moreover, rewards programs depend on agreements with partners, which are also subject to periodic renegotiation.
When the cost of a rewards program exceeds the revenue brought in by the credit card, issuers typically adjust the program instead of canceling it outright. Increasing the points needed for redemption is the least noticeable adjustment method, hence often prioritized.
If significant changes occur in credit card terms, such as increased interest rates or added fees, issuers generally have to notify cardholders 45 days in advance, but changes to rewards programs are usually not bound by these regulations.
Therefore, sudden point devaluation often catches people off guard.
New York is an exception. A law in the state applies to credit card agreements signed, renewed, or modified on or after December 10, 2022. The law requires issuers to notify cardholders at least 45 days before modifying or terminating a rewards program; “modification” includes reducing the value of points. Additionally, cardholders have 90 days from receiving notice to redeem the earned points.
The Consumer Financial Protection Bureau (CFPB) has also highlighted this pervasive issue. In a May 2024 report, the agency listed the most common consumer complaints about credit card rewards programs: point devaluation, discrepancies between terms and marketing, redemption failures, and cancellation of earned points.
1. Redeem points strategically. Points are a “currency” whose value you cannot control. Stockpiling a large number of points long term is a bet that the rules will not change, but the rules are always changing.
2. Calculate before redeeming. Determine the actual value of each point by dividing the cash price by the required points for redemption. If the value per point is below 1 cent, consider if there are more worthwhile redemption options or choose cash equivalence directly.
3. Take action before announced changes take effect. If a rewards program has announced a reduction in point value at some future date, it is best to transfer or use those points before the new rules take effect.
4. Consider breaking out of the points chase cycle. Fixed cashback credit cards with no point devaluation issues have no freely adjustable point conversion tables. For those who do not want to bother tracking various point conversion ratios, this is a rational choice rather than a “downgrade” in functionality.
Point devaluation refers to any changes that reduce the purchasing power of your existing points. This typically occurs in two scenarios: when rewards programs increase the points needed for redemption or decrease the conversion rate when transferring points to partner programs.
Your points balance remains unchanged, so no abnormalities are visible on the account surface. Only when you redeem, you will realize the increased points required and feel the loss from point devaluation.
In most states in the US, issuers usually retain the right to modify rewards programs at any time, while federal regulations on advance notice generally apply to changes in interest rates and fees rather than rewards programs.
New York is a notable exception where the law requires issuers to notify cardholders at least 45 days in advance and provide a 90-day redemption period. In other states, points earned under the original rules might be subject to redemption under new, less favorable rules without your consent.
It is advisable to use points first. Points do not accrue interest, are not safeguarded against revaluation, and, in the long term, the value of points in most rewards programs tends to decrease.
This does not mean accepting unprofitable redemption methods to use up points, but having a clear usage plan and not accumulating points indefinitely. If a rewards program has announced specific rule adjustments on a certain date, it is best to use or transfer points before the new rules take effect.
It depends on how much time and effort you are willing to invest in managing these rewards. Travel points may provide higher value for each dollar spent, but require continuous monitoring of point conversion ratios, reward redemption prices, and partner changes.
Cashback provides a smaller margin for extra value but comes with no risk of point devaluation, as cashback redeemed at a certain percentage of the amount spent will not be repriced. If you have been caught off guard multiple times due to sudden changes in rewards programs, cashback may be a simpler, more direct option.
The Epoch Times ©2026. This article represents the views and opinions of the author, provided for general informational purposes only, without any recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or other personal financial advice. The Epoch Times does not guarantee the accuracy or timeliness of the article content.