Navigating the Legal and Practical Landscape of Buying and Selling Airline Miles

Airline miles and rewards points have transformed into a valuable form of currency, unlocking an array of enticing rewards for avid collectors. While the value of these miles is evident, the practice of buying and selling them raises legal and ethical questions. In this exploration, we delve into the nuances of this common yet controversial practice, examining the legalities, risks, and potential alternatives.

Selling Miles: Not Illegal, But a Breach of Program Rules

Let’s address the legality upfront. Selling airline miles is generally not illegal from a legal perspective; however, it consistently breaches the terms and conditions set by loyalty programs. These programs explicitly prohibit activities such as selling, bartering, or transferring miles for consideration. For instance, American AAdvantage outlines this in their terms, emphasizing the voidance of miles if transferred for cash or other considerations.

Risks Involved in Selling Miles

While not explicitly illegal, the risks associated with selling miles are substantial. Airlines vigilantly monitor accounts for suspicious activity, responding promptly to online ads and closely scrutinizing redemption patterns. Engaging in selling miles, especially with strangers on the internet, poses a high risk of account closure and potential legal consequences. Airlines hold the right to confiscate miles, as they technically own the miles in users’ accounts.

Legitimate Bartering of Miles: Is It Possible?

Airlines offer the option to transfer miles between accounts, but it often comes at a cost and doesn’t represent good value. While paying to transfer miles is a legitimate option, being compensated for such transfers still violates program rules. Points.com facilitates the trading of miles between select accounts, but the exchange rates are often unfavorable, making it an impractical and costly choice.

Strategic Tips for Managing Your Points:

1. Choose Flexible Points Programs: Instead of solely focusing on earning airline miles, opt for credit card spending that earns cash back or transferable points currencies, providing greater flexibility.
2. Extend Mile Expiry Dates: If faced with expiring miles, explore options to extend their validity. Simple purchases through airline shopping portals or minimal donations to charity can often reset the expiration clock.
3. Strategic Mile Crediting: When earning miles through flying, consider strategically crediting them to an airline different from the one you’re flying. This flexibility can be valuable in the long run.
4. Consider Merchandise Redemption: As a last resort, explore redeeming miles for merchandise if you find yourself in a situation where selling seems tempting.

Conclusion: Navigate Wisely

While the allure of selling miles may seem tempting, the associated risks and violation of loyalty program rules make it an unadvisable practice. Instead, adopting a strategic approach to earning, managing, and redeeming miles can ensure you maximize their value within legal and ethical bounds. Remember, the journey of miles is as crucial as the destination they unlock.

What’s your perspective on buying and selling airline miles? Share your thoughts on navigating the complex world of rewards currencies.