News Article: No Freebies in Credit Card Mileage Programs

English news article originally published in China Daily Hong Kong on 14 Aug 2014

HONG KONG – Redeeming air tickets with credit card bonus points may take more spending than expected, according to a Consumer Council survey that revealed more than a threefold difference in how various programs calculate mileage.

The survey found that among 16 credit card mileage schemes, the amount of spending required to earn a single air mile ranged from HK$5 to HK$16.67.

Other hidden costs were also identified. Variations in exchange rates and charges on foreign currency transactions could further erode the value of accumulated points.

More than half of the programs studied required cardholders to pre-register before becoming eligible for travel rewards.

Annual fees varied widely—from HK$50 to HK$300—while some cards imposed additional administration charges of HK$50 to HK$500 just to redeem miles.

The Council urged consumers to carefully read the fine print before signing up for mileage offers, and to understand the full terms and conditions associated with earning and redeeming points.