Alt Points refer to Alternative Points systems used primarily in loyalty programs, credit card rewards, and other membership schemes. They are distinct from traditional points systems like standard airline miles or hotel points tied to specific brands.
Core Concept
Instead of offering currency tied to one specific vendor or product, Alt Points provide flexible redemption options. Holders can typically redeem them for various goods, services, travel bookings, gift cards, or even statement credits across a broad range of partners.
Key Characteristics
- Flexible Redemption: Unlike airline miles confined to flights, Alt Points often allow transfers to multiple travel partners, conversion to statement credit, or direct purchase via program portals.
- Value Calculation: Alt Points usually have a fluctuating value based on redemption method. Travel redemptions or partner transfers might yield higher value per point than statement credits.
- Multiple Earning Avenues: Earning Alt Points is typically possible through various credit card spending categories, shopping portals, or program partnerships.
- Consolidation: These systems allow members to combine points from different sources into one pool.
Common Types of Alt Points Programs
- Bank Rewards Points: Issued by major financial institutions alongside their credit cards. Examples include points from issuers like Chase, American Express, or Capital One. Users earn points per dollar spent on the card, redeemable flexibly.
- Flexible Travel Points: Specific travel programs offering transferability to multiple airlines or hotels.
- Merchant Coalition Programs: Programs aggregating purchases across various participating merchants, rewarding with points usable broadly.
Value Proposition
Their primary advantage lies in choice and potential maximization. Holders aren't locked into one redemption path, allowing them to choose options offering the highest perceived value. Savvy users leverage transfer partners or premium travel redemptions to get significantly higher value than the points' nominal cash value.
Important Considerations
- Point Valuations Fluctuate: The cents-per-point valuation varies significantly between programs and redemption methods.
- Transfer Ratios: Transferring points to airline/hotel partners often involves specific ratios (e.g., 1:1, 2:1).
- Expiration Policies: Terms vary; points can expire due to account inactivity or program changes.
