Comparing Value in Credit Card Reward Programs: Points, Cash Back, and SkyMiles

Nowadays, people with credit cards are getting bigger and better rewards than in the past. It used to be that being a credit card holder was privilege enough. Then, consumers hoped for the coveted gold and platinum cards.

Today, the benefits come in many forms from cash back based on a percentage of purchases, miles that accumulate to bring forward an airline ticket or upgrade, and there is even an avenue where Amway Global IBOs can attain points and business volume that will be returned to them in the form of income.

Amway Global Independent Business Owners Get Rewards for Visa Purchases

Those who are involved with the Amway Global network marketing opportunity already know the array of products available, some of which have been around since before the company was founded 50 years ago.

As companies grow and markets change, so do their opportunities. And while everyone who has credit card accounts is trying to get the most bang for their borrowing, so can Amway IBOs.

The way it works is that when a person has an Amway Global Visa card through Bank of America, they are able to receive points and business volume (sales volume) as a result of their Visa usage. For purchases made with the card on the Amway Global website, 3% of the amount purchased is recorded as sales volume. If a $100 purchase is made, then a $3 sale is recorded simply because it was done with the Visa card. All other purchases are recorded as well, but at 2%.

So, if an Amway Global IBO was to use his or her Visa card for $500 worth of purchases on the Amway site, and then use it for another $1,000 at other retail establishments one month, the sales volume netted would amount to $35, bringing an additional income to him or her between $0 and $8.75, or a little more than half a percent charged on the card for those earning top commissions.

Two downsides to this card are that its rewards are only offered to those in Amway Global’s network marketing program and that the rewards are paltry when compared to other reward programs.

Cash Back on Credit Cards is Usually 1%

People who have never received rewards for borrowing before might think those of Amway Global IBOs show a fair amount of potential with rewards ranging from nothing up to half a percent. But those who are more accustomed to being valued by their bank would tend to forgo such an offer for a guaranteed rate that is higher.

Cards that offer cash back often do so at 1%. Some may offer more during a promotional period. This means that the same $1,500 that was spent with the Amway Global Visa card would receive a guaranteed $15 rather than a potential $8.75.

While this is a grand improvement compared to the one previously mentioned, cards that offer miles can be even better.

Getting SkyMiles From Credit Card Purchases Can Reach 2%

If these rewards seem strange to one who is used to getting little to nothing back from credit card companies, then things will seem quite bizarre with SkyMiles. Credit card companies that have teamed up with businesses such as Delta Airways are offering a program called SkyMiles where US consumers can redeem miles for airfare.

SkyMiles are accumulated based on money borrowed and paid back. So, a $100 purchase with a SkyMiles card that is paid back will equate to 100 SkyMiles. The rewards redemption system works in this way:

  • 25,000 miles buys a round trip coach seat in the lower 48 states
  • 30,000 miles buys a round trip coach seat to Hawaii, Alaska, Mexico, or the Caribbean
  • 40,000 miles buys a round trip first class seat to any of the above

Flying from New York’s Kennedy Airport to Alexandria, Louisiana can cost more than $500 roundtrip. If a person was to cash in 25,000 SkyMiles for a seat in coach, he would be redeeming his benefits at a 2% return, or twice the cash back offer noted above.

The drawbacks include blackout dates encompassing holidays and other heavy travel times. But there are more benefits as well. SkyMiles cards allow card holders to receive discounts on car rentals, hotel rooms, and more. Beyond that, bonus miles can be received simply for staying at a specific hotel, boosting rewards to earning nearly 3%, or possibly higher!

While there are dangers in misusing credit cards, they can be necessary to carry in case of emergencies or placing reservations. If one must use a card, why not use the one that will provide the maximum benefit to its holder? Of the three mentioned here, SkyMiles are best for those that travel by air. For all others, cash back is a fair deal.