What Are Retailer Loyalty Points Worth? A Redemption Value Guide

What Are Retailer Loyalty Points Worth? A Redemption Value Guide

A store's points are worth exactly what its own terms say, and those terms differ in three ways that decide the real value: how many points make a reward, how long the reward lasts, and where it can be spent. A program that pays 7.5% in rewards that expire in six months can be worth less to an occasional shopper than one paying 3% that lasts nine. This guide puts the numbers side by side for six catalog store programs, each taken from the program's own page, and then for the three portal and card currencies that pay on the same orders: Rakuten cash back, Chase Ultimate Rewards and Capital One Shopping's rewards.

Store Programs: What a Point Is Worth

Every program below pays in its own store credit, worth face value at that store and nowhere else.

The sources: H&M's membership page, Club Chico's, American Eagle's credit page, L.L.Bean Rewards, SLT Perks and REI's Co-op Member Reward page.

Read the "how long" column as part of the value. A Sur La Table reward unused after 45 days is worth nothing, so for a shopper who places one order a year, SLT Perks is worth close to zero however generous its tiers look. L.L.Bean's 270-day clock resets with every new $5 of Bean Bucks, so a regular shopper rarely loses anything. H&M's points vanish at the membership anniversary if they have not reached 250, which means a balance of 240 is worth $0, not $4.80.

What Each Program Counts

The headline percentage applies only to the purchases a program counts, and those lists differ:

• REI pays its member reward only on "eligible full-price" purchases. Sale, clearance, Outlet, used gear, gift cards and classes earn nothing, so a shopper who buys on sale gets far less than 10%.
• L.L.Bean counts points "after discounts and before taxes, shipping, and other fees," and Bean Bucks can be combined with other discounts.
• American Eagle pays the 16% card rate only when a Real Rewards card is "the sole payment type" on the order.
• Chico's allows "only one Chico's Brand offer per order," and its general offer terms exclude gift cards, taxes and shipping.
• H&M deducts points for returned items and excludes gift cards and charity items from earning.
• Sur La Table counts all purchases, cooking classes included, but the reward cannot be used on clearance or combined with coupons, and it carries a minimum purchase from $30 to $100 depending on its size.

The practical test for any store program is: what would I actually spend at this store before the reward expires, at full price, with no coupon? That number times the return rate is what the program is worth to you.

Portal and Card Currencies

Three currencies pay on top of store programs, and they are not all worth what they appear to be.

Rakuten cash back is the plainest. It pays real money every three months, by check, PayPal, Bilt Points or American Express Membership Rewards points, once confirmed earnings pass $5.01, according to its payment page. Purchases typically take 3 to 14 weeks to confirm. A confirmed balance of at least $5.00 can also be redeemed straight away for a gift card from 40-plus brands. A dollar of Rakuten cash back is worth a dollar.

Rakuten paid as Amex Membership Rewards points converts at a fixed rate: Rakuten's Membership Rewards FAQ says "10% Cash Back = 10X points," one point per cent. Choosing points is worth it only if you will get more than a cent from each point when you spend it.

Chase Ultimate Rewards has a stated base value. Chase's Sapphire Reserve page says points are "worth $0.01 each when redeemed through Chase Travel," with Points Boost promotions on select flights and hotels raising that to up to $1.50 per 100 points for Sapphire Preferred cards and $2.00 for Sapphire Reserve. Chase's terms say the points do not expire while the account is open.

Capital One Shopping rewards are the one to discount. Its own help pages say Shopping Rewards "are not equivalent to money and do not have a cash value" and can be redeemed for eGift cards from select retailers. A 2% rate there is worth 2% only if those gift cards are for stores you already use.

Airline miles from shopping portals have no fixed value; Delta, for example, prices award seats dynamically, though it says SkyMiles do not expire.

Stacking Opportunities

• Store program plus portal plus card — the three are paid by different parties (the store, the portal, the card issuer), so all three can apply to one order.
• Match the program to how often you shop — a high rate with a short expiry suits a regular shopper; an occasional buyer should value it near zero.
• Prefer cash when unsure — Rakuten's cash back is worth face value everywhere; choose points or store credit only when you know where they will go.
• Read what counts — REI's full-price rule and American Eagle's sole-payment rule can cut the headline rate to zero on a given order.

Redemption Value

On a $200 order, at each program's base rate and before any card or portal: H&M earns 200 points, $4 of value but short of its 250-point reward, Chico's $5 (or $15 with its card), L.L.Bean about $6 (or $10 with its card), American Eagle $8 at Level 1 (or $32 with its card), and REI about $20 if every item is full price. Add Rakuten at its usual 2% and that is another $4 in cash; during a 10% Rakuten promotion, $20. The store figures are the larger numbers, but only the Rakuten cash can be spent anywhere, and only if the store rewards are used before they expire are they worth what the table says.

For portal rates by brand, see our portal rate roundup.

Bottom Line

A store point is worth its stated conversion only inside its own rules: 2% at H&M, 2.5% at Chico's, 3% at L.L.Bean, 4% to 8% at American Eagle, about 10% at Sur La Table and REI, more with each store's card, and nothing at all once the reward expires or if the purchase does not count. Cash back from Rakuten is worth face value, Chase points a cent each through Chase Travel or more with Points Boost, and Capital One Shopping's rewards only what its gift cards are worth to you. Value each program by what you will really spend there, at full price, before the clock runs out.

References

• H&M Membership - H&M
• Club Chico's - Chico's
• Real Rewards Credit Card - American Eagle
• L.L.Bean Rewards - L.L.Bean
• SLT Perks - Sur La Table
• Co-op Member Reward - REI
• When Will I Get Paid? - Rakuten
• American Express Membership Rewards Points FAQ - Rakuten
• Chase Sapphire Reserve - Chase
• Capital One Shopping Help
• SkyMiles Overview - Delta Air Lines