Key Takeaways: Exercise caution with linked loyalty accounts

As the managing editor for credit cards at TPG, I take pride in maximizing my credit card points and miles. Every Thursday, I have a routine of reviewing my card accounts.

One of my preferred cards is the American Express® Gold Card, which provides up to $10 monthly in dining credits (totaling $120 per year in statement credits) with select merchants like Grubhub (enrollment is necessary). To fully benefit from this perk, I ensure I place an order each month.

So, you can imagine my shock and dismay when I checked my Amex account and discovered that I had inadvertently redeemed nearly 4,000 Membership Rewards points for my Grubhub order.

My redemption blunder

I made a $27 order for bao on a lazy Sunday. Unfortunately, my laziness led me to accidentally choose the option to pay with points.

Considering TPG values Amex points at 2 cents each, I would never — I emphasize never — spend 3,979 points on a $27 order. That equates the points to just 0.68 cents each, about a third of their true worth.

Booking flights directly through American Express Travel offers a better return, valuing points at 1 cent each.

When I noticed the error in my Amex account, I felt extremely frustrated with myself. I reached out to Amex and Grubhub, but neither would refund my points.

Ways to prevent making the same error again

Linking your credit card points to specific merchants during checkout has its benefits. It streamlines the transaction, so you don’t have to dig out your card for every purchase.

Furthermore, Amazon occasionally provides discounts on products when you redeem points from card issuers like Chase, Citi, and Amex. If you qualify for these promotions, the terms may allow you to use 1 point for 1 cent in value to activate the discount. You can then complete the rest of your purchase using your credit card as usual.

Yet, when making purchases on Amazon or similar platforms like Grubhub, you typically won’t receive good value for your points unless there’s a specific promotion.

Before completing your checkout, make sure to uncheck the option to redeem your points.

For my upcoming Grubhub orders, I intend to take an extra step by entering "0 points" and clicking "Apply" to confirm that I’m not utilizing any of my points.

Key Takeaway

It was disheartening to watch nearly 4,000 points — valued at around $80 to me — wasted on such a trivial purchase. Those same points could have been transferred to Delta SkyMiles for a potential Delta award flight instead.

If you have connected loyalty accounts with merchants that permit payments using rewards, take a moment to verify that you won’t accidentally use any of your points for a purchase.