When Carlye Siegel tries to book two award tickets with points, she gets a Chase Rewards error message — and the transaction fails. Now Chase won’t refund the points. Is that allowed?
Question
I recently tried to use my Chase points to book an airline ticket on Aeromexico. After seeing and confirming the availability of an award flight on its partner airline, Virgin Atlantic, I made two transfers of 37,000 Chase points to Virgin Atlantic to book the flight.
When I went to click “purchase,” I received a message that I could not complete the booking because of a Chase Rewards error.
I called Virgin, which said Aeromexico had not released the flight to them, and there was no button they could push to book the flight, despite it being advertised in multiple locations, including their website.
I tried to get the points refunded, but Chase now says it can’t return the points to my account. Can you help me? — Carlye Siegel, Chicago
Answer
Chase is right — and wrong. Yes, the points only go one way. But there are times when rules like that shouldn’t apply.
For the uninitiated, here’s how these transfers work: You earn points by making purchases on your credit card. Then you transfer those points to the airline loyalty program. And as I’ve already mentioned a few times, once you push the button on those transfers, there’s no going back. (Related: She blamed Chase for draining $2,730 from her account, but it was a cash flip scam.)
Chase points transfers are almost always irreversible, but the actual rules are a little confusing. You have to refer to the Chase terms and conditions and also to your airline and partner airline to figure out your rights. As I reviewed the correspondence between you, Chase and Virgin Atlantic, it appears both had policies that made the points only go one way, and it looks like both your credit card company and airline were sticking to their terms. (Related: Help! Chase Ultimate Rewards downgraded my flight — and then canceled it.)
It’s really difficult to read your interactions with Chase and Virgin Atlantic. You calmly explained that there was a Chase Rewards error, most likely made by the third party, Aeromexico. But neither company would help you fix the problem — you had spent 74,000 Virgin Atlantic points but received nothing in return.
Are Chase Rewards worth collecting?
Your case brings up a bigger question: Should you even bother collecting rewards with your credit card?
There’s no denying the allure of Chase’s Ultimate Rewards program. With promises of free flights, luxury hotel stays, and cash back, it’s easy to get starry-eyed. But before you start chasing those points, here’s what you need to know:
- Annual fees add up. Many of Chase’s premium rewards cards come with hefty annual fees, sometimes outweighing the benefits for average spenders.
- Points can lose value. Chase has been known to devalue points without warning, meaning your hard-earned rewards might not stretch as far as you’d hoped.
- Spending temptation. Your quest for points can lead to overspending, negating any potential savings from rewards.
- Interest rates. If you’re not paying off your balance in full each month, high interest rates will quickly erase any rewards value.
- There are limits. Blackout dates, seat restrictions, and expiration policies can make redeeming points a headache.
There’s no doubt that credit card rewards are great for the credit card company. You’re paying for the point with your annual fees, late fees and swipe fees — and the credit card company is kicking a little bit back to you. Credit cards earn billions a year on this scheme. (Related: Chase said her identity had been stolen, but it was a Zelle callback scam.)
But are they really a win for consumers? I have a few thoughts on that in my guide to loyalty programs. When it comes to Chase’s popular rewards offerings, the answer isn’t so clear-cut.
Savvy travelers who pay off balances and strategically use their cards can find real value in these cards. But it’s important to do the math and understand the true costs. There’s nothing about credit card rewards that’s “free.”
Maybe you shouldn’t have been collecting Chase Rewards
My best advice for avoiding this kind of problem is to avoid using a complicated rewards program. Buy your ticket instead. This will help you avoid another Chase Rewards error. Remember, the only real winners are the credit card companies and airlines.
An appeal to a higher level might have helped you get a faster resolution. I list the names, numbers and email addresses of the customer service executives at Chase and Virgin Atlantic on this site.
I contacted Chase on your behalf. It refunded your points.
