Want to sell your airline miles? Here's why it's a bad idea
Usually, TPG readers are primarily concerned about how to earn more miles or redeem miles for maximum value. But occasionally, we get a reader question about whether you can sell airline miles.
For example, TPG reader Doug F. recently wrote in asking:
"I have been told I can sell my 170,000 United miles. Where can I find if this is true and a reputable company if it is?"
If you search online, you'll find various airline miles brokers and airline points brokers willing to pay you cash for your travel rewards. That said, I don't recommend selling your miles for a multitude of reasons.
Here's what you need to know, including other ways to get value from airline miles you don't want.
Why it's a bad idea to sell airline miles
TPG reader Doug F. specifically asked about selling United miles. So, let's look at the United MileagePlus program rules to understand one of the primary reasons it is a bad idea to sell airline miles.
Point 31 of the program rules specifically allows MileagePlus members to book awards "in the name and for the use of any other person." However, there's a section entitled "prohibition of sale or barter" earlier in the program rules that states:
"The sale, barter or other transfer or attempted sale, barter or other transfer of any mileage, certificates, PlusPoints, awards, benefits or status, other than as authorized and/or sponsored by United, is expressly prohibited. Any mileage, certificates, PlusPoints, awards, benefits or status sold, bartered or otherwise transferred is in violation of the Rules and any accounts or Members involved in such sales, barters or other transfers may be subject to United’s Remedies. The acquisition, use, transfer or attempted acquisition, use or transfer of mileage, certificates, PlusPoints, awards, benefits or status that have been acquired by purchase, barter or other transfer in violation of the Rules may result in United’s exercise of United’s Remedies."
So, you can redeem your miles to gift someone an award flight. But selling United miles or awards — and buying United miles or awards — is prohibited except as specifically authorized or sponsored by United.
If you're wondering just how bad it might be if United catches you buying or selling miles or awards, let's take a look at "United's Remedies" in the program rules:
- Termination of your United MileagePlus account, including any United MileagePlus Premier status or United Million Miler status.
- Removal or cancellation of any or all accrued United miles, Premier qualifying credits, lifetime miles and any pending or outstanding award redemptions, certificates or benefits.
- The confiscation of award tickets or denial of boarding at the airport.
- Loss of other United MileagePlus program benefits.
These remedies might sound terrible if you enjoy United MileagePlus elite status, get excellent value from United miles or have accrued a massive mileage balance with United. If you only have a modest amount of miles and don't plan to use the program in the future, these remedies might sound worth the risk if you can get some cash in your pocket now.
However, the above remedies aren't the end of the possible negatives that could result from selling or buying miles or awards. In particular, United's program rules go on to note:
In addition to the foregoing United’s Remedies, United may, upon written request, require the Member to repay the value, as determined by United, of the awards redeemed, certificates or benefits acquired as a result of Prohibited Conduct.
The program rules for each loyalty program are different. Most, if not all, major loyalty programs have rules against buying and selling rewards. And many loyalty programs have algorithms and procedures to flag suspicious redemptions.
Although getting caught selling travel rewards might sound unlikely, it's not a risk I'm willing to take. Major loyalty programs have gone after members for selling travel rewards before, and travelers who sold only one or two award tickets may still face severe consequences.
It's also possible that a mileage broker may use your miles and not pay you. In this case, you wouldn't have much recourse since you were going against the loyalty program terms and conditions by attempting to sell your miles.
Related: How 4 TPG reporters would spend 1 million United miles
Other options besides selling travel rewards
Selling your travel rewards is usually a risky idea. If you're looking to sell airline miles for cash, instead consider the following options that your program may offer:
- Share or transfer your points or miles to other members through program-approved methods. Some programs, including Hilton Honors and World of Hyatt, allow you to do so for little or no fee.
- Donate your points or miles. For example, United allows you to donate miles to various charities, including Miles4Migrants.
- Transfer your points or miles to a partner program. For example, you can transfer Wyndham Rewards points to Caesars Rewards and IHG One Rewards points to many airline programs.
- Redeem your points or miles for cash-back rewards, gift cards, magazine or newspaper subscriptions, shopping or upgrades.
Some of these options let you give the gift of travel to a friend or family member, while others let you squeeze a bit of value from your travel rewards in a program-approved manner. If none of these options are appealing — or available with your program — consider using your rewards to book a trip with family or friends.
Related: What to do with small points and miles balances
Bottom line
Selling your points or miles is clearly against the terms and conditions of most, if not all, loyalty programs. Although I've booked awards for friends and family as a gift — with nothing given or expected in return — I wouldn't barter or sell my rewards. It's just too risky, especially with many programs monitoring account activity and looking for suspicious redemptions.
In short, the money you might get for selling your points or miles isn't worth potentially losing your account and needing to pay the loyalty program thousands of dollars.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.