New Air Miles Cash feature costs collectors more

The new Air Miles expiry policy caused a stir when it was introduced last week, but an upcoming change to the program could have a bigger impact on how you redeem your reward miles.  

A new feature called Air Miles Cash will be rolled-out in March, 2012.  Here’s how it works:

Air Miles Cash and Dream Balances

Air Miles Cash is a new program that allows collectors to redeem reward miles instantly at checkout towards everyday purchases at participating sponsors like Metro, Shell, Rona, Rexall / Pharma Plus and Jean Coutu.

With this change, your current reward miles now exist inside your Dream balance, and can still be used to redeem for travel and merchandise. 

Air Miles now gives you the flexibility to choose how you want to allocate your reward miles. You can earn just towards your new Air Miles Cash balance, both your Air Miles Cash and Dream balances, or do nothing and keep earning inside your Dream balance.

Getting Started

It’s easy to get started once you log in to your Air Miles account online. Choose to have all of your future reward miles go towards your Cash balance, or allocate a percentage to go towards both your Cash and Dream balances.

If you’d like all the reward miles you earn from now on to go towards your Air Miles Cash balance, log-in to your Air Miles account, select the Cash balance option, follow a few simple steps and you’re ready to go

It’s important to note that you’re not transferring your current reward miles; you’re choosing how they’ll be allocated from now on.

Redeeming Your Cash and Dream Balances

Once your Air Miles Cash balance reaches 95 reward miles, you can redeem for $10 off your bill at participating sponsors when you swipe your Air Miles collector card at check-out.

Redeeming reward miles for gift cards and certificates will eventually be phased out and replaced by the new Air Miles Cash balance feature. 

One of the best Air Miles rewards was the $20 Shell fuel certificate, which cost 175 reward miles.  This option no longer exists in the Dream rewards catalogue, so collectors will need to use 190 reward miles from their Cash balance to redeem for the same $20 in gas rewards. 

These new changes will put an emphasis on instantly redeeming for rewards at check-out rather than hoarding them for years saving for a dream vacation. 

Air Miles claims they just want collectors to use their reward miles. Unfortunately for collectors, the reward miles program is being devalued in the name of convenience.

Also Read:

Air Miles helped cut my gas costs by 20 per cent

With Air Miles, you use them or lose them in 5 years

Robb Engen is half of the Boomer & Echo personal finance blogging team with his mother, a former financial advisor.  Reach him at robbengen@gmail.com