How to gift and donate credit card rewards

Credit card rewards are incentives provided by credit card companies to encourage spending. These rewards come in various forms, such as cash back, points, or miles, which can be redeemed for a variety of benefits, including travel, merchandise, or statement credits.

Certain cardholders may find themselves with an abundance of rewards and may want to give them away to friends, family, or charitable organizations. This article will explore whether it’s possible to gift or donate credit card rewards, and how to safely do so.

How to gift credit card rewards

Generally, rewards providers do not allow direct transfer of rewards or points to another person. However, some programs may let users transfer to a family member when that person also has an account with the same provider. Ability to do so may depend on the rewards offered, each person’s account, and the provider terms and conditions. Be sure to review program terms or reach out to the provider’s customer support for specifics to one’s rewards program.

When direct transfer is not available, there are other ways to gift the rewards – though indirectly. For example, some credit card rewards programs offer miles or points for travel or lodging. Hotel rewards or airline rewards programs may allow direct transfer of miles or points to another user, meaning if someone wanted to gift their rewards they could redeem their credit card rewards as miles or points and transfer those to the person they want to gift to.

Alternatively, one could redeem their rewards to make a purchase for someone else. This could be booking a flight for a family member with reward miles or redeeming points for a gift card.

Some rewards programs may offer the option to pool points with others. By combining points, people can collectively redeem larger rewards with friends and family, such as group travel arrangements.

How to donate rewards, points, or miles to charity

Donating rewards or points to charitable organizations can allow earned points or miles to benefit those in need. There are various ways to do this:

• Travel credit: Charities might use donated points or miles to cover travel expenses for the less fortunate.
• Cash value: In some instances, rewards issuers can convert points into cash before sending the equivalent amount to the charity. For example, PayPal Rewards users can donate their rewards to causes they care about via PayPal Giving or searching the fundraiser hub.
• Funding specific projects: Some charities allow donations of points to fund specific projects. For example, rewards could be used to transport goods and supplies directly to an affected area.
• Auction donations: Some organizations run auctions where donated points or miles are used as prizes. This can help raise additional funds for the charity through bidding wars.

What safety precautions should be considered when gifting or donating rewards?

When gifting or donating rewards, keep payment and data safety in mind to ensure secure and successful transactions. Here are some safety measures to consider:

• Verify recipient's information: Before transferring rewards, double-check the recipient's account details. Ensuring that account information is accurate helps prevent rewards from being sent to the wrong person. Always avoid sharing sensitive information, such as account numbers or passwords.
• Utilize two-factor authentication (2FA): Two-factor authentication (2FA) adds an extra layer of security to accounts. It requires a second form of verification beyond just a password. This could be a text message code, a passkey, or an authentication app.
• Avoid sharing login credentials: Sharing login credentials to transfer points or rewards typically violates the terms of most credit card programs. This also avoids the risk of charity scams and other forms of fraud. Using shared logins not only risks account security but also can lead to potential loss of rewards or penalties.