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ArticlesReward points are units earned under a credit card loyalty programme for eligible spending or other qualifying activity. Their real value depends on how many points you earn, what each point is worth when redeemed, caps or exclusions, expiry rules and the card’s fees. A high points-earning rate does not automatically mean a high-value rewards card.
How do reward points work?
The issuer defines an earn rate for eligible transactions. Points accumulate in a rewards account and can usually be redeemed through the bank’s programme for options such as statement credits, travel, vouchers, merchandise, miles conversion or partner benefits. Available options vary by programme.
Earn rate vs redemption value
| Concept | What it tells you |
|---|---|
| Earn rate | How many points you receive for a given amount of eligible spend. |
| Redemption value | How much financial value those points produce when redeemed. |
| Effective reward rate | The approximate value received relative to the spend required to earn the points. |
Example: calculate the value, not just the points
Illustration only: if AED 1,000 of eligible spend earns 2,000 points and 2,000 points can be redeemed for AED 20 of value, the effective reward value is about 2% for that transaction set. If the same 2,000 points are worth less under another redemption option, the effective value falls.
Why point values can differ
- Different redemption categories can value the same number of points differently.
- Some programmes have minimum redemption thresholds.
- Points may expire after a defined period.
- Transfers to airline or partner programmes can have separate conversion rates.
- Promotional earn rates may apply only to selected categories or periods.
What spending may not earn points?
Issuers set their own exclusions. Common excluded categories can include fees, finance charges, cash advances, balance transfers, certain government payments, wallet loads or quasi-cash transactions. The merchant category code can also affect category-based rewards.
How to compare two rewards cards
- Estimate points using your real monthly spending by category.
- Convert expected points into a realistic redemption value.
- Check caps, exclusions and expiry.
- Subtract annual fees or other costs that matter to you.
- Consider whether you will actually use the available redemption options.
- Do not value a travel or lifestyle benefit at full face value unless you would otherwise pay for it.
Disclosure of reward promotions
CBUAE Consumer Protection Standards require the terms and restrictions of rebates, gifts and other incentives to be disclosed clearly. Read the current reward programme terms alongside the KFS, particularly when a headline earn rate is promotional or category-specific.
Frequently asked questions
How much is one reward point worth?
There is no universal value. It depends on the issuer and redemption option.
Do reward points expire?
They can. Check the programme’s current expiry policy.
Do all card purchases earn points?
No. Issuers can exclude transaction types or apply different earn rates.
Are points better than cashback?
Neither is automatically better. Compare the effective value, flexibility, caps, fees and how you actually redeem rewards.
Can reward points lose value?
Programme terms and redemption values can change subject to the issuer’s rules and required notice. Check current terms before relying on a historical value.