Credit card rewards programs are facing increased scrutiny as annual fees climb and redemption rules become more restrictive. Issuers, such as American Express, are seeing significant revenue from these fees, with card fee net revenues up 15% year-over-year to $2.86 billion in Q2 2026. However, consumers are finding it harder to justify these costs, especially as loopholes for maximizing statement credits, such as buying gift cards, are being closed.
This shift is partly by design, as issuers aim to filter out less affluent cardholders who may overcrowd perks like airport lounges. The goal is to retain highly committed, affluent customers who are more likely to maximize their spending on premium cards. However, this strategy risks alienating younger professionals, like Gen Z and millennials, who could become high-value customers in the future. Issuers are encouraged to develop attractive mid-tier cards to foster long-term loyalty.
The value of rewards points also varies significantly. As of September 2026, The Points Guy values Bilt points as the most valuable transferable rewards currency at 2.2 cents per point, followed by Chase Ultimate Rewards at 2.05 cents, and American Express Membership Rewards at 2.0 cents. Despite these valuations, the actual process of redeeming points can be complicated, leading to a significant amount of rewards going unclaimed. In 2022, 82 cents out of every dollar in earned rewards went unclaimed, a 40% increase from 2019, highlighting the complexity and frustration consumers face with these programs. Statement credits, while simpler, often offer a lower redemption value, for instance, 1 cent per point compared to 1.5 cents for travel redemptions.
