Points 4: Double-dipping

A faithful blog reader asks, "What about double-dipping?"

A very good question. So, before we continue with the advanced course material on hotel loyalty programs in Points 301, I'll explain how "double-dipping" can earn you extra credit (pun intended).

Essentially what points hounds mean by double-dipping is getting two sets of points on the same transaction, and it's a powerful strategy for padding your point and mile balances. For example, if I use a credit card that earns points, at a retailer that offers points, I'm getting points twice for the same purchase. In fact, the banks that issue Aeroplan VISA cards encourage this and point to it (groan) as an added benefit of their cards. They further encourage double-dipping with frequent bonus point promotions. For example, CIBC is currently offering to double the points earned when purchasing tickets on Air Canada. Earning bonus points while you're double-dipping might even be considered "triple-dipping".

So say you buy gas at Esso, using your CIBC Aeroplan VISA card, and you present your Aeroplan card. You earn 1 point per dollar because you used your credit card, and another point for every $3 dollars in gas because Esso is an Aeroplan retail partner. In effect, you earn 1 and 1/3 points per dollar you put on your card at Esso. You can make this easier for yourself and earn an extra 200 Aeroplan miles if you sign up for a Speedpass and link you credit card to your Aeroplan account. It's actually not as complicated as it sounds and here's the website that explains it all.

But it works with any point-earning card. You can earn AirMiles at the LCBO, or Shell, or Metro grocery stores, as well as Aeroplan miles, if you use your Aeroplan-branded credit card and present your AirMiles card at these (and other) AirMiles retail partners.

The same goes for the Club Sobeys BMO MasterCard I told you about in Points 201, part 1. You not only earn ½ Aeroplan mile for every dollar spent, but when you present your Aeroplan card (at Esso, or Home Hardware, for example) or AirMiles card, you earn those points too.

That means using the no-fee Club Sobeys MasterCard at Sobeys earns 1 Aeroplan mile for every dollar: you receive 1 Club Sobeys point for every dollar in groceries, which transfers into ½ Aeroplan mile, plus ½ Aeroplan mile for every dollar you put on the card.

If I shop at Sobeys and I use the SPG Amex card I told you about in Points 201, Part 2, (which I always do) and then transfer to Aeroplan and receive the 25% bonus, I'm getting 1 and 3/4 Aeroplan miles per dollar spent. Yes, I dipped, and then I dipped again.

In Points 301, I'll explain why you should sign up for multiple hotel and airline loyalty programs.