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.

Points 3: Starwood Preferred Guest American Express Card

The problem with collecting Aeroplan miles is that millions of other Canadians do too. So when it comes time to redeem that flight on Air Canada or one of its Star Alliance partners, you're competing with a lot of other people for a few seats. Of course you can always pay more points for "extra access", but that could end up costing more than twice as much as a regular award.

However, few Canadians belong to the plans of the major U.S. airlines – American, Delta, United, and US Airways – so flights from Canadian cities are often readily available at the lowest rate, typically 25K points for a return economy class flight in North America.

That brings me to the Starwood Preferred Guest (SPG) American Express card. Starwood is the chain that includes Sheraton and Westin hotels, among others, and SPG is their loyalty program. You earn 2 SPG points for every dollar spent at Starwood hotels (bonus offers let you earn faster) and free nights start at 2,000 points, with most hotels in the 7-10K range. For example, both the Sheraton Centre and Westin Harbour Castle in Toronto are 7K points for a free night.

The SPG Amex card earns 1 SPG point for every dollar spent. MBNA used to be Starwood's partner, and the card was no-fee, which was a terrific deal, but early this year they switched to Amex and now their card costs $120 a year. Given Amex's limited acceptance and the less generous insurance benefits, it's generally not as good a deal as the Aeroplan bank cards.

Except SPG has one really big advantage: you can trade its points one for one with almost any airline's. And if you swap 20K points, they give you a 5K bonus, resulting in 25K airline miles. This amounts to 1¼ miles for dollar spent. So if you have the annual spending to justify a $120 annual fee card, the 25% extra miles and ability to redeem with virtually any airline might make this card worthwhile to you.

You can apply online, there's a 10K point sign-up bonus, and you'll be automatically enrolled in the SPG program.

I accepted the card last spring because Amex waived the annual fee for former MBNA card holders for the first year. They also offered an 11K point sign-up bonus and my wife got a card too. We recently swapped 20K of those points for 25K American Airlines Advantage miles for free return flights from Palm Springs to Toronto.

I plan to cancel the card next year unless Amex lowers the annual fee (in the U.S. it's only $65 a year) or offers a hefty renewal bonus. Otherwise, it won't be worth it to me. I'll bring the Club Sobeys MasterCard out of mothballs and focus on earning free Aeroplan miles with it.

The SPG card enables you to benefit from membership in a host of airline plans. In Points 301 I'll explain why you should join the plan of every hotel chain you stay at as well.

Points 2: Earn Aeroplan Miles with No-Fee Credit Card

In Points 101 I began by saying I like to focus on travel rewards and highlighted three of the loyalty programs most popular with Canadians. Next I'd like to discuss credit cards that earn points and show you how you can earn travel without paying hefty annual fees.

Several Canadian banks issue credit cards that earn 1 Aeroplan mile for every dollar spent. And though they usually come with a sign-up bonus, they also carry an annual fee, generally in the $120 range (plus extra for secondary cards). Since I value an airline mile at about 1 cent (that's open to debate, but let's assume), the sign-up bonus can make the fee worthwhile for the first year, and even thereafter, if you spend over $25K a year. There are other benefits that come with these cards, such as travel insurance, that may have additional value for you, but if, like me, you're not a high roller and don't need those benefits, there's a free way to earn miles.

Remember how in Points 101 I mentioned you can earn Aeroplan miles by shopping at Sobeys? You do this by setting up your Club Sobeys account to automatically convert points to Aeroplan miles (2 Club Sobeys points equals 1 Aeroplan mile). But you can also earn points with a Club Sobeys MasterCard, issued by Bank of Montreal. It gives you 1 Club Sobeys point (equal to ½ Aeroplan mile) for every dollar you spend anywhere. And it's a no-fee card. So, pay $120 year for 1 Aeroplan mile per dollar spend, or pay nothing and get ½ Aeroplan mile per dollar spend. As I say, this could be a good deal if you're putting less than $25K a year on the card.

I got a few thousand Club Sobeys points/Aeroplan Miles when I originally signed up for the card about two years ago. It was issued by Citi Bank then, but this summer Bank of Montreal bought Citi's credit card business in Canada. Next month, I'll receive 2,600 Club Sobeys points (equalling 1,300 Aeroplan miles) when I get my new BMO Club Sobey's MasterCard and make a purchase with it, but you can cash in too. Club Sobeys and BMO have an introductory offer on right now. You'll get a welcome bonus of 2,000 Club Sobeys points/1,000 Aeroplan miles after making a single purchase with the card. You can apply online. Enter offer code CS1.

I carry the Club Sobeys MasterCard as a back-up when I travel, but haven't used it much. That's because I have a free card that earns even more Aeroplan miles (and miles on many other airlines besides, if I choose). I'll tell you about it in part 2.

So, if you're keeping track, I belong to PC points, but only incidentally; I don't actively collect. I don't collect Air Miles, mainly because of poor earning potential where I live. I belong to Club Sobey's, but only to earn Aeroplan miles. I have a Club Sobeys MasterCard, mainly for the sign-up bonuses. Aeroplan is a focus program, but I don't have the annual spending to make paying a $120 annual fee worthwhile when there are cheaper ways to earn miles.

Points 1: Canada's Favourite Points Programs

A couple of conversations with friends lately about my points and miles collecting hobby (obsession?) led to requests for me to post on the subject. So over the next few weeks, I'll try to cover the basics of how to get the most out of loyalty programs. Keep in mind, these are my preferences; they may not always be suitable for you, but I hope you'll find something of use here.

For starters, many points experts advise that you focus on one program so you can achieve rewards quickly. I take the opposite view. I believe in signing up for almost any program, focusing on several, and taking a patient, long-term approach. There are a number of reasons why, but one is that I collect with the goal of travel rewards (hotels stays and flights), rather than merchandise or cash-back rewards. That takes a lot of points and that takes time. I find the dream of travel to be more inspiring than cash-back, and the value of travel rewards greater than merchandise.

I'll begin by discussing three of the programs most popular with Canadians.

PC points are earned through a variety of activities with President's Choice Financial, chiefly through the use of its credit and debit cards. Points can also be earned through bonus offers at supermarkets that sell President's Choice products. Rewards come in the form of groceries and other products sold in the stores and are redeemed right at the checkout, using your credit or debit card. No separate membership card is required. Ease of earning and redeeming makes this program the right one for many people.

I do have a PC Financial chequing account, but not a credit card, so my point earning is minuscule. The reason I don't focus on this program is because $20 off groceries doesn't inspire me (see paragraph 2, above), and because I can use a different credit card at the supermarket to earn points in another program that has more value to me.

Air Miles can be earned through a variety of retailers and affiliated credit cards offered by the Bank of Montreal and American Express. It is perhaps the most popular loyalty card in Canada. It seems almost everyone has one. Except me.

The main reason Air Miles has little value to me is that few of their partners are located in my town, so I have little chance to earn. But if you're a BMO customer and can shop at Air Miles retail partners, this program can be valuable to you, especially if you like merchandise or grocery certificate rewards.

That brings me to Aeroplan. Though a separate company, Aeroplan is essentially Air Canada's frequent flier plan and offers reward flights not only on Air Canada, but also on its partners in the Star Alliance, such as United, US Airways, Lufthansa, Singapore, Air New Zealand, and many others. As well, points can be redeemed for hotel stays, car rentals, cruises, and merchandise.

Aeroplan miles can be earned through flights, retail and travel partners, and affiliated credit cards and other products at a range of financial institutions. Aeroplan's gas and grocery partners (Esso and Sobeys) are located in my town, and that's a big reason why I collect Aeroplan miles.

Next time, in Points 201, I'll take a look at points-earning credit cards, with the emphasis on earning points and miles without having to pay an annual fee.

Some People May be Offended (Seriously)

Hoo boy. This sure ain't gonna make me popular.

I'm here to argue in defence of the right to offend; to express views others find offensive; to do perfectly legal things that others may be offended by; even to be an obnoxious, stupid, loutish human being as long as you don't actually hurt anybody else.

I don't advocate doing it gratuitously; I just think that giving offence is not, and should not be, a crime.

Some recent cases have caused a global media feeding frenzy around the issue. One was the plan by some Muslims to build an Islamic centre a few blocks from Ground Zero. Another was the antics of Florida lunatic Terry Jones with his on again, off again plans to commemorate the ninth anniversary of the September 11, 2001 terrorist attacks on the United States by burning a Qur'an.

But unless you live in my neck of the woods, you probably haven't heard of this one: a group of extreme anti-abortion protesters lined a major thoroughfare in my hometown recently, displaying large photos of aborted fetuses. The graphic nature of the images upset a lot of people and the local council has directed township staff to see if there isn't some legal way to prevent them from doing it again.

Well, regardless of whether I think these activities are objectionable or even offensive, I have to say the Muslims, Mr. Jones, and the anti-abortion protesters should be allowed to do as they please.

Setting aside the American examples, our Charter of Rights and Freedoms guarantees Canadians "freedom ... of expression, including freedom of the press and other media of communication" (section 2, subsection b). Subsection c. guarantees us "freedom of peaceful assembly".

Now either these fundamental rights, entrenched in our constitution, mean something, or they don't. They aren't conditional on us finding the views expressed agreeable and inoffensive. They're there precisely to protect the rights of those with unpopular views.

As those of you who know me will readily attest, I'm easily offended. Lord knows there's plenty of human folly and wickedness to keep me outraged a good part of my waking hours. But I don't expect the government to pass laws making such activities illegal. I wish it would, but I'm not holding my breath (chiefly because it's frequently various levels of government that have incurred my ire).

No, what I do is, I try to get on with my day. If that doesn't work, I blog. It's cheaper than therapy.

I don't wish to be insensitive. I acknowledge that such images are disturbing, and yes, offensive to many people. And I do believe that freedom of expression is not absolute. For example, we do have provisions in the criminal law of Canada against hate speech. And that seems to me a sensible, if not always easily discernable place to draw the line.

But the case of the anti-abortion protesters in Port Perry is not about that. These are people with an extreme view expressing it in an extreme way. That offends many other people. But that shouldn't be a crime.