Canadian card points value compared

How do you calculate cents per point from a published rate?

Start with a redemption that has a published points price and a known cash value, divide the cash value by the points, then multiply by 100. The U.S. Membership Rewards terms supply deposit rates that work this way: 1,000 points for an $8 deposit comes to 0.8 cents per point [10]. A separate rate applies to an American Express Business Checking account with a linked Business Platinum Card, for up to the first 1,000,000 points per calendar year, after which the rate returns to 1,000 points for $8 [10].

Because each option has its own points price, a single headline figure for a whole programme hides more than it shows [10]. The calculation has to be repeated for every redemption being compared.

Two mechanics decide what the cash value actually is. Under Pay with Points, the purchase is charged to the card, the points are deducted and a statement credit is applied for the points used, with any shortfall left on the card [10]. A statement credit redemption must be worth at least $1 [10], and for Cover your Card Charges the eligible charge must occur in the U.S. or a U.S. territory and be at least $1 [10].

Which redemptions set a baseline and which depend on the award price?

BMO Rewards, a Canadian programme, lists several destinations for its points. They can be redeemed through the BMO Rewards catalogue for merchandise and for gift cards from a range of brands [5]. Pay with Points applies points directly to eligible purchases and can cover eligible travel purchases such as flights, hotels, car rentals, vacation packages and cruises [5]. Points can also be redeemed for a contribution to a BMO savings or investment account [5]. Since the same balance can be spent in any of those ways, the value comparison has to be made per redemption rather than per card [5].

Options with a fixed, published exchange rate, such as the deposit rates above, are the closest thing to a floor: the same number of points always produces the same cash figure while that rate holds [10]. Options that run through a partner programme behave differently, because the partner sets its own award levels and can change them, together with blackout dates and capacity controls, at any time [10]. A transfer therefore has no guaranteed cents-per-point outcome at the moment the points move [10].

The earn side matters just as much. In the U.S. terms, card members earn one point for every dollar of spend on an eligible purchase, and the exclusions include cash advances and cash equivalents, balance transfers, fees and interest charges, and purchases covered by points [10]. Earn rate and redemption rate have to be read together, because a point collected at one rate and spent at another gives a different answer from a programme where both are fixed [10].

How do transfer partners and fees change the result?

A transfer moves points into an airline or hotel programme, where that programme's own rules then apply [10]. In the U.S. Membership Rewards terms the transfer rate varies by partner [10], the minimum is usually 1,000 points in multiples of 1,000 [9] [10], and processing typically takes 48 hours, although some programmes delay posting to the partner account [9] [10]. Transferred points cannot be converted back into Membership Rewards points [9] [10].

Fees reduce the result. A transfer to a U.S. airline frequent flyer programme carries an excise tax offset fee of $0.0006 per point, capped at $99 [9] [10]. Deduct that amount from the cash value of the miles received before dividing by the points spent, otherwise the cents-per-point figure overstates the return [9] [10].

Access conditions apply as well. The rewards account must first be linked to a partner account held in the member's name, or in the name of an additional card member whose card was issued at least 90 days earlier [10]. Where the only card product linked to the rewards account is a Legacy Card, the transfer option is not available [10].

Exceptions and limits

• Scope of the estimates. Values here are worked from published redemption rates; taxes and fees are excluded unless stated, and dynamic pricing, availability and promotional rates can change the result [10].
• Programme changes. American Express may change the number of points required to redeem a reward, change earn rates, impose caps or fees, and cancel the programme with at least 90 days' notice [10].
• Reversals. A transfer cannot be reversed and the partner programme's terms govern the points once they arrive [10]; a Pay with Points redemption also cannot be reversed once made [10].
• Who can redeem. Corporate Card Members cannot use points for a statement credit [10], and statement credits cannot be used to pay the minimum payment due [10].
• Where the fee applies. The excise tax offset fee is charged on points transferred to a U.S. airline frequent flyer programme, and the terms describe it as offsetting the federal excise tax American Express pays on the transfer [9] [10].
• Canadian scope. BMO Rewards and the U.S. Membership Rewards programme are the two programmes covered on this page; airline award charts and other Canadian bank programmes are outside this comparison [5] [10].

Frequently asked questions

Does a Canadian credit card point have a fixed value?

No. BMO lists several redemption categories for its rewards points, from merchandise and gift cards to travel and a savings contribution [5], and the U.S. Membership Rewards terms state that the value of points varies according to how they are used [10].

How do I compare a statement credit with a transfer to an airline programme?

Work out each option separately. A statement credit produces a cash figure you can divide by the points spent [10], while a transfer is priced by the partner, whose award levels, blackout dates and capacity controls can change at any time [10]. A transfer to a U.S. airline also carries the excise tax offset fee [9] [10].

What does the excise tax offset fee cost per point?

It is $0.0006 per point, capped at $99, on points transferred to a U.S. airline frequent flyer programme [9] [10]. At that rate, 1,000 transferred points carry a fee [10].

Why do the same points give different values on different redemptions?

Because every option has its own points price. In the U.S. terms, the deposit rate is 1,000 points for $8 at the standard rate, with a different rate for a Business Checking account linked to a Business Platinum Card up to 1,000,000 points per calendar year [10].

Are taxes and surcharges on the travel itself included?

No. Cents per point is calculated from the points price and the cash value of the redemption; the excise tax offset fee on transfers to U.S. airline programmes is stated separately at $0.0006 per point, capped at $99 [9] [10].

Related pages

Programme comparison: Canadian card points programmes compared. Background: what are miles worth? and cents per point. Before converting a balance: when not to redeem. Glossary: all frequent flyer terms.

Sources

Sources checked on 18 October 2026. The programmes covered are BMO Rewards and the U.S. Membership Rewards programme; Air Canada Aeroplan, AIR MILES and other Canadian bank and airline programmes are not covered here.

1. BMO Rewards credit cards and redemption options, checked 18 October 2026
2. American Express Membership Rewards terms: transfer to partner loyalty programs, checked 18 October 2026
3. American Express Membership Rewards program terms and conditions, checked 18 October 2026