By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: Redeeming points for merchandise, electronics, or experiences through a bank portal almost always returns well under a cent per point, making it one of the worst ways to use rewards. You would be better off buying the item with a cash-back redemption and keeping your travel points for travel.
Why merchandise is a trap
Bank merchandise portals tend to price points below a cent each, sometimes far below, so a gadget that costs cash plus points or a big points total is usually a bad deal versus simply buying it. The points lost their travel ceiling the moment they went toward stuff. This is consistently rated among the very worst redemption options. See what points are worth.
The better comparison
Before redeeming for an item, check what the same points return as travel, and what the item costs in cash. Almost always, transferring the points for travel and paying cash for the item comes out ahead. The convenience of the portal is not worth the lost value. See transferable points explained.
What to do instead
Keep transferable points for partner transfers and buy merchandise with money, ideally on a card that earns rewards on the purchase. If you want a points-funded purchase, a flat cash-back redemption at a cent beats a merchandise portal below a cent. See when cash beats points.
Frequently asked questions
How much are points worth for merchandise?
Usually well under a cent each through a bank shopping portal, making it one of the worst redemption values. Travel transfers can return several cents per point by comparison.
Why is redeeming points for merchandise bad?
Because the portal prices points below a cent, so you give up most of their value. Buying the item with cash and keeping your points for travel almost always comes out ahead.
What is a better alternative to merchandise redemptions?
Transfer points to a travel partner for a high-value redemption and pay cash for the item, or if you want a points-funded purchase, use a flat cash-back redemption worth a full cent.
Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.
