Is Selling Loyalty Points Safe in Canada?
If you're considering selling your Aeroplan, Amex Membership Rewards, or Marriott Bonvoy points for cash, you probably have questions about safety and legality. This guide covers everything Canadian consumers need to know.
Thousands of Canadians sell their loyalty points every year to convert unused rewards into cash. But is it safe? Is it legal? What are the risks? We'll answer these questions honestly and help you make an informed decision.
Quick Answer:
Yes, selling loyalty points is safe and legal in Canada when done through a reputable broker using official transfer methods. The main considerations are: (1) it may violate the program's terms of service, (2) you should never share your account password, and (3) you need to avoid scam operators by verifying broker legitimacy.
Is Selling Loyalty Points Legal in Canada?
Let's separate two different questions that often get confused:
Under Canadian Law: Completely Legal
There is no Canadian law that prohibits selling, buying, or trading loyalty points. You own your points as personal property and can dispose of them as you wish. The Canada Revenue Agency hasn't even issued definitive guidance on taxation of loyalty point sales, indicating how low-priority this issue is from a legal perspective.
Under Program Terms: Technically Prohibited
Most loyalty programs (Aeroplan, Amex MR, Marriott Bonvoy) include terms stating that points cannot be sold or transferred for cash. However, this is a private contractual agreement between you and the company—not a law. Violating these terms doesn't create legal liability; the worst case is the program could close your account.
Bottom line: Selling points is legal. It may breach a company's terms of service, but this is a civil matter between you and that company, not a criminal or regulatory issue.
Will My Account Be Closed If I Sell Points?
This is the most common concern Canadians have about selling points. Here's the realistic assessment:
Aeroplan (Lowest Risk)
Aeroplan's Family Sharing feature is designed to let members pool points with family. When you use this official method to transfer points, it doesn't raise immediate red flags because it's a legitimate program feature.
Risk level: Low for occasional sellers using Family Sharing. Higher if you repeatedly add and remove "family members" or sell massive quantities.
Amex Membership Rewards (Low Risk)
When you transfer Amex MR points to an airline partner (like Aeroplan), this is a normal, expected use of the program. American Express can't see what happens to points after they leave your account.
Risk level: Low. Amex can't track what you do with points once transferred to a partner program.
Marriott Bonvoy (Moderate Risk)
Marriott allows member-to-member transfers but charges a fee and has stricter oversight. Repeated transfers to the same account could potentially trigger review.
Risk level: Moderate. Marriott actively monitors transfers. Best for one-time or occasional sales.
Practical Reality:
Account closures specifically for selling points are relatively rare. Programs are more concerned with fraud (stolen accounts, fake identities) than individuals selling their legitimately earned points. Most people who sell points once or occasionally have no issues.
How to Sell Your Points Safely
Follow these guidelines to minimize risk and ensure a safe transaction:
1. Never Share Your Password
Legitimate brokers will NEVER ask for your login credentials. You should always initiate transfers yourself through official program websites. If anyone asks for your password, it's a scam.
2. Use Official Transfer Methods
For Aeroplan, use Family Sharing. For Amex MR, transfer to airline partners. These are built-in program features that provide a legitimate paper trail.
3. Verify the Broker
Choose established Canadian brokers with verifiable business presence. Look for: years in operation, physical address, Canadian phone number, and use of Interac e-Transfer for payments.
4. Get Everything in Writing
Ensure you have email confirmation of the agreed rate, point quantity, and payment timeline before initiating any transfer.
5. Accept Interac e-Transfer Payment
Interac is Canada's trusted payment network. Funds are deposited directly to your bank account, and there's a record of the transaction. Avoid brokers who only offer wire transfers, cheques, or cryptocurrency.
Red Flags: How to Spot Scam Brokers
Unfortunately, scam operators exist in the points market. Here's how to identify them:
They ask for your login password
Instant red flag. No legitimate broker ever needs your account credentials.
They require upfront payment
You should never pay money to sell points. The broker pays YOU.
Rates are too good to be true
Market rates are 1.0-1.5 cents for Aeroplan and 1.1-1.55 cents for Amex MR. If someone offers 2.5-3 cents per point, it's likely a scam to collect your points without paying.
No verifiable business presence
Anonymous operators, foreign companies with no Canadian presence, or those who refuse to provide business details are high-risk.
Pressure tactics
"Transfer in the next hour or lose this rate!" Legitimate brokers give you time to review and decide.
Sell Your Points Safely with Mega Miles Broker
Mega Miles Broker has helped over 10,000 Canadians sell their loyalty points since 2014. Here's why customers trust us:
- Canadian-owned and operated with Toronto headquarters
- Never ask for passwords - only official transfer methods
- Interac e-Transfer payments within 24 hours
- 10+ years in business with transparent processes
- No upfront fees - we pay you, not the other way around
Frequently Asked Questions
Is it legal to sell loyalty points in Canada?
Yes, selling loyalty points is legal in Canada. There is no Canadian law that prohibits the sale of loyalty program points. However, it may violate the terms of service of the loyalty program itself, which is a private agreement between you and the company, not a legal matter.
Will my account be closed if I sell my points?
While loyalty programs technically prohibit selling points in their terms of service, account closures for selling points are relatively rare, especially when using official transfer methods like Aeroplan Family Sharing. The main risk is if you sell repeatedly or in suspicious patterns that trigger fraud detection systems.
How do I know if a points broker is legitimate?
Legitimate Canadian brokers: (1) never ask for your account password, (2) never require upfront payment from you, (3) use secure payment methods like Interac e-Transfer, (4) have verifiable Canadian business registration, (5) offer rates within market norms (1-1.5 cents for Aeroplan, not 3+ cents), and (6) have been operating for multiple years.
What is the safest way to transfer points when selling?
For Aeroplan, use the official Family Sharing feature which allows free transfers to designated family members. For Amex MR, transfer to an airline partner account specified by the broker. Never share your login credentials or password with anyone.