[byoung2]

As a business owner I rack up miles with business expenses. Hosting, services (ups mailbox, ring central, etc), phone, Internet, and paying my offshore team with pay pal earns me 75,000 miles a year.

On the personal side, rewardsnetwork lets me earn up to 5 miles per dollar at participating restaurants. Since my fiancee and I don't cook we earn quite a few miles this way too.

[mgkimsal]

75000 airmiles would be redeemed for 2 or 3 flights in most cases. depending on what flights and when you bought the tickets, this might be a decent savings (assuming you can even redeem them for the dates you need or not). to get that, you're probably spending $40k per year assuming $1=1pt with some bonuses.

3% merchant fees on that $40k is $1200. The cost of a couple flights is probably a few hundred to $1000 or so. Even at regular merchant rates they may still turn a profit, cause most people won't redeem points. But they'll charge a merchant higher fees for the rewards card anyway.

You're already spending $40k - understood. Most people aren't, and are enticed in to spending more than they should to get 'free' stuff. Insane.

[toephu]

it's all marketing genius by the credit card companies