The transfer ratio is the rate at which one programme's points convert into another currency, such as one to one or three to one.
The transfer ratio is the rate at which one programme’s points convert into another currency, such as one to one or three to one.
Also called: Conversion ratio.
How it works#
The transfer ratio decides whether a point still holds its value after conversion. A one-to-one rate preserves it; any worse rate destroys value in proportion. Programmes with a poor ratio look generous on a statement because the balance number is large, and turn out not to be at redemption. The ratio therefore belongs in the maths before the transfer, not after it.
Not to be confused with#
The transfer ratio is not the same as a card’s earning rate: the earning rate says how many points a purchase generates, the transfer ratio how many of them survive the move.
In German#
The German term is Transferverhältnis. German version of this term
Related terms#
- Transfer partner: A transfer partner is an airline or hotel programme that a bank or card programme can convert its points into.
- Transfer bonus: A transfer bonus is a temporary uplift on the transfer ratio: the same number of points briefly arrives as more miles in the destination programme.
- Cents per point: Cents per point is the measure of a redemption’s value: the cash price avoided, minus any co-payment, divided by the number of points spent.
Articles that use this term#
TopicEvery article and term onPoints and miles.