Americans leave millions of free money at the table

Millions of dollars of credit card payments are not charged each year. Money that can make travel, daily expenses, and even pocket-based revenue. If you haven’t redeemed these rewards, you’ve left your money on the table.

As someone who uses credit card rewards, I was surprised to find that a recent Bankrate survey revealed that 25% of Americans did not redeem their rewards last year.

It represents a huge amount of money. For example, in 2022, consumers using generic credit cards from major issuers earned more than $40 billion in compensation, according to a 2024 Consumer Financial Protection Agency report. “Issuers are confiscated, expired, cancelled or otherwise taken away at the reward value they earned every year in hundreds of millions of dollars,” the agency said.

With so much content from social media influencers to financial experts highlighting these benefits, the real issues are more than just perceptions. That’s execution.

Knowing about reward programs is one thing, but implementation is actually important. Without a strategy, these perks may not be billed, just like any other aspect of financial planning.

This is an important point that consumers should know.

Many consumers sign up for credit cards without thorough review of the reward structure and profits. Financial institutions often print out perks to fill in, making them easier to overlook. Many people view rewards as “bonus” rather than tangible financial assets that can offset costs.

Beyond standard rewards, many credit cards often offer embedded perks such as travel insurance, purchase protection, and exclusive event access. These benefits provide cardholders with added security and savings beyond traditional points and cashback.

Understanding which cards offer can help you maximize the value of your credit card and avoid leaving money on the table.

I would like to share my personal experience and show that credit card perks that are often overlooked can really make a difference.

A few years ago, my son received an iPad from his grandparents as a Hanukkah gift. A few days later, in his brother’s hockey game, he beat it for a moment and celebrated a big victory.

He was heartbroken and my in-laws became annoyed, assuming it would be gone forever. I encouraged them to check out the benefits offered by the credit card they used to buy it.

After calling the financial institution, they discovered a credit card that purchased the item with purchase protection.

Thanks to this, your iPad costs will be refunded after you submit your documents. Within a few weeks they had reclaimed their money and allowed them to exchange items. It reminded me that so many people are unaware of the various perks.

Knowing what a credit card offers can turn unexpected losses into valuable lessons and reduce the financial impact.

Credit card benefits are not just points and cashback. It offers hidden protection that saves consumers. If you are not using the perks, you will effectively return the money to the financial institution. Especially if you have credits at an annual fee. If a newly purchased item has been lost or stolen, or if an expensive item breaks after the warranty expires, don’t assume that you have money. If you paid with a credit card, contact your financial institution to see the possibility of coverage via embedded purchase protection and extended warranty. If you experience problems during your vacation – Book your trip with a credit card, including delays in flight, lost luggage, cancelling your reservation, and call the issuer. You may be able to get a refund from embedded travel insurance that covers losses and unexpected costs. If you’re worried about accumulating your balance, and if you can’t pay in full at the end of the month, consider making a weekly payment or paying back a large purchase immediately. This approach allows you to take advantage of the benefits, protections and rewards of credit cards while maintaining the many discovered disciplines when using your debit card.

– by Lawrence D. Sprung, certified financial planner and founder/Wealth Advisor at Mitlin Financial Inc.