Brex Devalues Rewards Level Redemption Charges

With the failure of Silicon Valley Financial institution on Friday, billions of dollars of deposits have reportedly been flooding into Brex. And Brex has shortly acted… to devalue its Brex Rewards factors. Efficient instantly, Brex devalued money and crypto redemptions by 40% and slashed Brex Rewards level switch charges to airline companions by over 40%.

Listed below are the small print of yet another no-notice devaluation this week.

Who’s Brex?

In early 2021, Brex made a reputation for itself within the factors and miles world when it provided small companies an incredible 110,000-point sign-on bonus for opening a brand new small enterprise checking account and assembly a few achievable onboarding duties and card spending necessities.

Even higher, Brex provides a no-annual-fee rewards card linked to the checking account that gives profitable bonus classes — together with 8x factors on rideshare, 5x on journey, and 4x on eating places.

If that every one appears too good to be true, nicely, possibly it was. In August 2022, Brex determined to shut all small enterprise accounts. As an alternative, Brex is now specializing in bigger companies and funded startups. That pivot appears to have been well timed, given Silicon Valley Bank’s failure immediately, March 10, 2023.

Brex Rewards Level Redemption Charges

For years, Brex Rewards factors may very well be redeemed for money again, journey, present playing cards, or cryptocurrency at 1¢ every. Or, Brex Rewards factors may very well be transferred to one in every of a number of airline companions at a 1:1 switch ratio (1 Brex Rewards level = 1 airline mile). Mileage redemptions require a minimal switch of 500 factors.

Brex Rewards level redemption choices.

After losing JetBlue as a transfer partner in October 2021, Brex Rewards members can now switch factors to seven airline mileage applications throughout all three main airline alliances:

• Aeromexico Membership Premier
• Air France-KLM Flying Blue
• Avianca LifeMiles
• Cathay Pacific Asia Miles
• Emirates Skywards
• Qantas Frequent Flyer
• Singapore KrisFlyer

Earlier than immediately, Brex Rewards factors would switch to all seven companions at a 1:1 switch ratio. However that modified immediately when Brex all of the sudden devalued level transfers. As an alternative of a 1:1 switch ratio, you may now must switch 1,670 Brex Rewards factors to obtain 1,000 airline miles.

Brex accountholders now must switch 67% extra factors to get the identical variety of airline miles. That equates to greater than a 40% devaluation.

Brex Devalues Money and Crypto Redemptions

Along with slashing airline switch charges, Brex additionally devalued the redemption charges for each money and cryptocurrency redemptions by 40%. As an alternative of getting 1 cent per level in worth, you may solely get 0.6 cents per level from cashback redemptions efficient immediately.

Likewise, Brex crypto redemptions now present 0.6 cents in worth per Brex Rewards level:

Which Brex Redemptions Have not Been Devalued?

For now, Brex hasn’t devalued present card or journey portal redemptions. Accountholders can nonetheless redeem Brex Rewards factors for 1 cent per level by way of the journey portal. For instance, a Delta Principal Cabin ticket from New York (JFK) to Los Angeles (LAX) may be bought for both $288 or 28,891 factors:

Likewise, Brex accountholders can nonetheless redeem factors for present playing cards at 1 cent per level — together with retailers like Delta, Starbucks, and Uber:

Curiously, a few nearly-cash-equivalent present card redemptions are nonetheless out there at 1 cent per level, resembling Mastercard pay as you go playing cards and Amazon present playing cards.

See Also

The mathematical motive why companies get caught at $50k MRR – Jakob Greenfeld – Experiments in Permissionless Entrepreneurship

How Brex Accountholders Ought to Modify Their Redemption Technique

Earlier than this transformation, transferring Brex Rewards factors to airline switch companions was a no brainer. All different redemption choices solely offered one cent in worth. And with little effort, Brex accountholders may get greater than 1 cent per level in worth from companion airline redemptions.

With simultaneous devaluations to each money and airline switch redemptions, Brex accountholders nonetheless have the selection between 1 cent in cashback (or crypto) and 1 airline mile. Nevertheless, journey portal and present card redemptions have change into much more priceless by comparability.

Now, 1,000 Brex Rewards factors will internet you:

• $10 in worth for journey portal and present card redemptions
• $6 in worth for cashback or crypto redemptions
• ~599 airline miles (1,670 Brex factors = 1,000 airline miles)

Should you worth journey portal and present card redemptions at face worth, you may now need to get 1.67 cents per airline mile in worth earlier than transferring Brex Rewards factors to journey companions.

That is definitely achievable. In current redemptions, AwardWallet customers have gotten the next common redemption charges from Brex airline switch companions.

Notice that we have not computed common redemption charges for 2 Brex airline companions: Aeromexico Membership Premier and Qantas Frequent Flyer.

Backside Line

As funds flood into the financial institution, Brex made an instantaneous and unannounced devaluation to its factors. Brex accountholders now should switch 67% extra Brex Rewards factors to obtain the identical variety of airline miles. And money and crypto redemptions have been slashed to 0.6 cents per level. These modifications equate to a 40% devaluation within the worth of those Brex Rewards level redemption choices.

For now, present card and journey portal redemptions are unaffected; each nonetheless present 1 cent per Brex Rewards level in worth. Nevertheless, contemplating immediately’s no-notice modifications, we would not advocate sitting on a big stability of Brex Rewards factors.

AwardWallet reached out to Brex for remark however didn’t obtain a response as of publishing. We are going to replace this put up with extra info if we obtain a press release.