The Points Drain: Which Small and Medium Size Businesses Waste the Most (and Why)
Small and Medium Businesses (SMBs) are bleeding 5-7 figures in lost award travel points and miles every year without knowing it. Wrong credit cards, bad redemptions, idle rewards. Meanwhile, competitors fly business class for free. Stop the points drain before your profit leaks at 35,000 feet.
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Many SMBs earn plenty of credit card points but waste huge value by redeeming poorly, using the wrong cards, or not centralizing their strategy. Industries like professional services, construction, marketing agencies, e-commerce, and hospitality are especially prone because their spending patterns could generate massive rewards - yet most settle for flat 1%–2% returns or low-value gift cards instead of high-value travel redemptions.
The biggest mistakes are letting employees use mixed, unoptimized cards; hoarding points until they lose value; ignoring high-value airline and hotel transfer partners; misaligning rewards with actual travel needs; and paying vendors in ways that don’t earn points. Combined, these habits can mean tens - or even hundreds - of thousands in lost value every year, even for companies spending as little as $250K annually.
Optimized strategies regularly turn a $1M spend from $20K in travel value into $100K–$200K in premium flights and hotels. That’s real budget power - enough to fund team retreats, cover client travel, or reinvest in growth without touching cash reserves. It’s not theoretical; the difference is just in card selection, category maximization, and redemption method.
For SMBs, points aren’t just a perk - they’re part of the return on every dollar spent. Treating them like a bonus leaves money on the table; treating them like an asset creates a competitive edge. The choice is simple: keep wasting points or turn them into a profit center.
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Every small and medium business owner loves the idea of “free travel.” Swipe the card. Collect the points. Book the dream trip.
The reality? For most Small and Medium Size Businesses (SMBs), that dream trip is a bad math problem in disguise.
The ugly truth: the majority of SMBs are leaving five, six, sometimes even seven figures of value on the table every single year - and they don’t even know it.
It’s not because they aren’t earning points. It’s because they’re earning the wrong way, redeeming the wrong way, or letting rewards rot unused. And in some industries, this points leakage isn’t just common - it’s practically built into the business model.
We see this every day: companies that could be flying their team lie-flat to Europe on points… but are instead cashing in for $300 in Amazon gift cards.
This article is your wake-up call. We’re going to break down which SMBs waste the most, why they do it, how much it’s really costing them, and how to stop the bleed.
The Usual Suspects - Industries Bleeding Points
Some SMBs waste points more than others - not because they don’t care, but because their spending patterns make it easy to earn big rewards… and equally easy to misuse them.
1. Professional Services (Law, Consulting, Accounting)
If you run a professional services firm, you probably have the holy trinity of points-rich expenses:
- High-ticket client travel (last-minute flights, upscale hotels)
- Premium software subscriptions (CRMs, case management, analytics tools)
- Event hosting (client dinners, conference sponsorships)
On paper, this is points heaven. In practice, most firms earn like amateurs.
The waste pattern: They lock all spend into one bank’s travel portal, redeem at a flat 1¢ per point, and pat themselves on the back for “free” airfare - when they could be getting 3–5× that value by transferring to airline partners.
Example:
A mid-sized consulting firm spends $1M/year across cards. With a flat 1% earn rate and poor redemption, they see maybe $20K of travel.
Optimized? That same spend could yield $100K+ of premium cabin flights every single year.
2. Construction & Trades
Plumbers, electricians, general contractors - these businesses move money like few others.
Major point-earning categories:
- Bulk supplier orders (Home Depot, Ferguson, Grainger)
- Fuel and fleet expenses
- Heavy equipment rentals and leases
The waste pattern: Many still rely on vendor financing or debit-based ACH payments - meaning zero points on six- and seven-figure annual spend. Even when they use credit cards, it’s often the wrong one (no category bonuses, low earn rates).
Example:
A plumbing company with $500K/year in supply purchases earning at 1% gets about $5K in travel value.
With a strategic setup - say, a card offering 5× in the right categories and smart redemptions - that same $500K could be worth $50K+ in premium travel.
3. Creative & Marketing Agencies
Ad agencies, content studios, and media firms have one thing in common: massive advertising spend.
Major point-earning categories:
- Digital media buys (Meta, Google, TikTok)
- Production costs (equipment rentals, freelance contractors)
- Client travel & events
The waste pattern: They dump all spend on a single issuer card “for simplicity” - often Amex MR - without matching the airline partners to their actual travel needs. That means when they go to redeem, they either settle for poor partner options or burn through points in low-value portal redemptions.
Example:
An agency spending $250K/month on ads could rack up 3–5M points/year.
Optimized, that’s enough for 15+ roundtrip business-class tickets to Europe. Instead, most agencies redeem for domestic economy at poor rates or even statement credits.
4. E-Commerce & Retail SMBs
E-commerce owners live in a points goldmine - if they know how to dig.
Major point-earning categories:
- Ad spend (Meta, Google, influencer campaigns)
- Inventory purchasing
- Fulfillment & logistics (FedEx, UPS, DHL)
The waste pattern: Many run ads on a debit card to “avoid interest” or pay suppliers through ACH. Others use a flat-cashback card instead of a points strategy, leaving high-value airline transfers untapped.
Example:
A brand spending $200K/month on inventory and ads could earn enough points for company-wide annual retreats - but instead takes a few $500 statement credits here and there.
5. Hospitality & Event Companies
Hotels, catering firms, event planners - these businesses should have points strategies written into their DNA.
Major point-earning categories:
- Venue rentals and deposits
- Food & beverage orders
- Team and client travel
The waste pattern: They often book travel through corporate agencies that either don’t pass along the points or redeem them at rock-bottom value. On the earn side, they miss out on 4–5× multipliers because the agency funnels spend through non-bonus categories.
Example:
An events firm that spends $750K/year on venues and travel could easily cover its own flights and hotels in premium cabins - but without strategy, they barely scratch the surface.
Why They Waste It - The Five Core Mistakes
It’s not just the industries. It’s the habits.
1. No Centralized Card Policy
Every employee has “their” card. Some earn cash back, some earn points, some earn nothing at all. Without centralization, category bonuses go untapped and points scatter across programs.
2. Hoarding Points Without Redeeming Wisely
The classic “we’re saving up for something big” mindset leads to points devaluation. Programs change rules constantly. A million points today could be worth 20–30% less next year.
3. Ignoring Transfer Partners
This is the single biggest waste. A point redeemed through a bank portal at 1¢ is an entirely different asset than a point redeemed for a $6,000 business-class ticket via an airline partner.
4. Misalignment of Spend & Goals
If your team never flies Delta, why is all your airfare spend going on a Delta SkyMiles card? Airline-specific cards can be powerful - but only if aligned with real travel patterns.
5. Vendor Relationships That Kill Rewards
Many SMBs pay vendors via ACH or check “because that’s how we’ve always done it.” With the right setup, even large supplier payments can go on credit cards at minimal cost - turning fixed expenses into free travel.
The Numbers - What Waste Really Looks Like
Here’s the blunt math:
|
Annual Spend |
Typical SMB Return (1–2%) |
Optimized Return (5–20.59%) |
Lost Value per Year |
|
$250K |
$2.5K–$5K |
$12.5K–$51.5K |
$10K–$46.5K |
|
$1M |
$10K–$20K |
$50K–$205.9K |
$40K–$185.9K |
|
$5M |
$50K–$100K |
$250K–$1.029M |
$200K–$929K |
These are not “theoretical” numbers. We see them every week.
An SMB spending $1M annually is effectively handing their competitors a $100K budget advantage if they’re earning and redeeming poorly.
The Mindset Shift
Points are not a side perk. They are part of the ROI on every dollar you spend.
If you’re treating points like a “bonus,” you’re treating profit like a bonus.
If you’re swiping without strategy, you’re writing checks to airlines and hotels instead of having them write checks to you - in the form of premium travel you didn’t have to buy.
How UpNonStop Fixes This
We stop the points drain in two phases:
1. Centralized Earn-Side Strategy
We analyze all spend categories, match them to the best-earning cards, and unify the company under a single, optimized points plan. This ensures no dollar is wasted and all high-multiplier categories are maximized.
2. Redemption Optimization
We convert low-value redemptions into high-value transfers, booking premium travel for economy prices in points. We also ensure points don’t sit idle and lose value.
Real Client Example (Anonymous):
- Pre-UpNonStop: $2M annual spend, mostly on a single 1% cashback card. Effective travel value: $20K/year.
- Post-UpNonStop: Optimized card mix + strategic transfers = $205K/year in premium travel.
That’s an extra $185K in travel budget - without spending an extra dime.
Final Thoughts
If you own a business, your points program is either a profit center or a profit leak. There is no middle ground.
The SMBs that fix their points strategy unlock real budget advantages, fly their teams in style, and keep cash in the bank.
The ones that don’t? They keep paying full fare while their competitors drink champagne at 35,000 feet - on points.
