Why the Hate Towards Credit Card Gamers is Unjustified

Credit card “gamers” – those savvy users who maximize card rewards (like airline miles, points, and cash rebates) through strategic spending – often get a bad rap.

Banks and even fellow consumers sometimes view these enthusiasts as freeloaders exploiting loopholes at the expense of banks’ profits.

In Malaysia, this narrative has gained traction as more people embrace travel hacking and rewards optimization. But is this “hate” really justified?

Let’s explore why many miles chasers and reward optimizers actually bring value to banks, and where to draw the line between healthy gaming and unethical abuse of the system.

Who Are Credit Card “Gamers” and Why Banks Worry

Credit card gamers (also called miles chasers or churners in some circles) are consumers who intentionally use credit cards to squeeze out maximum rewards – whether airline miles, hotel points, or cashback.

They might open new cards for big sign-up bonuses, funnel all spending onto the card that gives the best points, or leverage category bonuses (like 10x points on travel or dining). Crucially, they pay their bills on time to avoid interest, effectively getting rewards for free. God forbid Refined Points readers' from being financially prudent!

This behavior has led to a few common banker nightmares:

• No Interest Revenue:

  • These users, known as “transactors,” pay in full and incur no finance charges. Banks traditionally profit heavily from those who carry balances (“revolvers”), so transactors might seem unprofitable at first glance​. In fact, U.S. data shows revolvers are ~60% of accounts but generate ~85-90% of issuers’ revenues​. Naturally, banks worry if everyone behaved like gamers, revenue from interest would plummet.

    
    

• Sign-Up Bonus Churn:

  • Gamers may hop between cards to grab welcome bonuses (a practice known as churning). For example, in Malaysia a campaign offered free Apple AirPods for getting a Citi card and making 8 transactions​. Some users gleefully sign up, earn the gift, then move on.

  • Banks spend money on these rewards and marketing, so a churn-and-burn customer can be a short-term cost. (I know sign-up perks locally are modest compared to the US, where bonuses worth hundreds of dollars are common​. Banks like Maybank even restrict bonuses to new customers only – if you’re an existing cardholder, you won’t qualify again​, a rule aimed at curbing constant churn.)

  
  

• Rewards Costs:

  • Every point or mile earned has a cost to the bank. For instance, banks purchase airline miles to award their cardholders – making banks the #1 buyer of frequent flyer points today​.

  • A big spender racking up miles could cost the bank in rewards outlay. If that customer never pays interest, one might think the bank loses money on them.

Similarly, banks in Malaysia and Singapore generally disallow earning rewards on certain transactions like e-wallet top-ups (although there are exceptions like the Alliance Bank Visa Infinite) as they see no upside in funding a competitor’s wallet​.

Obvioiusly, it doesn’t work in the banks’ favor to give bonus points for GrabPay top-ups if customers then spend via the GrabPay card (meaning Grab, not the bank, gets the transaction data and relationship)​.

Why Banks Actually Benefit from Rewards Enthusiasts

I'm probably biased, given that I started an entire blog on maximizing airline miles, but the idea that all credit card gamers are detrimental to banks is a misconception.

Industry experts and financial institutions point out multiple positive effects these savvy customers bring:

• Interchange Revenue:

  • What do so-called gamers do to earn rewards faster? Spend, and spend consistently (within their means).

  • All that spend generates interchange fees from merchants. Even if a cardholder never pays a dime of interest, the bank earns a small fee on every transaction. In fact, an experienced observer notes that issuers can make a healthy profit even on cardholders who pay in full, thanks to merchant swipe fees and annual fees​.

    
    

• Long-Term Loyalty and Lifetime Value:

  • Many gamers develop deep loyalty to the brands that serve them well.

  • If a bank’s credit card offers the best miles earn rate or perks, that card becomes the user’s go-to for years. This is absolutely evident with everything that's going on with Maybank right now. With the Maybank 2 Cards Premier no longer a competitor in the airline miles game, it's crazy to see how popular the card is even today.

  • This sticky relationship can also translate into cross-selling of other products (wealth management, mortgages, etc.) or at least a reliably active account. It's common knowledge that once a customer is hooked on the rewards ecosystem, they are less likely to switch.

    
    

• Free Marketing and Brand Ambassadors:

  • Credit card gamers are often vocal about their experiences – blogging (ahem), posting on forums, or talking to friends about the best cards. This word-of-mouth buzz is invaluable marketing for banks.

  • A coveted reputation as “the best air miles card” can attract droves of new applications without the bank spending a cent on advertising – the gamers do it for them.

  • Whenever a new credit card is launched in Singapore, my friends generally visit The MileLion before even visiting the bank's product page itself.

  • Essentially, whether they like it or not, these customers become unofficial ambassadors, showcasing the value of the card’s benefits.

    
    

• Higher Profitability When Managed Well:

  • The key for banks is to manage rewards programs smartly rather than trying to "punish" gamers altogether. The reality is that credit cards overall remain hugely profitable for banks, even factoring in reward costs.

  • With most travel-focused cards in Malaysia, banks actually buy miles from airlines and resell them to cardholders; this partnership is so lucrative that it fuels airline profits as well.

  • Obvioiusly, banks factor these costs into annual fees and merchant fees. Many premium cards in Malaysia charge annual fees (sometimes with options to pay the fee in exchange for bonus miles, like the UOB PRVI Miles Elite).

  • And not all customers redeem every point – breakage (unused or expired points) can be significant. I can tell you that several of your uncles and aunties may very well have millions of points sitting in their bank!

Drawing the Line: Healthy Gaming vs. Unethical Abuse

Despite all this, I can tell you that I do sometimes emphasize with banks, especially when cases of unethical abuse arises. I actually think it’s important for the bank to distinguish legitimate reward optimization from abusive or unethical practices.

Not all “gaming” is equal, and banks are right to crack down when things cross the line. However, punishing an ENTIRE cohort of cardholders, such as what CIMB has done with its Travel World Elite spend exceptions, is borderline excessive.

When it comes to actual unethical gamers, such as abusing corporate or third-party funds, is clearly unacceptable. These behaviors do harm banks (and merchants), and they fuel the negative stereotype of reward gamers as shameless opportunists.

The good news is that banks are getting smarter at distinguishing these segments. No bank should subsidize behavior that is effectively gaming the system without supporting the ecosystem.

But it’s critical not to lump the everyday rewards enthusiast in with the abusers. The vast majority of credit card gamers in Malaysia are simply maximizing the value of their normal spending, not committing any fraud. As long as they play by the rules, these customers are assets, not liabilities.

That said, any banker who labels customers with a thorough understanding of credit card features and market dynamics as “gamers” is simply misguided.

Consider explaining to a CIMB Travel World Elite cardholder that its 10X Bonus Points yield less value than the UOB PRVI Miles Elite card’s 10X UNIRM points—solely because of differences in airline‑mile conversion rates—and then being dismissed as a “gamer.”

Have we reached a point where accurately assessing the value of the miles you earn on your own credit card is considered improper?

Final Thoughts

The narrative that credit card gamers are the enemy of banks is outdated and oversimplified. In reality, when managed correctly, reward-savvy customers create a win-win scenario.

They get to enjoy free trips, cash rebates, upgrades, and VIP perks for their spending, while banks earn steady fee revenue and foster loyal client relationships.

A thriving rewards ecosystem can even be viewed as a form of collaborative marketing: banks, airlines, and merchants partner to delight the customer, each reaping a share of the benefit (be it in sales, data, or loyalty).

Rather than “hate” these gamers, banks in Malaysia should learn to engage and profit from them. They’re refining loyalty programs to ensure they attract sustainable gamers – those who will stick around and remain active – and deter only the truly detrimental behaviors.

Malaysian banks, facing a young demographic and rising affluence, can actually gain a competitive edge by embracing credit card gamers. Treat them well – perhaps with more flexible redemption options, personalized offers, or education on how to best use their card – and you’ll likely gain an advocate for your brand (and plenty of incremental spend). Treat them poorly – say, by devaluing rewards with hidden clauses (*cough* Maybank) or assuming every savvy customer is a scammer – and you risk losing not just that customer, but also reputation in the market.