Authorized User Credit Card Redeem Rewards: Who Gets the Points?

Adding an authorized user to your credit account is a great way to help a family member build their credit history. However, one of the most common questions among cardholders is: how does the authorized user credit card redeem rewards process work? Understanding the rules of point distribution can prevent misunderstandings between the primary account holder and the additional user.

Who Owns the Rewards Points?

In the vast majority of credit card agreements, the primary account holder maintains full ownership of all rewards earned. Even if the authorized user is the one making all the purchases, the points, cashback, or miles are credited to the main account.

This means that the authorized user typically cannot independently access the rewards portal to redeem points for gift cards, travel, or statement credits. The ability to authorized user credit card redeem rewards rests solely with the person who opened the account. The primary holder decides if and when the accumulated benefits are used.

How to Share Rewards with Authorized Users

While the bank views the primary cardholder as the owner of the rewards, there are several ways to share these benefits with your authorized users:

1. Direct Redemption: The primary holder can redeem points for a statement credit, effectively lowering the balance that the authorized user may have contributed to.

2. Gift Cards and Merchandise: You can use the points to purchase gift cards or products and give them to the authorized user as a reward.

3. Travel Bookings: If you have a travel rewards card, you can book flights or hotels for the authorized user using the accumulated miles.

It is important to note that some premium cards allow for "point transfers" to partner programs, but this action always requires the primary account holder's authorization.

Potential Risks and Management

Allowing someone else to spend on your account to accumulate points carries a risk. Since the primary holder is legally responsible for all payments, any reckless spending by the authorized user can outweigh the value of the rewards earned. To manage this, many issuers allow you to set spending limits for additional cards, ensuring that the pursuit of rewards doesn't lead to uncontrollable debt.