Hi, I have seen posts here for swapping points by family transferring for a long time, can I know if it's legal to do that?
For example, is there any terms from Qantas or Velocity that doesn't allow such swapping? Or any consequence that if they found your family transferred points are not from family?
Thanks
Thanks, can you please share the link or example? I tried to search terms and condition in family transferring of both airlines, but seems not mentioned the consequences or maybe I miss some articles?
Yes that was Qantas. Seems like OP got suspended by Velocity?
I've heard about multiple people getting suspended by Velocity recently.
Example
@BrunoBear: Thanks for sharing, I checked terms and condition again, they did not mention consequences if not eligible family transfer conducted… So on what basis they can cancel booking even closing account?
@hfwangau: They don't have to mention 'consequences'.
They'll tell you who you can 'share' points with (aka family members) and then they reserve the right to shut down your account. So if you go outside the rules that you've agreed to (when you signed up) … they'll show you the consequences! lol
Legal has nothing to do with it, but you will breach the conditions if you transfer to non eligible people and risk cancelling your account.
At worst they'll cancel your points and account, but nothing like being fined or going to jail Etc.
It's pretty low risk, particular if you're the seller as you have cash in hand so if your account is banned doesn't mean much.
Thanks.
If I used the transferred points to book the rewards flight already, will they cancel the booking?
My account is already suspended pending investigation shortly after booking.
Yes in my experience with Qantas they will also cancel the tickets associated with the booking. If they didn't, count yourself lucky. You don't want to be turning up to the airport without valid tickets so do online check in beforehand to make sure everything is all good.
Yes, they will cancel the booking.
Only do what you are willing to accept the reasonably foreseeable worst case scenario consequences for. Worst case scenario, all involved lose their points.
No, worst case is a lifetime ban
+1 That too!
simple. No
banned accounts, cancelled points, cancelled flights made with the transferred points
heaps of cool shit, just dont risk it……….unless of course your the one getting cold hard cash for it and you dont care if your account is banned
There have been 0 prosecutions relating to points swapping.
Points are not contraband, therefore selling them is perfectly legal.
AFAIK, the only place in the world where it's illegal to sell airline miles is Utah, USA. Not that you're likely to be prosecuted even if you did it there though.
Update:
I have called Velocity to own it up, to apologise and to seek forgiveness.
The agent still said let me wait for up to 30 days and will note to the security team.
In case you're wondering, Point 2.3 in the Velocity T&C's:
You can’t sell, transfer or otherwise deal with your or someone else’s Points, Status Credits or other member benefits in a way not permitted by these Terms. Your member benefits aren’t transferable except in the limited circumstances set out in these Terms – i.e. under clause 5 and Points transfers made by executors and administrators (see above). Membership isn’t transferable.
And Point 2.5:
Circumstances in which we may consider it reasonable to immediately suspend your membership without notice include if we:
identify or suspect potentially fraudulent or dishonest activity in connection with your Velocity account; or
suspect you’ve dealt with or attempted to deal with member benefits other than in accordance with these Terms (e.g. you’ve attempted to sell, transfer or otherwise deal with your or someone else’s Points, Status Credits or other member benefits in a way not permitted by these Terms).
You can't transfer Velocity points to non-family members but you are allowed to book reward seats for them.
If you transfer to other than an eligible family member there may indeed be consequences; stories widely shared here and in other forums by those who've been sanctioned by the airlines.