Want to sell your airline miles? Here's why it's a bad idea

Most of the time, TPG readers are concerned about how to earn more miles. Sometimes a reader asks if you can sell airline miles.

Doug F wrote in asking.

"I have been told I can sell my 170,000 United miles. Where can I find if this is true and a reputable company if it is?"

If you search online, you'll find airlines that will pay you cash for your travel rewards. I don't think it's a good idea to sell your miles for a lot of reasons.

There are other ways to get value from airline miles you do not want.

Why it's a bad idea to sell airline miles

Doug F asked if he could sell United miles. One of the main reasons it is a bad idea to sell airline miles is the United Mileage Plus program rules.

The program rules allow Mileage Plus members to book awards in the name and for the use of any other person. There is a section entitled "prohibition of sale or barter" in the rules.

"The sale, barter or other transfer or attempted sale, barter or other transfer of any mileage, certificates, PlusPoints, awards, benefits or status, other than as authorized and/or sponsored by United, is expressly prohibited. Any mileage, certificates, PlusPoints, awards, benefits or status sold, bartered or otherwise transferred is in violation of the Rules and any accounts or Members involved in such sales, barters or other transfers may be subject to United’s Remedies. The acquisition, use, transfer or attempted acquisition, use or transfer of mileage, certificates, PlusPoints, awards, benefits or status that have been acquired by purchase, barter or other transfer in violation of the Rules may result in United’s exercise of United’s Remedies."

You can redeem your miles for a flight. Except as specifically authorized or sponsored by United, selling United miles or awards is not allowed.

If you're wondering how bad it will be if United catches you buying or selling miles or awards, take a look at the program rules.

• Termination of your United MileagePlus account, including any United MileagePlus Premier status or United Million Miler status.
• Removal or cancellation of any or all accrued United miles, Premier qualifying credits, lifetime miles and any pending or outstanding award redemptions, certificates or benefits.
• The confiscation of award tickets or denial of boarding at the airport.
• Loss of other United MileagePlus program benefits.

If you enjoy United Mileage Plus elite status, get excellent value from United miles or accumulate a massive mileage balance with United, these remedies might sound terrible. If you only have a small amount of miles and don't plan on using the program in the future, these remedies might be worth the risk.

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The remedies aren't the end of the negatives that could come from selling or buying awards. The program rules of United go on to note.

In addition to the foregoing United’s Remedies, United may, upon written request, require the Member to repay the value, as determined by United, of the awards redeemed, certificates or benefits acquired as a result of Prohibited Conduct.

Rules for loyalty programs are not the same. Major loyalty programs don't allow buying and selling rewards. Many loyalty programs have procedures to flag questionable redemptions.

It is not a risk that I am willing to take. Travelers who only sell one or two award tickets may face severe consequences from major loyalty programs.

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How many reporters would spend 1 million miles?

Other options besides selling travel rewards

It's a risky idea to sell your travel rewards. If you want to sell airline miles for cash, look at the following options.

You can either give the gift of travel to a friend or family member, or you can squeeze a bit of value from your travel rewards in a program approved way. You can use your rewards to book a trip with family or friends if none of the options are appealing.

What to do with points and miles?

Bottom line

It's against the terms and conditions of most loyalty programs to sell your points or miles. I wouldn't barter or sell my rewards, even though I have booked awards for friends and family as a gift. With many programs looking for suspicious redemptions, it is too risky.

If you sell your points or miles, it's not worth the risk of losing your account or paying thousands of dollars to the loyalty program.