DUSTY WALLET

Collecting corporate loyalty points may seem like a hassle and an invasion of privacy, but the resulting discounts and freebies make it too hard to say no

Loyalty cards may seem like a hassle, but the resulting discounts make them too hard to give up.

Judging by membership levels, most Canadians have a wallet stuffed with loyalty cards. Millions of Canadians have signed up for loyalty cards such as the Shoppers Drug Mart Optimum program or Cineplex’s Scene card. Don’t forget Air Miles. The list goes on. Key chains? They’re jammed with electronic points devices that leave little room for keys.

But how do you say no? A mere swipe earns you points towards something of value in the future or, better yet, an immediate discount.

The Scene card is a case in point. Pay for 10 movies and you get a free one. Every time you buy something at the concession stand — we all know how grossly overpriced popcorn is at the theatre — you get 10% off. David Langdon, a spokesman for Cineplex Inc., says the program is up to six million members, or about one in six Canadians. “We don’t think there is a downside,” says Langdon, noting the absence of an annual fee on a basic card.

The main opposition to these programs, beyond just having one more card that won’t fit in your wallet, seems to be the invasion of privacy. Somebody, somewhere, is keeping track of your movie choices and how much junk food you are eating. Downloading a mobile app usually requires giving up access to your smartphone and who isn’t paranoid about that these days?

Patrick Sojka, founder of Rewards Canada, which tracks loyalty cards, says there is no harm financially in signing up for a program unless it has a credit card that might come with an annual fee. At that point, you have to start doing the math. “If you have, say, a Shoppers card and you’re only in the store once a year, it may not be worth it because it’s going to take you so long before you can redeem anything,” he says. “And then you are going to be inundated with emails for things you don’t want.” But Sojka says you can’t dismiss people’s privacy concerns, which are only heightened by loyalty programs that send you targeted email based on your past purchasing practices. “It’s not just about the data being stolen,” he says. “The worry is that data is somehow going to be manipulated in a way to get people to buy something they don’t want.”

How much do you leave on the table by not signing up for all the free points out there? Sojka says anywhere from 0.5% to 2% of your purchase value could end up as a reward. On $10,000 of spending, that’s as little as $50. But what’s the price you’re paying? Telling someone how much junk food you eat? What time you purchase milk? Privacy is one thing. An extra $50 in your pocket, that’s another.