The Media’s “Points Guy” Problem
August 16, 2024
By now, many people have likely heard of The Points Guy. What began in 2010 as a blog written by Brian Kelly aimed at educating consumers about how to maximize their credit card reward points in exchange for free travel and other perks has grown into a multimillion-dollar empire. Today, over 8 million Americans regularly visit the site for advice, 6 million follow him on social media, and media outlets frequently host Kelly to talk about his latest credit card reward hacks.
His rise to fame and fortune has come at a time when credit card debt in the United States has surpassed $1 trillion for the first time in history; when inflation rates have remained consistently high since the pandemic; and when Americans continue to struggle to afford basic needs.
But here’s the problem: While the media regularly invite Kelly to encourage people to sign up for new credit cards, they fail to note that Kelly himself is financially tied to the credit card industry. In fact, Kelly generates a percentage of a credit card company’s revenues every time someone signs up for a credit card through The Points Guy website. To Kelly’s credit, he acknowledges his relationship to the credit card companies on his website; however, the media routinely ignore this form of self-dealing.
Take Kelly’s recent appearance on ABC’s “Good Morning America” to talk about summer travel. During the segment, he told viewers that “getting that airline cobranded credit card could save you hundreds, even thousands of dollars.” There is, however, no mention about how Kelly partners with Citi to earn commission on their AAdvantage Card and American Express for their Delta Sky Miles card.
But Kelly’s revenue doesn’t stop at affiliate marketing and referral bonuses; he also sponsors credit cards throughout his site. The Points Guy website clearly states that “we may receive compensation when you click on these links to apply for a new credit card” and that these partnerships “may impact the location and visibility of these products” including the order in which roundups and – mostly likely — rankings appear on their website. But the media seem to look the other way.
Kelly has gone as far as bragging that Chase CEO Jamie Dimon once mentioned The Points Guy on an earnings call. And he was a featured speaker at the American Bankers Association’s Washington Summit earlier this year.
It should come as no surprise, then, that America’s de facto leading credit card salesman is advocating against the Credit Card Competition Act (CCA), a bipartisan bill in Congress designed to promote competition within the credit card industry and curb the ability of Visa and Mastercard to endlessly raise interchange or “swipe fees” on retailers and consumers. Kelly has made his opposition to the bill clear, claiming that the CCCA would “destroy” credit card points and add “billions of dollars to the retailers bottom line.”
Of course, that is a laughable claim. Credit card companies can more than afford to continue offering the same reward points without raising costs for small retailers and everyday consumers. Visa and Mastercard have both reported major profit surges this year, and on a per-employee basis are among the country’s most profitable companies.
Passing the Credit Card Competition Act wouldn’t “destroy” credit card reward points. It would simply put a stop to the long-standing trend of increasing hidden fees to keep juicing these profit margins.
Clearly, Kelly’s financial ties to credit card companies and their luxury rewards cast a shadow over his credibility when it comes to consumer advice or policy that affects the credit card industry — an issue that has been swept under the rug long enough. It is the media’s responsibility to disclose the truth behind Kelly’s financial motivations and the sources of his income through honest reporting.