Even I was surprised at the level of enthusiasm readers of this newsletter showed about PC Optimum when I asked a couple of years ago about favourite customer loyalty programs.
But recent developments at PC Optimum have alarmed one of the country’s foremost experts on loyalty programs. Last week, Patrick Sojka of RewardsCanada.ca reached out to the media about a problem PC Optimum is having with member accounts being frozen in a way that prevents points being redeemed. To find out more, I invited Mr. Sojka to do an e-mail Q&A. Here’s an edited transcript of our exchange.
In case you’re unfamiliar with PC Optimum, it turns spending at grocery stores in the Loblaw group and Shoppers Drug Mart outlets into points that can be redeemed toward purchases at either chain. Here are some tips from RewardsCanada on what to do if your PC Optimum account is frozen.
Q: Patrick, can you tell us a bit about yourself and RewardsCanada?
A: I am based in Calgary and run the RewardsCanada.ca and FrequentFlyerBonuses.com websites. I also do B2B loyalty consulting. Rewards Canada was what kicked it all off when I launched it back in 2001. It is Canada’s longest running loyalty rewards and credit card resource featuring news, tips, tricks, and rankings for all types of loyalty programs and credit cards.
Q: How many complaints have you received lately about PC Optimum accounts being frozen?
A: I have been averaging three to five complaints per week since early June, and this has continued right up until today (I received two today – Aug. 16).
Q: It’s unusual for you to issue a news release to draw media attention to an issue – why did you take this step with PC Optimum?
A: It has been quite a few years since I have issued a media alert about a loyalty program. I think the last one was in 2016 during the whole Air Miles expiry fiasco.
The reason to go this route is to see if we can get an expedited resolution from PC Optimum. I have been in contact with them and sent them some recommendations. But, based on the continued communication from PC Optimum members who have had their accounts frozen, the program seems to be dragging its feet in communicating to members, let alone fixing member accounts and the overall problem in general. So hopefully additional public exposure will get them to move quicker.
Q: What can you tell us about the frozen account problem? How many people have been affected?
A: A frozen account means that a PC Optimum member cannot redeem their points, but they can still access their account and they can still earn points. At this point I do not know how many people overall have been affected by this issue. The several dozen that approached me aren’t even a drop in the bucket of the total membership base, but I do wonder how many people are not even aware of their accounts being frozen.
The frozen account problem seems to stem from account security, fraud or violating program terms and conditions. The biggest issue is that PC Optimum does not communicate to members when their accounts have been frozen. Members only find out their account is frozen when they go to try to redeem their points at the point of purchase. Then, when members contact PC Optimum customer service, the response times are less than optimal. Some members who contacted me said they contacted PC Optimum by e-mail on numerous occasions but never received a response back.
A good portion of those members who contacted me stated they were eventually told by PC Optimum that the accounts were frozen due to those members breaking the program’s terms. In this group, a good portion were shoppers who took advantage of gift card bonus point offers at Shoppers or Loblaw grocery stores. It appears those purchases may trigger the freezing of the account, as they exceed what PC Optimum considers as typical spending for a single-family household. While they don’t put limits on the gift card purchases, PC Optimum does state in the general terms and conditions of the program that:
“If a program member was awarded PC Optimum points for an offer in which a member purchased product in excess of reasonable household quantities, the PC Optimum points awarded as a result of that offer may be forfeited without prior notice.”
Q: PC Optimum vs. Air Miles vs. Aeroplan vs. all the rest – who’s Number One in customer loyalty programs these days?
A: Air Miles has been flying with full afterburners since being acquired by Bank of Montreal. It has been quite a remarkable turnaround, and the program has been very giving to collectors. But it does have me wondering for how long, as I’m not sure how sustainable it is.
Aeroplan since their relaunch in late 2020 has seen tremendous growth and continues to be a very valuable program in the realm of travel and not just for flights. Their recent overhaul and expansion of hotel rewards provides really good value for members as well.
Scene+ is another good one that keeps trucking along even though things over there have been relatively quiet after they added Home Hardware last year.
One program that I am really fond of, which was made even better this year, is PetSmart Treats Rewards. Outside of Rewards Canada they don’t seem to get a lot of online coverage. But, gosh, it’s a rewarding program for pet owners. A minimum 2 per cent return on PetSmart spending and new elite tier levels with additional benefits and all that with quite competitive pricing in store.
Subscribe to Carrick on Money
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
Rob’s personal finance reading list
Renovation red flags
A look at four contractor scams that can add to the cost of a reno, or result in lower quality work. Now, for a look at what’s trendy – and not – in kitchen cabinet colours.
The horizontal wealth transfer
Hiding in plain sight amid all the talk of inter-generational wealth transfers is the flow of money to women who outlive their husbands. A new report says women typically hold onto this wealth for an average of four years before passing it on. Couples, make sure your financial plan addresses this issue.
OK, I’m retired. What savings should I draw on first?
A financial planner looks at one of the biggest questions for people entering retirement, which is how and when to draw up on the savings they’ve accumulated on their own and through workplace savings plans or pensions. Readers ask me about this often and my usual response is to buy a consultation with a financial planner. Get personalized advice.
Too expensive
A compilation of goods and services that people have stopped buying because they’re too expensive, including takeout pizza, skin care products and live concerts.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Attention aspiring solo home buyers
Are you single and looking to buy your first home? Journalist Kelsey Rolfe is working on a Globe and Mail story about how solo home buyers are coping amid high prices. To share your own personal story about why you’re determined to buy on your own and what you can afford, send her an email: kannerolfe@gmail.com
Reader comment
“Your thoughts on carrying cash while travelling are very true. I used to work on a yacht in the Mediterranean, so had the opportunity to visit many countries. In Greece, I struggled to find merchants that would accept card payments. I agree with your estimate of $200 or equivalent, and best in small denominations.
“I have a comment about travelling with cash. I used all of my cash to pay a dining bill for four people. No credit cards were accepted, only debit. The server and owner couldn’t get the debit machine to connect. Also in Newfoundland. Great meal.”
Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
Check out YouSet if you want to compare rates for home and auto insurance.
In the social sphere
Social Media: Thoughts on how to share costs when you’re a couple with an inequal income.
Listen: A podcast on why airline travel is so miserable as a result of delays, cancellations and changing rules. U.S.-focused, but the travelling experience is the same as here.
Money-Free Zone: A band called Seewolf has a single out called Run and Hide, and I have taken a shine to it because it’s so well put together. The guitars are killer, and the smoky, world weary vocals are just right.
More PF from The Globe
- How students can get the most out of their first credit card
- The maximum CPP pension future retirees could get is about to start changing in a big way
- Meet the Grandma Babysitting Club, a group of retirees offering a pop-up solution to Ontario’s daycare shortages
- Don’t be duped. The housing market isn’t weak when prices stall