Pepper Rewards is an app that stormed onto the scene earlier this year, selling in-demand brands at rates so low that it single-handedly depressed gift card resale rates nationwide.
They’ve re-jiggered their rewards program several times while creating a confusing, two-tiered system wherein part of the bonus is paid out immediately and a second tranche is delivered in 2-3 weeks. Originally, folks had to manually track how many points Pepper owed them, but they’ve now added a feature to the app that shows all of your past points earning as well as what you’re owed in the future…and it instantly updates with purchases.
Pepper’s daily discounted rates have become gaudier and gaudier which has made Pepper feel positively Ponzi. Our own Pepper, Stephen, wrote a cautionary tale about the developments at Pepper Rewards that I shared in a Saturday Selection a few weeks ago.
Today, Pepper announced yet another revision to its rewards program: newly-earned points will now expire 60 days from the last date of activity.
Disclaimer: Frequent Miler’s Stephen Pepper has no relation to Pepper Rewards…apart from being exceptionally well-named.
Quick Thoughts
Today, Pepper Rewards members got an e-mail stating:
Effective November 15, 2024, points expire if 60 days pass without a purchase. We encourage you to stay active to keep your points balance.
If you’ve already made a purchase, you’ll enjoy a grace period — this policy change will not take effect for you until February 1, 2025.
My guess is that Stephen isn’t the only person perplexed by Pepper. The size of the daily discounts offered (14x on Amazon, 15x on Nike, 14x on Lowes) combined with the two-tiered timing of the payouts have made many folks nervous about how long it will stay solvent.
Most likely, creating a 60-day expiration policy encourages folks who are active to remain so in order to ensure that their points don’t expire, while at the same time allowing Pepper to wipe away some of their rewards obligations via expiry.
If you are using the app regularly, the new policy won’t amount to much, as the activity will constantly keep your points alive. If you had multiple smaller purchases scattered out over several weeks and were waiting for enough to points to exchange them for a high-denomination gift card, it’s worth paying attention to make sure you don’t lose them.
Pepper continues to offer some incredible deals on gift cards, as well as an easy path to very low or no-cost spend. But be careful out there and go in with your eyes open.
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Where is it best to redeem points? Is there any chance the gas cards will be released of “temporarily unavailable* status?
Is this safe for meeting SUB on Amex cards? I know it earns 4x on gold, but i have no way of MSing 15k
Am I crazy? Why are more people not doing pepper? Target, Lowe’s, Walmart, Amazon….this is amazing at 12 to 15x. If I am getting 14 percent off at Walmart I am never stepping into a grocery store and getting 4x Amex gold again….
(Until the VC money runs out….)
This seems to be a trend among the rewards apps. Seated restaurant rewards can be wiped after 90 days, and inKind has the rewards expire after 60 days (they also won’t allow you to stack banked credit with their $10/month promos, so you can only access your banked credit if you use the app twice in the same month). I guess that is the tradeoff: power users can get a good deal, as long as they are active. Occasional users are wiped out to cover the cost. What a business model.
I recently heard about Pepper (The program that is) through a Reddit post. I’m surprised it was news to me as I keep up pretty well on points and miles stuff. Sounds like I missed the boat and I really, really, really don’t need another program with Draconian expiration rules to keep track of right now. I need it about as much as I need to shop at Kohl’s and participate in their cult like program.
Amex Gold Business codes as 4x on it.
I’ll take Amazon GCs for 4x points plus 14% cash back until all their VC money is bled dry any day.
It’s actually a very slick easy to use app as well.
I’m a big fan, but as FM mentions in no way can they be profitable.