Aeroplan Starts Clawing Back Points: What You Need to Know About Multiple Sign-Up Bonuses

Update 10/30/24: Aeroplan has sent out the following email regarding this clawback -

Thank you for being an Aeroplan Credit Cardholder. As you know, Section 10 of the Aeroplan Terms and Conditions states that Welcome Bonuses along with other bonuses, incentives and accelerators may be offered by Aeroplan and its financial institution partners as an incentive for a Member to become a holder of an Aeroplan Credit Card where that Member is neither currently, nor was previously, a holder of that type of Aeroplan Credit Card, regardless of issuing bank. In addition, the provisions provide that Aeroplan may, in its sole discretion, choose to limit the number of New Card Bonuses (including Welcome Bonuses) that a Member may receive in any period, and describes the remedies available to Aeroplan if a Member violates these terms.

As you have received more than the permitted number of New Card Bonuses for the same type of Aeroplan Credit Card, you are in violation of these provisions. As a gesture of goodwill, we will permit you to retain the additional bonus points earned as a result of the use of your Aeroplan Credit Card but will not permit you to retain the Welcome Bonus of the Aeroplan Credit Card. Accordingly, we have, pursuant to the Aeroplan Terms and Conditions, revoked the Aeroplan Points received by you in your Account from the excess Welcome Bonuses.

We remind you that as a member of the Aeroplan Program, you are obliged to comply with the Aeroplan Program Terms and Conditions and to maintain your account in good standing. Please review these carefully and ensure that you comply with these Terms and Conditions at all times.

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Earlier this week, many Aeroplan members were surprised to find their points balances unexpectedly adjusted, with points deducted under a “Welcome Bonus Adjustment.” This clawback seems to primarily target users who received multiple sign-up bonuses from Aeroplan credit cards issued by CIBC and TD. Here’s what’s happening, why it’s happening, and what it means for Aeroplan users moving forward.

What Are the Clawbacks?

A "clawback" occurs when a rewards program reclaims previously awarded points or miles. Recently, Aeroplan began reclaiming points from members who had received multiple welcome bonuses for Aeroplan credit cards issued by CIBC and TD. These adjustments, labeled as "Aeroplan Welcome Bonus Adjustments," generally deduct 10,000 points or less if the account balance didn’t contain 10,000 points. So far, Aeroplan hasn’t reduced any accounts to negative balances, and American Express-issued Aeroplan cards seem unaffected by this clawback. However, this could change if Aeroplan expands enforcement.

TD Bonus Adjustment

CIBC Bonus Adjustment

Aeroplan’s "New" Card Bonus Policy

Aeroplan updated its terms and conditions earlier this year to clarify the rules around earning new card bonuses. Here’s a breakdown of the policy:

10. New Card Bonus Provisions

From time to time, Aeroplan and the financial institutions that issue Aeroplan co-brand credit cards (an “Aeroplan Credit Card”), together with their respective affiliates and business partners, may offer an introductory incentive or bonus of Aeroplan Points (a “Welcome Bonus”) to incentivize a Member to become a holder of an Aeroplan Credit Card; and they may also offer an incentive or bonus of Aeroplan Points for a Member to, activate, use or hold their new Aeroplan Credit Card for a minimum period of time following issuance (the Welcome Bonus and all other bonuses, incentives and accelerators relating to acquisition, activation, use or holding of a new Aeroplan Credit Card, collectively, a “New Card Bonus”). In connection with a New Card Bonus being made available for becoming a holder of an Aeroplan Credit Card, such New Card Bonus is intended as an incentive for a Member to become a holder of an Aeroplan Credit Card where that Member is neither currently, nor was previously, a holder of that type of Aeroplan Credit Card, regardless of issuer (e.g., entry, core, premium, core small business, premium small business, or any other card that has a substantially similar level of benefits) for which the New Card Bonus is being offered. This means that a Member may be granted a maximum of one New Card Bonus for each type of Aeroplan Credit Card that the Member becomes a holder of, regardless of issuer.

From time to time, bonus or incentive Aeroplan Points may be offered by us or participating partners and suppliers to acquire products or services (“Products and Services”) as part of the Aeroplan Program. In connection with bonus or incentive Aeroplan Points being offered as an incentive related to Products and Services, such bonus Aeroplan Points incentives are intended for a Member who has not previously received bonus Aeroplan Points for the same Products or Services, to acquire such Products or Services.

Aeroplan may, in its sole discretion, choose to limit the number of New Card Bonuses or similar bonuses or incentives a Member may receive in any period, and, in addition to the other remedies set forth in these Terms and Conditions, reserves the right to suspend, revoke or terminate the Account of any person who engages in a behaviour of excessive use, abuse or misuse of the New Card Bonus offers. Such behaviours include but are not limited to: (i) applying for, transferring or switching (including upgrading or downgrading), or completing any other product changes between multiple Aeroplan Credit Cards across one or more product types, or across one or more financial institutions that issue an Aeroplan Credit Card; (ii) a pattern of cancelling, or disengaging in, an Aeroplan Credit Card shortly after receiving a New Card Bonus (or any portion of a New Card Bonus) or similar bonus or incentive; (iii) a pattern of purchasing and then cancelling or returning any product or service for which Aeroplan Points were issued; and (iv) linking your Aeroplan Credit Card to an Account that is not your own Account.

According to Aeroplan, each cardholder is eligible for only one “New Card Bonus” per type of Aeroplan credit card, regardless of the issuing bank. Aeroplan defines four card tiers:

1. Entry

   • Low or no annual fees, offering basic points-earning rates and few perks. Ideal for those new to Aeroplan or infrequent travelers.

   • Examples: TD Aeroplan Visa Platinum Card, CIBC Aeroplan Visa Card

2. Core

   • Moderate annual fees, higher points-earning rates, and added perks like a free checked bag and priority boarding.

   • Examples: TD Aeroplan Visa Infinite Card, CIBC Aeroplan Visa Infinite Card, American Express® Aeroplan Card

3. Premium

   • Higher annual fees with top-tier perks such as lounge access, companion tickets, and comprehensive travel insurance. Best for frequent travelers who value additional benefits.

   • Examples: TD Aeroplan Visa Infinite Privilege Card, CIBC Aeroplan Visa Infinite Privilege Card, American Express® Aeroplan Reserve Card

4. Business

   • Business-focused cards with higher points rates on business expenses, employee card options, and unique corporate travel perks. Ideal for business owners or corporate travelers.

   • Examples: TD Aeroplan Visa Business Card, American Express® Aeroplan Business Reserve Card

Under this policy, a member can earn a welcome bonus for each card tier, once per tier. Attempting to acquire additional bonuses for cards within the same tier, even if issued by a different bank, could result in a clawback. Aeroplan also reserves the right to suspend or terminate accounts engaged in “excessive use, abuse, or misuse” of New Card Bonuses.

Why Aeroplan Is Enforcing Clawbacks

While Aeroplan’s terms and conditions have evolved over the years, it’s unclear why they’ve recently started enforcing these rules more strictly. Since this crackdown currently appears to impact only the initial welcome bonus, it’s possible that Aeroplan may expand this approach to other promotional bonuses. Whether this is a reminder to adhere to Aeroplan’s guidelines or a sign of stricter enforcement to come, only time will tell. For now, staying informed and following Aeroplan’s terms and conditions is the best way to avoid penalties.

In Summary

Aeroplan’s recent clawbacks emphasize the importance of understanding the program’s updated rules around new card bonuses. With a limit of four distinct welcome bonuses—one per card tier—you should carefully consider their applicationtiming to maximize benefits while avoiding penalties. If Aeroplan intensifies enforcement, adhering to these guidelines will help protect your points balance from future clawbacks