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If the recent updates to the Air Canada Aeroplan program teach us anything, it's that paying attention to the small print is a good idea.
The latest update to Aeroplan's terms and conditions suggests your account could get shut down for participating in suspected illicit activity, which includes collecting a welcome bonus on one of the carrier's co-branded credit cards and never swiping it again.
The new terms are vague and are a lot to digest, but here's what we know about the updates most relevant to co-branded credit card holders, plus some questions we still have.
Air Canada Updated the Aeroplan Program's Terms and Conditions
In what appears to be the latest update in the saga of Air Canada's fight against “misuse” of the Aeroplan program, we've learned that the carrier is continuing to take aim at “illicit activity,” though it's in a non-courtroom angle.
On its face, making the Aeroplan program better for its members by rooting out the bad seems like a noble goal. However, a thorough review of what's changing in the program's terms and conditions makes the nobility seem insincere — instead making Aeroplan more of a nuisance for people who actually want to use it.
Here's what we mean.
Air Canada emailed Aeroplan members in November about updates to the program terms and conditions that'll take effect in February 2024. In the updated terms, you'll find the carrier plans to crack down on “prohibited activities” via increased policing on “disengagement” in the program itself.
What does this mean for my co-branded credit card?
What's most relevant to AwardWallet readers is Air Canada's focus on those who sign up for co-branded credit cards, earn the welcome bonus, and shove them in the sock drawer — or what they call “disengaging” in the Aeroplan program.
Here's what section 11 of the new terms says about mothballing one of the carrier's credit cards (emphasis ours). You could be audited!
“Aeroplan reserves the right to audit a Member’s Account at any time and without notice to ensure compliance with these Terms and Conditions. Where, in the reasonable opinion of Aeroplan, a Member has violated these Terms and Conditions, or Aeroplan believes that a Member may have violated these Terms and Conditions, Aeroplan may, in addition to its other rights and remedies in these Terms and Conditions, at any time and in its sole discretion, take one or more of the following actions: (i) freeze the Account of any Member while Aeroplan investigates suspected activity on the part of that Member; and (ii) refuse to credit the Account of any Member, or debit the Account of any Member, including reversal of Aeroplan Points previously credited.”
As to what specific actions (or level of inaction) will trigger an audit of an Aeroplan account, we don't know. Outside of the language that states Aeroplan accounts are up for termination after 36 consecutive months of inactivity, there's a lot of subjectivity regarding account closure. It very well could be random.
Unfortunately, that's not all. Air Canada goes slightly further on the credit card front, addressing holding multiple co-branded cards and earning multiple welcome bonuses (emphasis ours):
“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.”
Again, some of the terms are vague. Disengaging shortly after receiving a welcome bonus? What does “shortly” mean? Days, weeks, months, or years — or is it denominated in dollars?
Avoid issues by keeping your account active, playing by the rules
To state the obvious, the best way to avoid Air Canada's wrath is to keep your account active and avoid mothballing a co-branded credit card after earning the welcome bonus.
Simply put, you shouldn't run into any issues if you play by the rules. But as to what the rules are, well, that's still somewhat unclear.
Will Air Canada shut your account down if you don't credit enough flights to Aeroplan, earn and redeem enough miles, or swipe your card a certain number of times? We don't know.
Hopefully, the carrier provides some clarity over the new terms and what it really means to be “engaged.” Otherwise, the juice of signing up for an Aeroplan credit card might not be worth the squeeze.
Final Thoughts
Air Canada is adjusting the terms and conditions of the Aeroplan program to crack down on bad actors. Unfortunately, the new terms leave a lot of gray areas — especially when it comes to credit cards. Some of that applies mostly to Canadians, as they have more options for Air Canada credit cards than those in the U.S.
If the sea of legalese means anything, you'll want to remain active in the Aeroplan program if you have a co-branded credit card. Otherwise, your account could come under scrutiny for “disengagement.”
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